DIFC Electronic Transactions Law

DIFC Law No. 2/2017 DIFC Electronic Transactions Law became effective in May 2017 and is the primary law in the Dubai International Financial Centre (DIFC) governing contracting on the Internet. DIFC Law No. 2/2017 establishes a legal framework for enforceability of both electronic contracts and electronic signatures as lawful transactional mechanisms in the free zone. DIFC Law No. 2/2017 provides legal certainty for electronic transactions and allows electronic commerce to operate on the same basis as paper transactions.This commentary proposes to analyse DIFC Law No. 2/2017 and provide guidance on its terms and application.

Background

During the consultation process for DIFC Law No. 2/2017 in 2016, the DIFC Authority explained that it wanted to clarify, from a DIFC law perspective, that:

electronic signatures would be enforceable;
electronic records have the same effect in law as hard copies;
references to writing include writing by electronic means;
agreements made electronically would be as valid as those signed with ‘wet ink' signatures; and
electronic documents would be treated as equivalent to paper documents.