Legislation Details
- Full Title: Federal Decree by Law on Electronic Transactions and Trust Services
- Law Type: Federal Decree-Law
- Law Number: (46) of 2021
- Issued Date: 20 Sep 2021
- Effective Date: 02 Jan 2022
- Official Gazette: No. 712
- Sector: Justice and Judiciary
- Status: Active
- Number of Articles: 112
- Chapters/Parts: 0
- Amendments: 0
Summary
This Federal Decree-Law regulates electronic transactions and trust services in the United Arab Emirates. Its purpose is to enhance trust, encourage and facilitate electronic transactions, keep pace with technological development, and promote digital transformation and investment. The law establishes the legal framework for the use of electronic documents, signatures, seals, and various trust services, including qualified trust services provided by licensed providers. It also sets out the rights, obligations, and responsibilities of parties involved in electronic dealings and trust services. (Federal Decree by Law on Electronic Transactions and Trust Services, 2021, Art. 1-4) The law is significant for businesses and individuals in the UAE as it provides legal certainty and recognition for electronic transactions and trust services, enabling their wider adoption and use across different sectors. It also empowers the Telecommunications and Digital Government Regulatory Authority (TDRA) to regulate and oversee the provision of these services, ensuring compliance with defined standards and requirements. (Federal Decree by Law on Electronic Transactions and Trust Services, 2021, Art. 1-4)
What is the scope and purpose of this law?
The Federal Decree-Law on Electronic Transactions and Trust Services applies to persons who adopt electronic transactions, trust services, and qualified trust services, as well as the electronic transactions, documents, trust services, and qualified trust services themselves. It aims to enhance trust, encourage and facilitate electronic transactions of all kinds, keep pace with technological development, and promote digital transformation, investment, and the provision of electronic services to the public. (Federal Decree by Law on Electronic Transactions and Trust Services, 2021, Art. 2-3)
What are the key definitions under this law?
The law provides the following key definitions:
- Electronic: Electromagnetic, photoelectric, digital, optical, or the like. (Federal Decree by Law on Electronic Transactions and Trust Services, 2021, Art. 1)
- Electronic Transactions: Any transaction that is made, executed, provided or issued in whole or in part in electronic form, including contracts, agreements and other transactions and services. (Federal Decree by Law on Electronic Transactions and Trust Services, 2021, Art. 1)
- Electronic Document: An electronic record or message, or an information statement that is created, stored, extracted, copied, sent, communicated or received by Information Technology Means, on any medium, and is retrievable in a readable manner. (Federal Decree by Law on Electronic Transactions and Trust Services, 2021, Art. 1)
- Trust Services: The electronic services specified under Clause (1) of Article (17) which a Trust Service Provider is licensed to provide. (Federal Decree by Law on Electronic Transactions and Trust Services, 2021, Art. 1)
- Qualified Trust Services: The electronic services specified under Clause (2) of Article (17) which a Qualified Trust Service Provider is licensed to provide. (Federal Decree by Law on Electronic Transactions and Trust Services, 2021, Art. 1)
What are the main obligations and requirements?
The law imposes several key obligations and requirements: 1. Persons must adopt electronic transactions, trust services, and qualified trust services in accordance with the provisions of the law. (Federal Decree by Law on Electronic Transactions and Trust Services, 2021, Art. 2) 2. Electronic transactions, documents, trust services, and qualified trust services must comply with the requirements set out in the law. (Federal Decree by Law on Electronic Transactions and Trust Services, 2021, Art. 2) 3. Trust service providers and qualified trust service providers must obtain a license from the Telecommunications and Digital Government Regulatory Authority (TDRA) and comply with the conditions and obligations specified in the law and its executive regulations. (Federal Decree by Law on Electronic Transactions and Trust Services, 2021, Art. 15, 35-36) 4. Signatories, digital identity owners, and relying parties must fulfill their respective responsibilities as outlined in the law. (Federal Decree by Law on Electronic Transactions and Trust Services, 2021, Art. 29-31)
What licensing, registration, or approval requirements exist?
The law requires trust service providers and qualified trust service providers to obtain a license from the Telecommunications and Digital Government Regulatory Authority (TDRA) to provide their respective services. The law specifies the conditions and obligations that licensees must comply with, including requirements related to the provision of trust services, qualified trust services, and the maintenance of the UAE Trust List. (Federal Decree by Law on Electronic Transactions and Trust Services, 2021, Art. 15, 35-36)
What rights and protections does this law provide?
The law provides the following rights and protections: 1. It enhances trust and encourages the use of electronic transactions and trust services. (Federal Decree by Law on Electronic Transactions and Trust Services, 2021, Art. 3) 2. It protects the rights of customers using electronic transactions and trust services. (Federal Decree by Law on Electronic Transactions and Trust Services, 2021, Art. 3) 3. It ensures the availability of trust services for people with disabilities. (Federal Decree by Law on Electronic Transactions and Trust Services, 2021, Art. 32)
Which authorities or bodies are responsible for enforcement?
