DIFC law opens for public comment

Dubai: The proposed Electronic Transactions Law that has opened for public comment is aimed at creating a secure legal environment for companies in the Dubai International Financial Centre (DIFC) to undertake electronic transactions.

The law sets clear rules, regulations, and standards for authenticating electronic messages, records and signatures.

Dr Omar Bin Sulaiman, Governor (DIFC) and Vice Chairman of the UAE Central Bank, said: "In furtherance of DIFC's efforts to be a catalyst for the growth of financial and capital markets, the new law helps to ensure a strong and supportive legal framework for electronic transactions undertaken from within DIFC.

"The Electronic Transactions Law reinforces DIFC's strong emphasis on integrity, transparency and efficiency."

The law provides the certainty needed for financial transactions.

The proposed Electronic Transactions Law (ETL) is based on the Uniform Electronic Transactions Act 1999 (UETA) drafted by a committee of the National Conference of Commissioners on Uniform State Laws in the US and adopted by most states in the US. The UETA contains provisions derived from, among others, the UNCITRAL Model Law on Electronic Signatures and Canadian law.

The ETL is not a general contracting statute. The substantive rules of contracts remain unaffected by the ETL. The ETL does not apply to all writings and signatures, but only to electronic records and signatures relating to commercial transactions.

Following the consultation process, the Electronic Transactions Law will be presented to the Ruler of Dubai for enactment in accordance with Dubai Law No 9. The Law is expected to be made official by January 2009.

The Electronic Transactions Law Law, posted on the DIFC website will be open for public comment until January 2.

The proposed Electronic Transactions Law is a move towards creating a favourable and secure legal environment for companies within DIFC to undertake electronic transactions.