eSignatures gain importance in UAE as commercial transactions rise
Growing eCommerce marketplace and supply chain industry has triggered the usage of eSignatures further
Dubai, UAE, August 9th, 2020: Abdulla Alawadi & Associates, one of UAE’s oldest and prestigious law firms, has witnessed a growth in eSignatures post the pandemic. The term `electronic signature’ refers to an electronic sound, symbol, or process, attached to or clearly connected to a form or a contractual agreement and is executed by the authorized signatory with the intent to sign the contract or form. These eSignatures then become legally binding for businesses and for personal transactions.
"Pandemic brought the global economy to a near standstill, and the most immediate business impact has been a major disruption to supply chains. During these times, eSignatures provide the same legal standing as a handwritten signature as long as it adheres to the requirements of the specific regulation under which it was created. The UAE Federal Law No.1 of 2006, concerning electronic transactions and commerce including the eCommerce law regulates eSignatures in the UAE”, stated Adv. Abdulla Alawadi, Founder and Chairman of the law firm.
Today, corporate houses and leaders are facing the urgency and complexity of reopening their businesses; it requires a program of reinvention. Technology as an enabler has provided a platform to drive through these business challenges. Businesses are investing more in digital data-driven technology and cloud platforms, to have more variable cost structures, agile operations and automation, in order to create stronger capabilities in security and business continuity.
eSignatures recently and due to the pandemic have become a trade trend and essential process that needs to be implemented on a larger scale. Majority of commercial firms have started to recognize and acknowledge eSignatures into their daily transactions. Speaking on the security aspect of eSignatures, Advocate Abdulla Alawadi, further added, “In order to protect the signatory from any external or internal misuse, it is important to implement high security and legal measures to ensure only the authorised person to whom the eSignature is linked may access and use their eSignature. Measures that may be undertaken include authentication certificate and not sharing access to the eSignature or authentication certificate with any other person."
It is important to note that electronic signatures are only as secure as the business processes and technology used to create them. High value or more important transactions need better quality electronic signatures, and signatures used for these transactions need to be more securely linked to the signatory in order to provide the level of assurance needed to ensure trust in the underlying system.
Ibrahim Hanifeh, Senior Associate, Litigation, Abdulla Alawadi & Associates stated that, “We are legally structuring our client’s internal day-to-day transactions to ensure that they are digitally protected, and their interests are fully secured. Besides, we also advise them the importance and how to incorporate the use of e-signatures in the UAE".
"The UAE courts accept eSignatures as having legal force and effect as long as they meet the requirements of the Law. eSignatures in connection with electronic transactions and commerce have probative force. UAE courts will not accept eSignatures with respect to the following documents, as the eCommerce law does not apply. For example, eSignatures on documents concerning marriage, divorce, wills, title deeds of real estate, transactions concerning the sale and purchase of real estate, and documents required by law to be executed before a notary public,” concluded Ibrahim.
About Abdulla Alawadi & Associates:
Founded by Adv. Abdulla Al Awadi in 1998, the firm has grown to become one of the most prestigious law firms in the region, excelling in litigation before UAE Courts. The firm has solved over 5000 plus cases over the last two decades is well represented by a team of lawyers with a wealth of industry experience across 13 industry sectors. For more information please log on to https://abdullaalawadi.com/.
Media contact:Prem A. Ramachandran
White Water Public Relations