In a significant leap towards modernizing its legal framework for digital commerce, the United Arab Emirates has introduced a comprehensive new law encompassing all forms of online payment and digital transactions. This pioneering legislation, detailed by David Yates, partner and head of digital and data at Al Tamimi & Company, marks a notable shift in the regulation of digital trade both within and beyond the country’s borders.
Yates, in an interview with Khaleej Times, elaborated on the scope and intent of the new law. “This groundbreaking legislation is designed to regulate trade across all digital platforms, transcending traditional e-commerce, which primarily focused on websites. Today’s digital trade encompasses a plethora of platforms, including mobile apps and blockchain technologies. The new law abstracts the core principles of trade and provides an inclusive definition of technological means, a facet that was previously unaddressed in e-commerce regulations. Essentially, it governs any digital medium through which trade is conducted.”
Enacted as Federal Decree No. 14 of 2023, the law significantly broadens the scope of regulation compared to its predecessor, offering enhanced protection for consumers in the UAE. It applies to digital transactions conducted by buyers and sellers both within the UAE and internationally when residents purchase products. However, Yates noted certain exclusions, such as government procurement, digital currencies, and financial services.
One of the key aspects Yates highlighted is the law’s forward-thinking nature. “It’s not just about regulating present technologies like blockchain, mobile apps, and digital platforms but also future technologies that are yet to emerge. This law is remarkably consumer-centric, offering additional protections and mandatory provisions like feedback mechanisms on digital platforms and safeguards against fraud.”
Abdulla bin Touq Al Marri, the UAE’s Minister of Economy, also emphasized the consumer-focused nature of the law. He pointed out the new regulations grant consumers enhanced rights, including the ability to rate their experiences, opt-in or out of marketing campaigns, and enjoy improved return and exchange policies. “The law places consumers at the forefront of the digital economy, ensuring their autonomy and instilling greater confidence in the digital market,” Al Marri stated.
Moreover, Essam Al Tamimi, chairman of Al Tamimi & Company, underlined the law’s importance for the business community. “The new law is broader than conventional e-commerce and extends to various technological avenues. It aims to bolster business and investment activities within the UAE, and it’s vital that businesses comprehend how this law impacts them,” he said.
The Executive Regulations, expected to be released later, will detail penalties, likely focusing on consumer refunds and reconciliation between parties in disputes. This new law, in essence, represents a significant step by the UAE in adapting its legal structure to the evolving digital landscape, thereby fostering a secure and consumer-friendly digital trade environment.
