Are electronic signatures legal in Saudi Arabia? What are the main laws regulating electronic signatures?

The legal and regulatory system in the Kingdom of Saudi Arabia ("KSA") is dynamic, with application and interpretation constantly changing.

Electronic signatures are legal in KSA and are regulated by Saudi Arabia Cabinet Decision No.80/1428 (Electronic Transactions Law ("ET")) issued by Royal Decree No. M/8 of 26 March 2007 and Saudi Arabia Implementation Regulation No.1/1429 issued on 18 March 2008.

What is Saudi electronic signature?

The ET Act defines an electronic signature as "an electronic data use included in, attached to or logically associated with an electronic transaction for the purpose of verifying the identity and approval of the signer and discovering any changes to the transaction after the signature".

What kind of electronic signature is valid in Saudi Arabia?

According to the relevant provisions of the Implementation Regulations, an electronic signature shall meet the following conditions of validity:

• It is accompanied by an authorized and valid digital certificate；
• The identity data of the signer is maintained and corresponds to the digital certificate;
• The integrity of the electronic signature system/service and its connection to the electronic data system are protected and maintained, and there are no technical defects that could affect the validity of the signature;
• Manage the signature process and confidentiality of data in accordance with the technical conditions specified in the digital certification procedures issued by the National Digital Certification Center (Centre); and
• The signatory has complied with all the conditions set out in the digital certification procedure issued by the Centre.

Can an electronic signature be used as evidence in a lawsuit if it does not meet the relevant validity requirements of the Saudi Implementation Regulations?

Electronic transactions or signatures that meet the validity requirements of electronic signature as set out in the Regulations may be accepted as presumptive evidence in legal proceedings. If the above conditions are not met, article 9 of the ET Act provides for various considerations to assess their reliability and qualification as evidence:

• Methods of creating, storing or transmitting electronic records and the possibility of tampering with them;
• Methods to maintain information integrity;
• Identify the method of the initiator.

Article 5 of the ET Act clearly stipulates that the executability of a contract cannot be denied simply because it was concluded electronically. In order to prove the validity of a contract, the parties may sometimes have to present evidence in court.

What types of documents can Saudi Arabia sign electronically?

Many common business documents can be signed electronically, including: offer letters, new employee paperwork and staff policy updates, confidentiality agreements, job descriptions, sales contracts, purchase orders and master service agreements, account opening paperwork, insurance applications and claims, student services, patient admission forms, but there are different signature standards for specific documents.

When is a traditional signature usually needed in Saudi Arabia?

Traditional signatures are usually required in the following instruments or situations:

• Transfer of property ownership certificate
• Letter of delegation of authority
• To sign the articles of association of the limited company and any amendments thereto