ADGM adopts electronic transactions framework

The new regulations aim to facilitate the digital economy

ADGM is only the third jurisdiction in the world to enact legislation to allow the use of transferable documents in electronic form. Alamy

Abu Dhabi Global Market has enacted a new set of regulations governing electronic transactions, the global financial centre said in a statement on Sunday.

The new rules are implemented to ensure that electronic versions of signatures, contracts, records and documents are legally enforceable in ADGM as in their physical form.

Traditionally, the legal documents pertaining to signatures, contracts and records have existed in physical form but it needs 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”, ADGM said.

The new regulations demonstrate the ADGM’s commitment to building a strong and sustainable international financial centre that promotes growth of its stakeholders in today’s digital economy, Dhaher Al Mheiri, chief executive 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,” Mr Al Mheiri said.

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. The new regulations are based on the UN Commission on International Trade Law's commandments on e-commerce.

Earlier this month, ADGM also enacted a new set of regulations to ensure the safety of personal and confidential data.