As the United Arab Emirates continues its transformation into a global business hub, the adoption of electronic signatures has become a key driver of operational efficiency and trust among stakeholders. This shift from traditional ink-based processes is not merely a trend, but a strategic move aligned with the UAE’s vision of building a knowledge-based, digitally empowered economy.
In support of this vision, the government’s ambitious Dubai Paperless Strategy represents a major step toward sustainability and innovation. By significantly reducing paper dependency, the initiative seeks to streamline administrative processes, enhance service delivery, and reduce environmental impact across both public and private sectors.
Electronic signatures are legally recognized in the UAE and are provided for under the Federal Decree by Law No. 46 of 2021 on Electronic Transactions and Trust Services (UAE Electronic Transactions Law), ADGM Electronic Transactions Regulations 2021 (ADGM Electronic Transactions Regulations), and DIFC Law No. 2 of 2017 (DIFC Electronic Transactions Law) (collectively, the “Electronic Transactions Laws”).
Legal Validity of Electronic Signatures
Where the law requires a document to be signed or sealed—and prescribes consequences for non-compliance—this requirement may be met using an electronic signature, provided the following conditions are satisfied:
- The method used must reliably identify the signatory and clearly express their intention in relation to the contents of the electronic document.
- The method must be suitable and appropriate for the purpose for which the electronic document was created or transmitted.
- Unless a specific form of authentication is required by law, any form of electronic authentication may be used.
Onshore UAE
The primary legislation governing the use of electronic signatures in onshore UAE is the UAE Electronic Transactions Law, along with its implementing regulations.
Types of Electronic Signatures in the UAE
Under the UAE Electronic Transactions Law, electronic signatures are categorized into three distinct types:
- Electronic Signature:
This refers to any symbol, code, sound, fingerprint, or electronic process attached to or logically associated with an electronic document that identifies the signatory and affirms their approval of its content.
- Qualified Electronic Signature:
This type of signature must meet certain criteria, including:
- Exclusive control by the signatory;
- Ability to verify the signatory’s identity;
- Detection of any alteration to the signed data;
- Use of secure technical protocols as stipulated by executive regulations; and
- Compliance with any additional regulatory conditions.
- Approved Electronic Signature:
This category involves more stringent requirements. It must:
- Be based on a valid, approved authentication certificate;
- Be generated using an officially sanctioned signature tool;
- Ensure that the data confirming authenticity matches the data presented to the relying party;
- Properly communicate signatory data, even when anonymization tools are used;
- Adhere to specified technical and security guidelines; and
- Satisfy other applicable conditions under the law and related regulations.
Legal Recognition and Admissibility
The UAE Electronic Transactions Law is founded on four guiding principles:
- Use of electronic transactions, including signatures, is voluntary—though consent may be inferred from conduct;
- Unless otherwise mandated, any form of electronic signature may be used;
- Government entities are expected to recognize electronic signatures; and
- Relying parties are accountable for verifying the validity of authentication certificates.
While electronic signatures cannot be dismissed solely due to their digital form, Approved Electronic Signatures are considered legally equivalent to handwritten ones if all legal conditions are met.
Trust Service Providers
There are two classes:
- Trust Service Providers (TSPs): Licensed to provide general trust services.
- Approved Trust Service Providers: Authorized to deliver both standard and approved trust services, with this scope outlined in their TDRA license.
As of January 2024, previous certifications under the repealed 2006 law are no longer valid. The Telecommunications and Digital Government Regulatory Authority (TDRA) has yet to publish a revised list of licensed providers under the new law, though legacy provider information remains publicly available.
Cross-Border Recognition
Approved trust services from foreign providers may be recognized in the UAE if their standards align with those mandated by the TDRA.
Special Use Cases
Notably, the updated law no longer maintains a list of transactions where electronic signatures are disallowed. However, traditional (wet-ink) signatures may still be required in specific high-risk or notarized transactions, depending on sectoral laws or regulatory frameworks.
Dubai International Financial Centre (DIFC)
As a distinct legal jurisdiction within the UAE, the DIFC operates under its own legislative framework. The key regulation governing electronic signatures in the DIFC is the DIFC Electronic Transactions Law No. 2 of 2017. This law was enacted to:
- Encourage the use of electronic means for conducting transactions within the DIFC by addressing uncertainties around formal requirements for writing and signatures.
