This document discusses the e-commerce legal framework in the UAE. It provides an overview of Federal Law No. (1) of 2006 on electronic commerce and transactions, the objectives of e-commerce laws in the UAE, and the role of the Telecommunications Regulatory Authority (TRA) in regulating e-commerce through licensing certified service providers and developing e-commerce regulations. It also examines the current position and readiness of the UAE's e-commerce sector, identifies gaps, and discusses the benefits new e-commerce regulations could provide for online businesses and consumers in the UAE.

1. E-Commerce Legal Framework In The UAE
The Role of the TRA in E-Commerce in the UAE
Basema Aljaberi
Senior eCommerce Officer

2. Agenda
1. Federal Law No.(1) of 2006 On electronic
Commerce and Transaction;
2. ecommerce Law Objectives
3. ecommerce Regulations Development
4. Licensing and Regulating ecommerce;
5. Despite…Recession!
6. Under Development ecommerce Regulations
7. Benefits
Page 2

3. Federal Law No. (1) of 2006 On
electronic Commerce and
Transaction
Page 3

4. eCommerce Law Objectives
• Protect the rights of persons conducting business electronically and define their
obligations.
• Encourage and facilitate Electronic Transactions and Communications by means of reliable
Electronic Records.
• Facilitate and eliminate barriers to Electronic Commerce and other Electronic Transactions,
and promote the development of the legal and business infrastructure necessary to
implement secure Electronic Commerce.
• Minimize the incidence of forged Electronic Communications, alteration of
Communications and fraud in Electronic Commerce and other Electronic Transactions.
• Establish uniform rules, regulations and standards for the authentication and validity of
Electronic Communications.
• Promote public confidence in the validity, integrity and reliability of Electronic
Transactions, Communications and Records.
• Promote the growth of Electronic Commerce and other transactions on the national and
international level through the use of Electronic Signatures.
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5. E-Commerce Legal Regulatory Development
1. First Generation of Legal / Regulatory Development
• Main theme: Establishing the regulatory framework
• Developing licensing framework
2. Second Generation of Legal / Regulatory Development
• Main theme: Strengthening the Public Trust and Credibility
of E-Commerce
• Developing Regulatory framework
• Issuing regulations for online consumer protection, privacy, IPR
protection, etc.
3. Third Generation of Legal / Regulatory Development
• Main theme: Contributing to the development of the Digital
Economy of the UAE
• Research
• Consumer and e-business education and awareness
• Further development of regulatory framework
• Monitoring compliance
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6. Cabinet Decision
• A Federal Law by Decree No. 1 of 2006 pertaining to Ecommerce was
published in the Official Gazette of the United Arab Emirates, Volume
442, 36th Year, Muharam 1427 H/January 2006
• Shortly thereafter the TRA has been entrusted by the Supreme
Committee with regulatory powers to develop, regulate and monitor all
that is pertaining to electronic transactions and commerce including but
not limited to electronic records, documents, and signatures relating to
electronic transactions and commerce!
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7. Hybird model
Outlining relevant policy considerations, roadmap and ecommerce regulatory regime
framework options
Regulatory Spectrum
Prescriptive Regimes Minimalist Regimes
Hybrid (Moderate) Regimes
UAE Chooses?
Hybrid Regimes
• These approaches strive to achieve a balance among policy considerations, support economic growth and
technological innovation and satisfy market interests.
• Hybrid regimes act as effective catalysts for the promotion of trusted eCommerce, within a region and on
the global stage.
• They are congruent with international trends.
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8. Licensing & Regulating CSP
CSP Controller (TRA)
Certificates service
provider CSP CSP CSP
Digital certificates
Licensing the CSP involves 4 steps:
Obtain a CSP Submit
license application Application along Review by the
with required Final decision
TRA
documents
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9. Despite…
Recession!
Page 9

10. Scale of Strategy Concerns
UNCTAD E-Commerce and Development Report
Developing • Basic telecommunications and access to the Internet
• Human capacity building
Countries • Affordable access (PCs)
• National ICT Policy and Plan
• Appropriate software (legal, low cost)
• Local language enabled; local content
• Portal sites; e-Government – government facilitation
• Standards in manufacturing, safety, health
• IT Laws (e-transactions, e-signatures, computer crime)
• Security - information, system, network
• Authentication and certification (PKI, CSPs)
• Broadband access (business, home)
• IT human resources development
• Regional networking
• Liberalization
• e-Marketplaces; e-Payment infrastructure
• Consumer Protection; Privacy protection
Developed • Cross-border certification
Countries • Intellectual property rights protection
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11. Current Position of the UAE - Successes
Developing • Basic telecommunications and access to the Internet
• Human capacity building
Countries • Affordable access (PCs)
• National ICT Policy and Plan
• Appropriate software (legal, low cost)
• Local language enabled; local content
• Portal sites; e-Government – government facilitation
• Standards in manufacturing, safety, health
• IT Laws (e-transactions, e-signatures, computer crime)
• Security - information, system, network
• Authentication and certification (PKI, CSPs)
• Broadband access (business, home)
• IT human resources development
• Regional networking
• Liberalization
• e-Marketplaces; e-Payment infrastructure
• Consumer Protection; Privacy protection
Developed • Cross-border certification
Countries • Intellectual property rights protection
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12. Current Position of the UAE - Gaps
Developing • Basic telecommunications and access to the Internet
• Human capacity building
Countries • Affordable access (PCs)
• National ICT Policy and Plan
• Appropriate software (legal, low cost)
• Local language enabled; local content
• Portal sites; e-Government – government facilitation
• Standards in manufacturing, safety, health
• IT Laws (e-transactions, e-signatures, computer crime)
• Security - information, system, network
• Authentication and certification (PKI, CSPs)
• Broadband access (business, home)
• IT human resources development
• Regional networking
• Liberalization
• e-Marketplaces; e-Payment infrastructure
• Consumer Protection; Privacy protection
Developed • Cross-border certification
Countries • Intellectual property rights protection
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13. UAE eReadiness Maturity
8.00
7.00
6.00
5.00 2008
2009
4.00 2010
3.00
2.00
Connect. Bus. En. S&C En. Legal En. Gv.&P. Con.&Bus.
Vision Adp.
* EIU eReadiness Reports 2008/2009/2010
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14. MaterCard Survey (UAE)
ecommerce Sector Per. (%)
Airline Tickets 59
Home Appliances & Electronic 37
Products
Hotel Accommodation Online 30
* Master Card survey indicates the above finding were
reached by the fourth Quarter of 2008.
* MasterCard Online shopping Reports 2008
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15. Under Development eCommerce
Regulations
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16. UAE E-Businesses and Consumers
Currently there is massive movement toward developing
regulations:
• e-payment or m-payment methods;
• electronic transactions and communications;
• online consumer protection;
• online data and privacy protection; or
• online intellectual property rights protection.
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17. Benefits
• Provides regulatory certainty for online consumers and
businesses;
• Provides protection for online consumers and
businesses;
• Contributes to growth of sustainable digital economy in
the UAE;
• Raises the profile of the UAE and promotes the UAE
as a favorable environment for e-businesses; and
• Revised organization structure provides a career path
for e-commerce officers.
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18. Thank you.