Electronic Signature Law and Legal Validity – Saudi Arabia

Electronic Signature Law in Saudi Arabia: Overview & Legality

Digital signatures have been legally recognized in Saudi Arabia since 2007, but their usage is limited to certified electronic transactions and may not be permitted for general business purposes.

Can electronic signatures be used for business in Saudi Arabia? No, there may be situations where eSignatures are not an option for general business use.

Are digital signatures court-admissible in Saudi Arabia? Yes, although additional evidence may be required.

What is the legal model of an electronic signature in Saudi Arabia? Saudi Arabia operates under a tiered legal model.

Summary of Saudi Arabia’s legal framework: Saudi Arabia follows traditional Islamic law.

The legal model in Saudi Arabia is based on traditional Sharia law, derived from teachings in the Quran. Any regulations that violate Sharia law principles are considered null and void.

While contractual freedom is recognized, Saudi courts will not uphold provisions that contradict Sharia law.

Judicial precedents hold little emphasis in Saudi Arabia. The outcome of a case does not necessarily determine the outcome of similar cases, as judges base their decisions on their interpretation of Sharia law.

eSignature laws in Saudi Arabia:

According to Saudi law, a handwritten signature is not mandatory to validate a contract. Contracts are legally binding if two competent individuals reach a verbal, written, or electronic agreement.

However, additional evidence may be required in certain situations, which poses challenges for verbal agreements or contracts with standard electronic signatures.

The Electronic Transactions Law:

Saudi Arabia’s eSignature laws are established through the Electronic Transaction Law passed in 2007. This law states that a handwritten signature is not required for a contract to be legally binding.

Article 5 of the Electronic Transactions Law ensures that contracts cannot be denied enforceability solely because they are electronic.

Use cases for eSignatures:

There are three types of digital signatures, but we will focus on two: standard electronic signatures (SES) and qualified electronic signatures (QES).

SES is the basic form of an eSignature, where the signatory can draw or type their name without third-party verification.

QES is an eSignature supported by a qualified certificate and is legally equivalent to a handwritten signature.

Acceptable use cases for SES:

The following scenarios are suitable for SES in Saudi Arabia:

• HR documents
• Employee onboarding paperwork
• Sales terms
• Retail accounts
• Invoices

Acceptable use cases for QES:

The following scenarios are suitable for QES in Saudi Arabia:

• Purchase agreements
• Commercial agreements
• Payment terms
• Non-disclosure agreements (NDAs)
• Residential and commercial real estate agreements

Unacceptable use cases for eSignatures:

The following scenarios require a handwritten signature and do not accept eSignatures:

• Estate title transfers
• Notarizations
• Power of attorney

Can MSB Docs software be used in Saudi Arabia?

Yes, our eSignature software complies with the laws of over 42 countries, including the UK, India, the United States, Canada, Germany, and more. You can use our software to create contracts and receive qualified electronic signatures. If you are interested, you can sign up for a free 14-day trial to try it out.