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Why choose electronic signatures?

In the wake of digital transformation, sending electronic documents online has become a common practice. Often, these documents require signatures as proof of the agreement. This is achieved with the help of electronic signatures. They provide an efficient way to sign documents online, reducing paperwork and enabling more streamlined transactions.

In addition to easing the process, e-signatures help protect your documents with their enhanced security and authentication techniques. They outweigh handwritten signatures in various aspects, with security being the most significant. As a result, e-signatures are gaining popularity with businesses worldwide, helping them meet their objectives efficiently.

E-signatures: Key to achieving the UAE's paperless vision

As the Emirates evolves into a global business hub, the shift from traditional ink signatures to electronic signatures has become pivotal in enhancing operational efficiency and fostering trust among customers and partners. This digital transformation is not just a fad; it is a strategic alignment with the UAE's vision of a knowledge-based economy, empowering businesses to thrive in an increasingly digital marketplace.

Furthermore, the government's ambitious "Dubai Paperless Strategy" is a significant step toward a more sustainable future. By drastically reducing paper usage, this initiative aims to streamline business processes and minimize environmental impact.

Zoho Sign, a robust digital signature tool, can be the perfect entity for digital, paperless services. With its secure and user-friendly interface, Zoho Sign offers businesses an array of benefits, including:

  • Speed
  • Productivity
  • Authentication
  • Security
  • Remote access
  • Improved user experience
  • Cost-effectiveness

Sectors at the forefront of digital transformation

E-signatures and the law

The UAE has established a comprehensive legal framework for electronic signatures that prioritises security, validity, and enforceability in digital transactions. Here, we explore the essential elements of e-signature laws in the UAE and the criteria that must be met for an e-signature to be recognised as legally binding.

Applicable laws and regulations about the use of electronic signatures in the Emirates

  • Federal Decree law No. 46 of 2021 - Electronic Transactions and Trust Services ("2021 Law")
  • Cabinet Resolution No. 28 of 2023 - Executive regulations ("2023 Law")

Legal validity of Electronic Signatures

When the law mandates a signature or seal to be affixed on a document and specifies consequences for its absence, then such a requirement can be satisfied by an electronic signature if it fulfils the following conditions:

  • It must employ a method that can both identify the signatory and indicate their intent regarding the contents of the electronic document.
  • The chosen method must be appropriate and relevant to the purpose for which the electronic document is created or sent.
  • Any type of electronic authentication is permitted, unless specified otherwise by law.

Types of Electronic Signatures recognised under the law

Electronic Signature

An Electronic Signature is defined by the 2021 Law as "a signature consisting of letters, numbers, symbols, voice, fingerprint, or processing system of Electronic form, attached or logically linked to an Electronic Document, which verifies the identity of a Signatory and their acceptance of the Data content associated thereto."

Advanced Electronic Signature

An Advanced Electronic Signature must meet the criteria established in Article (19) of the 2021 Law, which include the following:

  • It must be completely and exclusively linked to the signatory and be under their control.
  • It should identify the signatory.
  • It should be capable of detecting any alterations made to the electronic document.
  • It must adhere to the requirements outlined in Section 13 of Resolution No. 51 of 2023.

Qualified Electronic Signature

A Qualified Electronic Signature, created with a Qualified E-Signature Device and backed by a Qualified E-Signature Certificate, is deemed valid only if the following conditions are met:

  • The validation data of the Qualified E-Signature must correspond to the data submitted to the relying party.
  • Data identifying the Signatory associated with the Qualified E-Signature Certificate must be accurately submitted to the relying party. If pseudonymization techniques are used to conceal personal data, the relying party must be informed.
  • These signatures are generated using technical and security methods that comply with the standards specified in Resolution No. 51 of 2023.

Evidentiary value of Electronic Signatures

  • The 2021 Law affirms that all recognised types of electronic signatures are admissible in UAE courts and should not be excluded simply because they are in electronic form.
  • A Qualified Electronic Signature holds the same authenticity as a handwritten signature.
  • Advanced Electronic Signatures are also admissible and carry legal effect, although the law does not specifically address the extent of presumption or differences in admissibility between Qualified and Advanced Electronic Signatures.

