Abu Dhabi’s renowned international financial center and free zone, Abu Dhabi Global Market (ADGM) has implemented a new set of regulations governing electronic transactions.
The new rules are adopted to ensure that electronic versions of signatures, contracts, records and documents are legally enforceable in ADGM as in their physical form.
ADGM said in a statement that the legal documents pertaining to signatures, contracts and records have traditionally existed in physical form but it needs to be “reconsidered in today’s ever-changing digital environment particularly when taking into consideration the significant growth of the digital economy as well as the impact of COVID-19.”
“ADGM is proud to introduce such innovative legislation that will facilitate a strong framework for eCommerce and electronic dealings within the ADGM community, in line with the highest global standards and best practice. The new Electronic Transactions Regulations 2021 demonstrate ADGM’s continued commitment to building a strong and sustainable International Financial Centre that promotes business growth of, and certainty for, our stakeholders in today’s digital economy.”
ADGM is the third jurisdiction in the world to pass legislation allowing the use of electronic versions of transferable documents and instruments like promissory notes and cheques. The new rules are based on the United Nations (UN) Commission on International Trade Law’s commandments on eCommerce.
Earlier this month, ADGM has replaced its Data Protection Regulations formulated in 2015 with the newly enacted Data Protection Regulations of 2021, to ensure the safety of personal and confidential data.