Dubai International Financial Centre (DIFC) has announced the enactment of the new Electronic Transactions Law, DIFC Law No. 2 of 2017, that will apply in the jurisdiction of DIFC free zone.
This means that signatures, contracts and general documentation shall not be denied legal effect, validity or enforceability solely on the ground that they are in the electronic form.
It’s necessary, however, to comply with some conditions.
The electronic signature, for example, is deemed to identify the relevant person and to indicate his/her intention in respect of the information contained in the electronic document. It has to be reliable and appropriate for the purpose for which the document has been generated or communicated, including any relevant agreement, and able to prove in fact to have fulfilled such conditions.
In the context of the formation of contract, an offer and the acceptance of an offer has to be expressed by means of electronic communications between the parties and a proof has to be provided upon request of the authority.
Other kind of electronic documentation is accepted if it preserves the information contained therein and is capable of being reproduced in tangible form.
This law will facilitate electronic transaction in DIFC, establish uniformity of rules, regulations and standards for the authentication and integrity of electronic documents and last, but not least, reduce the stress and simplify the business activities.
To know more information or to setup business in Dubai International Financial Centre, click here.
Mara Di Marco
General Manager, UAEstablishment