Electronic Signature Certificate

An Electronic Signature Certificate is an electronic document issued by a Trusted Service Provider (TSP) that associates specific E-Signature verification data with a particular person and their unique E-Signature to establish the name, identity, or pseudonym of that person.

A Qualified E-Signature Certificate is an authenticated E-Signature document issued by a Qualified Trust Service Provider (QTSP). It is based on the Electronic Identification System and verification procedure, and meets the requirements approved by the Telecommunications and Digital Government Regulatory Authority (TDRA).

Electronic Seal

An Electronic Seal is defined as "Data in Electronic form, related or logically linked to an Electronic Document, used to verify a Person’s identity, as well as the Data source origin and integrity therein."

The requirements, standards, and legal validity of an Electronic Seal are consistent with those of an Electronic Signature under the 2021 Law. The 2021 Law recognises three kinds of Electronic Seals:

  • Electronic Seal
  • Advanced Electronic Seal
  • Qualified Electronic Seal

Time Stamping

A Time Stamp is electronic data that associates a specific time to a particular electronic document, confirming that the document existed at that exact point in time.

The 2021 law recognises "Qualified Electronic Time Stamp" service which is issued by a QTSP and meets the following conditions:

  • It must securely bind the date and time to the electronic document, preventing any undetectable modifications to the document.
  • It must be based on a precise time source synchronised with Coordinated Universal Time (UTC).
  • It must sign or seal the electronic document using an Advanced Electronic Signature or an Advanced Electronic Seal from a QTSP, or another method specified by the law.

Document timestamping provided by Zoho Sign

Zoho Sign partners with recognised timestamping authorities, GlobalSign and Seiko, to provide trusted digital timestamps for electronic transactions. These timestamps validate the authenticity of e-signatures and verify that the signed document existed in the given form at the time of signing and remains unaltered, adding a robust layer of security to the signing process. By making signatures tamper-proof, digital timestamps enhance the reliability of signed documents for both legal and commercial purposes.

GlobalSign for businesses in the UAESeiko for businesses in the UAE

Features that make Zoho Sign a must-have for UAE businesses

Zoho Sign offers a modern, digital solution that makes creating, signing, and managing documents simple. With its advanced features, Zoho Sign can help streamline your business processes, boost productivity, and secure all your digital transactions. Here's how:

  • Identification and reliability:

    Zoho Sign employs strong authentication techniques, such as OTP authentication and PKI-based digital signatures using digital certificates, to ensure that the e-signature is uniquely identifiable.

  • Sole control over the data being signed:

    Only the signatory is allowed to review the document before signing and reject the document if necessary.

  • Detectable alterations:

    Zoho Sign ensures any alterations to the electronic signature or the document to which the signature is affixed are detectable through an elaborate audit trail of occurrence of all activities during the signing process. This audit trail comprises critical information such as the identity of the signatory, the timestamp of the signature, and changes made to the document.

  • Enhanced security:

    Zoho Sign employs robust encryption protocols, such as the military grade AES-256 encryption at rest and the TLS/SSL protocol in transit, to ensure that the data transmission between the signing platform and the data being signed is secure. This prevents exposure of documents and data from data breaches.

  • Audit trails:

    Audit trails provide a comprehensive record of every action taken on a document, ensuring full transparency and accountability throughout the signing process. This detailed log enhances security and serves as legal evidence in case of disputes, making it a vital tool for businesses to maintain compliance and trust in their digital transactions.

Key takeaway

E-signatures are vital for helping businesses break free from the limitations of paper-based workflows and step into a world of simple, seamless digital agreements. With Zoho Sign, you can streamline your digital transactions, enabling effortless collaboration from anywhere in the globe while keeping costs down. Zoho Sign isn't just a tool for signing documents—it's your gateway to digital transformation in the UAE!

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Disclaimer

The information provided in this document is for general informational purposes only and shall not be construed as legal, regulatory, or any other form of professional advice. Zoho Sign disclaims any liability for any error in the information provided herein. We recommend that you consult your legal counsel for any questions that you may have in this regard.