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    ADGM enacts Electronic Transactions Framework

    ADGM RA 28/02/2021
    ADGM enacts Electronic Transactions Framework
    • Regulations to facilitate the digital economy and to give certainty to users of electronic transactions

    Abu Dhabi Global Market (ADGM), the award-winning International Financial Centre located in Abu Dhabi, announced today that it has enacted the Electronic Transactions Regulations 2021. The objective of these Regulations is to confirm that electronic signatures, contracts, records and documents are legally enforceable in ADGM as the traditional non-electronic (that is, physical) versions.

    The need for the Regulations arises because legal concepts relating to signatures, contracts, records and documents have traditionally been based on the existence of a physical medium. However, these concepts need to be reconsidered in today’s ever-changing digital environment, particularly when taking into consideration the significant growth of the digital economy as well as the impact of COVID-19.

    The Regulations are based on the United Nations Commission on International Trade Law (UNCITRAL) Model Laws on Electronic Commerce. ADGM is only the third jurisdiction in the world to enact legislation to allow the use of transferable documents and instruments, such as promissory notes and cheques, in electronic form.

    Dhaher Bin Dhaher Al Mheiri, CEO of the ADGM Registration Authority, said: “ADGM is proud to introduce such innovative legislation that will facilitate a strong framework for e-Commerce and electronic dealings within the ADGM community, in line with the highest global standards and best practice. The new Electronic Transactions Regulations 2021 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.”

    For more information on the Regulation, please visit the dedicated webpage for the new Electronic Transactions Regulations 2021.