Introduction of E-Commerce and the UAE Law

This document discusses the current state of the UAE laws affecting e-commerce. It examines certain legal issues that are pertinent to e-commerce, including rules of intellectual property protection, evidence, contracting, media, agency law, e-banking and online financial services, e-government, consumer protection, applicable law, jurisdiction, title to sue, privacy, internet service providers, taxation and the judicial system under the existing UAE Federal and local law. It will also highlight the recent developments to the legal system of the UAE in terms of either the draft federal law that is in the pipeline or those that have been recently passed at the local level, being Law No.5 of 2001 concerning the use of computers in Criminal Procedures and Law No.2 of 2002 concerning Electronic Transactions and Commerce, which are Dubai specific laws.

As mentioned above, a new law was recently issued in Dubai relevant to the use of computers in criminal procedures. Pursuant to this new law, Dubai Law No. 5 of 2001, documents with electronic signatures will be admissible as evidence in criminal investigations. The provisions of the law acknowledge signatures of individuals acquired through the use of computers and other means of information technology for purposes of proof in criminal cases.

In addition, most recently, and in an attempt to regulate electronic transactions and boost users confidence, his Highness Sheikh Maktoum Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, has issued a local law for the Emirate of Dubai, Law No. 2 of 2002 Concerning Electronic Transactions and Commerce. The 39 articles Law is a combination of the United Nations guidelines and local specifications and is meant to facilitate e-correspondence through reliable e-books; remove any barriers to e-commerce and other e-transactions; facilitate submitting e-documents to government departments and institutions; reduce the number of submissions of e-correspondence and amendments thereto; set uniform criteria for documentation and security of e-correspondence; boost the public's confidence in security and validity of e-books and correspondence; and enhance development of e-commerce and other transactions, locally and internationally, through using e-signature.

The Electronic Transactions and Commerce Law observes international principles related to e-commerce and transactions and the latest development in this field. The clauses of the aforementioned law shall not be applicable to personal status transactions such as marriages, divorces and wills, negotiable instruments, ownership documents of unmovable property, transactions related to the purchase and sale of unmovable property and any document that requires attestation by the Notary Public.

Article 36 of the said law authorizes Crown Prince of Dubai and UAE Minister of Defence General Sheikh Mohammed bin Rashid Al Maktoum in his capacity as Chairman of Dubai Technology, E-Commerce and Media Free Zone Authority, to exempt any individual or corporate body from all or some of the provisions of this law or any related regulations. Sheikh Mohammed is also authorized to set up arbitration panels to look into disputes that may arise after implementation of this law. Further, Article 38 of the law states that Sheikh Mohammed will issue the executive regulations of this law, which shall come into effect once it is officially published.

It has also been reported that a draft of the 'Cybercrime' Law is currently being reviewed at the federal level on electronic signatures, along with direct reference to the Singapore Electronic Transactions Act. According to a Ministry of Justice and Islamic Affairs official, the law would contain two categories to deal with crimes committed on the Internet. One would be a set of laws on digital signatures and issues related to signing and forgery of electronic documents. The other set would address crimes such as hacking, stealing credit card numbers, invasion of privacy, copyright violations and online theft. The articles would be flexible to allow amendments to cover situations arising from newer developments in information technology. The official also said that establishing rules for evidence in cyber crime is one of the main difficulties in formulating cyber laws.

This document will shed light on the areas of e-commerce that have been regulated under those laws. However, the laws from other jurisdictions that are mentioned in this brochure are meant as guidelines only, and not applicable to the United Arab Emirates.

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