Understanding the Legal Power of E-Signatures in the UAE

Introduction: The Rise of Digital Deals

Imagine closing a multimillion-dirham property deal without ever touching a pen. In today’s fast-moving business environment, this is no longer a futuristic concept but an everyday reality. As companies in the UAE increasingly pivot toward digital transformation, the use of electronic signatures has become a practical and efficient method to sign contracts.

But how valid and enforceable are electronic signatures under UAE law? Can you really rely on them to enforce a contract in court? And what about scanned PDFs sent by email? Are these scanned PDFs with wet ink signatures considered as electronic documents holding electronic signature?

In this article, we break down the legal framework governing electronic signatures in the UAE, offering a friendly guide to the key laws, practices, and market trends that shape this important topic.

What Are Electronic Signatures and Are They Legal?

Electronic signatures, or “e-signatures,” are a method of digitally signing a document. In the UAE, they are recognized and enforceable under Federal Law No. 46 of 2021 on Electronic Transactions and Trust Services (the “ETTS Law”), along with its supporting Cabinet Resolution No. 28 of 2023.

Under Article 1 of the ETTS Law, e-signatures include letters, numbers, symbols, voice, fingerprint, or any electronic process logically linked to a document and used to confirm the signer’s identity and intent. In short, if the e-signature identifies the signer and confirms they agreed to the content of the signed document, it likely counts as a valid E-signature.

The UAE Evidence Law (Federal Law No. 35 of 2022) also backs this up. Articles 53 to 56 confirm that electronic documents and signatures hold the same evidentiary weight in court as traditional paper documents and wet-ink signatures, provided they meet certain legal requirements.

Are Scanned Signatures via Email Valid?

Yes, but with a twist. A scanned handwritten signature sent via email is not considered an e-signature under the strict definition in the ETTS Law. However, the scanned document is still regarded as an electronic record under UAE Evidence Law, and courts have accepted it as valid evidence in many cases.

This means that scanned and emailed contracts are valid simply because they are digital and hold the evidentiary weight of electronic records as provided under UAE Evidence Law. Still, they may not offer the same evidentiary strength as advanced or qualified e-signatures unless additional steps are taken to verify the identity of the signer and the integrity of the document. We discuss below the key differences between Advanced and Qualified E-signatures as defined under the ETTS Law.

The ETTS Law introduces two levels of e-signatures:

• Advanced Electronic Signature (AES): More secure than a basic e-signature, AES must meet criteria that confirm the signer’s identity and ensure the signature is uniquely linked to them.
• Qualified Electronic Signature (QES): The gold standard. QES is the highest level of digital security, offering the same legal weight as a handwritten signature.

To be valid, these signatures must be issued by a Trust Service Provider (“TSP”) authorized by the UAE’s Telecommunications and Digital Government Regulatory Authority (TDRA). Providers like DocuSign are on this approved list.

UAEPASS also provides E-signature services where users can sign many kinds of documents online through a mobile app. Although UAEPASS is not officially listed as a TSP, it is a government-operated initiative and widely accepted for official transactions.

What Do the UAE Courts Say about E-signatures?

UAE courts have consistently upheld the legal effect of electronic signatures. For instance:

• In Dubai Court of Cassation Case No. 131 of 2022, the court ruled that electronic documents and signatures are admissible as long as they meet legal criteria.
• In Abu Dhabi Court of Appeal Case No. 529 of 2021, the court emphasized that an electronic message or signature holds legal value if its origin and integrity can be proven.

These rulings confirm that e-signatures are not only theoretically legal but are also practically enforceable in real-world disputes.

ADGM/DIFC vs. UAE Federal Law: Which Rules Apply in Terms of E-signatures?

For companies operating in the Abu Dhabi Global Market (“ADGM”) or Dubai International Financial Center (“DIFC”), the ADGM Electronic Transactions Regulations 2021 or the DIFC Electronic Transactions Law No. 2 of 2017 (as amended by DIFC Law No. 2 of 2022) governs the use of e-signatures. These rules are largely aligned with the federal ETTS Law but do not differentiate between AES and QES.

In practice, even if a contract falls under ADGM or DIFC law, using e-signatures that comply with ETTS Law provisions provides the same evidentiary weight as the ADGM or DIFC law. The ETTS Law provisions could also provide higher protection in case of AES and QES

Real Estate Developers and Market Practice

While the law is clear in terms of the validity and enforceability of e-signatures, market practice is still catching up. Many companies in the UAE still rely on traditional wet-ink signatures or scanned documents. However, there is a growing trend toward digitalization, especially for high-volume contracts in sectors like real estate.

Some construction developers now use platforms like DocuSign or integrate UAEPASS into their websites to streamline signing processes. This shift not only speeds up transactions but also reduces paperwork and human error.

Recommendations: Best Practices for Using E-Signatures

If you are considering adopting electronic signatures in the UAE, here are a few tips to stay on the right side of the law:

• Use TDRA-authorized platforms like DocuSign, especially for high-value contracts.
• Consider integrating UAEPASS for official or government-related transactions.
• For scanned signatures, always confirm the signer’s email and keep clear records of the signing process.
• When possible, opt for Qualified Electronic Signatures to ensure maximum enforceability.

Conclusion: Signing Off with Confidence

Electronic signatures have gone from a convenient option to an indispensable tool in the UAE. Backed by robust laws and court rulings, they are now a secure, reliable, and widely accepted method for executing contracts. Whether you’re a multinational developer or a startup founder, embracing e-signatures can give you the speed, flexibility, and confidence to move forward in a digital age, without ever reaching for a pen.