Doing Business in the U.A.E? Here's How the New E-comers Law Affects You

 Federal Law No. (1) of 2006 concerning Electronic Transactions and Commerce (ETCL) was a foundational piece of legislation in the UAE, but it's no longer the primary law governing electronic transactions. Here's a breakdown of the situation:

Federal Law No. (1) of 2006:

This law, enacted in 2006, established a legal framework for electronic transactions in the UAE.

It addressed key aspects like the legal validity of electronic documents and digital signatures.

It played a crucial role in promoting trust and confidence in electronic commerce activities.

Amendments and Superseded Status:

While there weren't any direct amendments to Federal Law No. (1) of 2006, the UAE recognized the need for a more comprehensive legal framework for the evolving digital landscape.

To address this need, the Federal Decree by Law No. 46 of 2021, also known as the Electronic Transactions and Trust Services Law (ETTSL), was introduced.

Federal Decree by Law No. 46 of 2021 came into effect in January 2022, superseding the 2006 law.

Current Landscape:

The ETTSL builds upon the foundation laid by the 2006 law but offers a more robust framework.

It emphasizes legal certainty in electronic interactions, aligns with international standards like the European eIDAS Regulation, and promotes the digital transformation of the UAE.

In essence, Federal Law No. (1) of 2006 is no longer the primary legal reference for electronic transactions in the UAE. You should refer to the provisions of the Federal Decree by Law No. 46 of 2021 for the current legal framework.

Federal Decree by Law No. 46 of 2021

Federal Decree by Law No. 46 of 2021, also known as the Electronic Transactions and Trust Services Law (ETTSL), is a significant piece of legislation in the United Arab Emirates. Its primary goals are to:

Boost trust and encourage electronic transactions: The law aims to make electronic transactions more reliable and secure, promoting their wider adoption across various sectors.

Protect customer rights: It includes provisions safeguarding the rights of individuals engaging in electronic transactions.

Support digital transformation: The ETTSL aligns with the UAE's national digital vision by fostering digital transformation and investment in electronic services.

Here are some key aspects of Federal Decree by Law No. 46 of 2021:

Legal validity of electronic documents and digital signatures: The law grants electronic and digital signatures the same legal weight as traditional paper documents and handwritten signatures, provided they meet specific criteria.

Regulations for electronic transactions: The ETTSL outlines rules governing the conduct of electronic transactions, including data storage, transmission, and record-keeping requirements for electronic documents.

Licensing of trust service providers: The law establishes a licensing framework for Trust Service Providers (TSPs) who create, validate, and manage electronic signatures and digital certificates.

Federal Decree by Law No. 46 of 2021 is accompanied by Executive Regulations issued in March 2023. These regulations provide further details on licensing procedures for TSPs, validation and retention standards for electronic documents and signatures, and other aspects of the law.

Federal Decree-Law No. 14 of 2023, also called the "Trade through Modern Technology Law", is a recent piece of legislation in the United Arab Emirates (UAE) aimed at supporting the country's digital transformation and growth in e-commerce.

Here are some of the key objectives of this law:

• Promote trade through advanced technologies: The law encourages the use of modern technology for business activities, facilitating a more digitalized trading environment.
• Enhance consumer protection: It aims to create a safe space for consumers by ensuring electronic security and cybersecurity measures are in place during online transactions.
• Attract investment: By creating a robust legal framework for e-commerce, the UAE hopes to become a more attractive destination for businesses and investors.

Overall, this law signifies the UAE's commitment to modernizing its economy and becoming a leader in the global e-commerce market.

If you'd like to explore the specifics of the law, you can find the official English translation on the website of the Telecommunications and Digital Government Regulatory Authority (TDRA)