The Abu Dhabi Global Market (ADGM), an international financial center has published a public consultation paper on its proposed electronic transaction regulations.
The regulation was initiated to motivate parties to engage in electronic transactions with relief in terms of the degree of certainty.
Current situations have made businesses and consumers switch to electronic dealing like online contracts and electronic signature but the existing legal concepts are based on the traditional tangible or physical documents.
Even though the mode of transactions has changed, concepts like document, signature are relevant in legislation so it should be reviewed considering the current digital environment especially with the impact of the pandemic.
The proposed electronic transaction regulation focuses on offering clarity regarding the electronic signature that it is enforceable and the electronic documents which are equal to that of tangible copies.
The regulation also mentioned that the references on “writing” in law will include an electronic form to confirm the effectiveness of electronic contracts.
“ These proposed regulations 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.”
Mr. Al Mheiri also affirmed that they are optimistic the regulation will support e-commerce and electronic dealing within the ADGM community and ensures to continue developing a regulatory framework to support the needs of shareholders.