ADGM starts public consultation on electronic transactions’ norms

Abu Dhabi Global Market (ADGM) announced on Tuesday that it has published a public consultation paper on its proposed electronic transactions regulations aiming at putting parties engaging in electronic transactions at ease in terms of degree of certainty.

While businesses and consumers are adapting to electronic dealings, including online contracting and electronic signatures, legal concepts have traditionally been based on the existence of a tangible or physical medium. Concepts such as a document, an ‘original’ or a ‘signature’ still remain relevant in legislation and need to be considered in today’s ever-changing digital environment, particularly when taking into consideration the impact of COVID-19.

The proposed electronic transactions regulations aim to clarify that electronic signatures are enforceable and that electronic records have an impact equivalent to that of physical copies. The regulations also highlight that references to “writing” in legislation include electronic form and therefore confirm the validity of electronic contracts.

Dhaher Bin Dhaher Al Mheiri, CEO of the ADGM Registration Authority, said: “These proposed regulations 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. We are confident that the implementation of the proposed Electronic Transactions Regulations will provide a strong framework for e-Commerce and electronic dealings within the ADGM community, in line with international best practice. With digital transformation on an accelerated pathway, we will continue in our tireless endeavours to develop a world-leading regulatory framework that supports the needs of stakeholders, accelerates innovation, and upholds the highest global standards and best practice.”

ADGM invites public feedback and comments on the proposed Electronic Transactions Regulations.

Abu Dhabi Global Market (ADGM), an international financial centre (IFC) located in the capital city of the United Arab Emirates, opened for business on Oct.21, 2015. Established by a UAE Federal Decree as a broad-based financial centre, ADGM augments Abu Dhabi’s position as a global trade and business hub serving as a strategic link between the growing economies of the Middle East, Africa and South Asia and the rest of the world.

ADGM’s strategy is anchored by Abu Dhabi’s key strengths panning over private banking, wealth management, asset management, derivatives and commodities trading, financial innovation, sustainability and more. Comprising three independent authorities: ADGM Courts, the Financial Services Regulatory Authority and the Registration Authority, ADGM as an IFC governs the entire 114 hectares (1.14sqkm) of Al Maryah Island which is a designated financial free zone.

It enables registered financial and non-financial institutions, companies and entities to operate, innovate and succeed within an international regulatory framework based on common law. Since its inception, ADGM has been awarded the “Financial Centre of the Year (Mena) for four consecutive years for its initiatives and contributions to the financial and capital markets industry in the region.

Meanwhile the Abu Dhabi Global Market (ADGM) the award-winning International Financial Centre, has been named the “Best International Financial Centre, EMEA, 2020” by London-based Capital Finance International (CFI.co) for the second consecutive year.

The award recognises the ADGM’s achievements in the financial and judicial services sectors, and the transformational initiatives enhancing its value proposition as a strategic International Financial Centre serving the needs of global, regional and local stakeholders.

The award marks several successful milestones achieved by the ADGM over the year. Despite the current unprecedented circumstances, the ADGM has continued to thrive with key initiatives introduced to support business growth and create new business opportunities. The judging panel commended the ADGM for its progressive vision and efforts to deliver a world-class regulatory framework for digital financial services, being the first jurisdiction in the Middle East and North Africa, Mena, region to implement English common law in its entirety, and upholding international best-practice. The ADGM is also recognised for developing international ties to foster economic growth through greater collaboration, connectivity and expansion.

Richard Teng, Chief Executive Officer, Financial Services Regulatory Authority of ADGM, said, “On behalf of ADGM’s Executive Management, we are humbled and honoured to receive this recognition by the panel of judges of CFI.co and the global community. We will continue to press ahead with key initiatives to support business growth, accelerate innovation and uphold the highest global standards and best practice for the benefit of our customers, investors and the overall Abu Dhabi economy.”

WAM