- Support the development of the necessary legal and commercial infrastructure to enable secure electronic transactions.
- Create consistent legal standards and procedures related to the authentication and integrity of electronic records.
Definition and Legal Effect of Electronic Signatures
An Electronic Signature under the DIFC law is defined as any electronic sound, symbol, or process that is either attached to or logically connected with a record and executed or adopted by an individual with the intention to sign it.
To be effective, an Electronic Signature must be attributable to the person signing. Attribution may be demonstrated through any available method, including through the reliability of security measures employed to associate the signature with the individual. The legal consequences of using an electronic signature are determined based on context, surrounding circumstances, and any agreement between the parties.
An electronic signature is considered valid and sufficient to establish identity and intent if it is either:
- Reliable and appropriate given the purpose and circumstances surrounding the electronic record; or
- Proven to fulfill the purpose of identifying the signer and indicating intent, either independently or with supporting evidence.
The law makes it clear that electronic signatures satisfy any statutory signature requirement. Furthermore, such signatures are admissible in legal proceedings and cannot be dismissed solely due to their digital format.
Digital Certificates and Optional Enhancements
Although the DIFC law does not mandate or explicitly regulate the use of digital certificates, businesses within the DIFC may opt to use certificate-based digital signatures to enhance security. These can serve as additional evidence to establish that a signature is valid and properly attributable under the law.
Abu Dhabi Global Market (ADGM)
Under the ADGM Electronic Transactions Regulations, an electronic signature is defined as “an electronic sound, symbol or process attached to or logically associated with an electronic record, which may be used to identify the signatory and to indicate the signatory’s approval of the information contained in the electronic record.”
An electronic signature is considered valid under the Regulations if either of the following conditions is met:
- The type of electronic signature used is reliable and appropriate for the purpose for which the electronic record was generated or communicated, considering all relevant circumstances, including any agreement between the parties; or
- It is proven, whether on its own or with supporting evidence, to fulfill the identification and approval functions described above.
An electronic signature is deemed reliable if it meets the following criteria:
- The signature creation data are, within the relevant context, uniquely linked to the signatory and to no other person;
- The signature creation data were under the sole control of the signatory at the time of signing;
- Any alteration to the electronic signature after the time of signing is detectable; and
- Where the purpose of requiring a signature is to ensure the integrity of the signed information, any subsequent alteration to that information is also detectable.
Only electronic signatures that are both valid and reliable under the ADGM Regulations are accorded the same legal status as handwritten signatures.
Unlike the UAE Federal Electronic Transactions Law, the ADGM Electronic Transactions Regulations do not require that electronic signatures be issued by a provider authorized by the Telecommunications and Digital Government Regulatory Authority (TDRA), nor do they grant any elevated legal status to such signatures.
Special Considerations: When Wet Ink Signatures Are Still Required in the DIFC
Article 8 of the DIFC Electronic Transactions Law outlines exceptions where the use of electronic signatures is not permitted. Specifically, the law does not override requirements for handwritten or traditional signatures in the following situations:
- The creation, execution, or enforcement of powers of attorney.
- The creation, execution, or enforcement of trust declarations, except for implied, resulting, or constructive trusts. This includes any writing requirements under the DIFC Trust Law of 2005.
- The creation and execution of wills, codicils, and testamentary trusts.
- The execution and use of affidavits or affirmations for court proceedings, as outlined in Rule 29 of the DIFC Courts Rules of 2014.
Documents That May Be Signed Electronically
The Electronic Transactions Laws do not explicitly prohibit the use of electronic signatures for any particular type of document or transaction. However, certain government entities and ministries may still mandate the use of handwritten (wet ink) signatures for documents or forms submitted to them.
Given the current lack of comprehensive legal clarity in this area, it is advisable to exercise caution when using electronic signatures for high-value or business-critical agreements. This caution applies even where such agreements include a specific clause confirming the parties’ acceptance of electronic execution as valid and legally binding.
Disclaimer
The information on this site is for general information purposes only and is not intended to serve as legal advice. Laws governing the subject matter may change quickly, so Flowmono cannot guarantee that all the information on this site is current or correct. Should you have specific legal questions about any of the information on this site, you should consult with a legal practitioner in your area.
Resources