The Telecommunications and Digital Government Regulatory Authority (TDRA) is the main authority responsible for the enforcement of this law. TDRA's key responsibilities include: 1. Issuing licenses for trust service providers and qualified trust service providers. (Federal Decree by Law on Electronic Transactions and Trust Services, 2021, Art. 15) 2. Overseeing and monitoring the compliance of licensees with the law's requirements. (Federal Decree by Law on Electronic Transactions and Trust Services, 2021, Art. 35-36) 3. Preparing and publishing the UAE Trust List. (Federal Decree by Law on Electronic Transactions and Trust Services, 2021, Art. 27) 4. Issuing decisions and regulations to implement the provisions of the law. (Federal Decree by Law on Electronic Transactions and Trust Services, 2021, Art. 4, 52)
What are the penalties for non-compliance?
The law specifies the following penalties for non-compliance: 1. A fine of not less than AED 50,000 and not more than AED 500,000 for providing trust services or qualified trust services without a license. (Federal Decree by Law on Electronic Transactions and Trust Services, 2021, Art. 48) 2. A fine of not less than AED 20,000 and not more than AED 200,000 for violating the obligations of licensees or qualified trust service providers. (Federal Decree by Law on Electronic Transactions and Trust Services, 2021, Art. 48) 3. A fine of not less than AED 10,000 and not more than AED 100,000 for violating other provisions of the law or its executive regulations. (Federal Decree by Law on Electronic Transactions and Trust Services, 2021, Art. 48) 4. The TDRA may also suspend or revoke the license of a trust service provider or qualified trust service provider in case of repeated or serious violations. (Federal Decree by Law on Electronic Transactions and Trust Services, 2021, Art. 48)
What fees, charges, or financial provisions are specified?
The law states that TDRA may collect fees for the services it provides under this law, as specified in the executive regulations. However, the law does not provide any details on the specific fees or charges. (Federal Decree by Law on Electronic Transactions and Trust Services, 2021, Art. 51)
What exemptions or exceptions apply?
The law does not specify any exemptions or exceptions. However, it states that the Cabinet may add, delete or exclude any transaction, document, service or procedure from the scope of the law, and may exclude any entity from all or some of the provisions of the law. (Federal Decree by Law on Electronic Transactions and Trust Services, 2021, Art. 2)
How are disputes resolved under this law?
The law does not specify any dispute resolution mechanisms or procedures. It is silent on how disputes related to electronic transactions, trust services, or the implementation of this law are to be resolved.
What are the key deadlines and time limits?
The law does not specify any deadlines or time limits, except for the effective date of the law, which is 02 Jan 2022. (Federal Decree by Law on Electronic Transactions and Trust Services, 2021, Art. 54)
How does this law interact with other UAE legislation?
The law references and interacts with several other UAE federal laws, including: - Federal Law No. (1) of 1972 on the Competencies of the Ministries and Powers of the Ministers - Federal Law No. (5) of 1985 promulgating the Civil Transactions Law - Federal Law No. (10) of 1992 promulgating the Law of Evidence in Civil and Commercial Transactions - Federal Law No. (11) of 1992 promulgating the Civil Procedure Code - Federal Law No. (35) of 1992 promulgating the Criminal Procedure Code - Federal Law No. (4) of 2000 on the Emirates Securities and Commodities Authority and Market - Federal Decree Law No. (3) of 2003 Regulating the Telecommunications Sector - Federal Law No. (1) of 2006 on Electronic Commerce and Transactions - Federal Law No. (29) of 2006 on the Rights of People with Disabilities - Federal Law No. (4) of 2013 Regulating the Notary Public Profession - Federal Law No. (5) of 2017 on the Use of Remote Communication Technology in Criminal Proceedings - Federal Decree Law No. (14) of 2018 on the Central Bank and Organization of Financial Institutions and Activities - Federal Decree Law No. (14) of 2021 Establishing the Federal Authority for Identity, Citizenship, Customs and Port Security (Federal Decree by Law on Electronic Transactions and Trust Services, 2021, Preamble)
When did this law come into effect?
The Federal Decree-Law on Electronic Transactions and Trust Services came into effect on 02 Jan 2022, as specified in Article 54. It was published in the Official Gazette No. 712 on 26 Sep 2021. (Federal Decree by Law on Electronic Transactions and Trust Services, 2021, Art. 54)
Source Documents
This article analyses Federal Decree by Law on Electronic Transactions and Trust Services for legal research and educational purposes. For the purpose of interpretation and application, reference must be made to the original Arabic text. In case of conflict, the Arabic text prevails. This does not constitute legal advice.