New law offers safety net, legal framework for e-transactions
Muscat: His Majesty Sultan Haitham bin Tarik last week issued Royal Decree 39/2025 that promulgated the Electronic Transactions Law, which ensures that the law keeps pace with developments, including a legal framework for electronic signatures and contracts.
The law also stipulated that the Minister of Transport, Communications and Information Technology shall issue the Executive Regulation of the law attached to this Decree, as well as the decisions necessary for the implementation of its provisions.
The law came into effect on April 14, 2025, following its publication in the gazette.
The law stipulates that the provisions of this law shall apply to electronic transactions, documents, signatures, and trust services.
The provisions of this law shall not prejudice the independence of the Central Bank of Oman in conducting its operations and regulating the operations of licensed banks and financial institutions subject to its supervision and oversight, nor the confidentiality of information and data related to such entities, nor access to their systems.
A committee called the 'Trust Services Management Committee' shall be established in the field of transportation, communications, and information technology. It shall consist of a chairman and some experienced members, who will be responsible for adopting controls and procedures related to the provision of trust services, especially trust services provided to persons with disabilities, in a manner consistent with their needs.
Electronic Transactions
An electronic document is considered written and produces legal effects if it meets the legal requirements. It is considered an original if its content can be displayed and its technical integrity can be verified. It is also accepted as evidence even if it is not in its original form, provided it is the best available evidence to an acceptable degree.
The electronic document shall be deemed to have been sent from the place where the originator's place of business is located and received at the place where the addressee's place of business is located. If the originator or addressee has more than one place of business, the place with the closest relationship to the electronic transaction in question shall be deemed to be the place of business. If it is not possible to determine that place, the principal place of business shall be deemed to be the place of business. If the originator or addressee does not have a place of business, or if there is no specific transaction between them, the place of usual residence shall be deemed to be the place of business.
In all cases, the originator and the addressee may agree otherwise.
Electronic signature
A simple electronic signature shall have evidential value if it meets the provisions stipulated in this law, and any interested party may prove by any means that this signature is reliable.
An advanced and certified electronic signature has stronger authority if it provides uniqueness, change detection, and associated data integrity.
Electronic contracts
For contracting purposes, the expression of offer and acceptance may be made in whole or in part by electronic means, and such expression shall be binding on all parties when signed electronically, under the provisions of this Law, the Regulations, and the decisions issued in implementation of its provisions.
A contract may be concluded between automated electronic media that are prepared and programmed in advance to do so. It may also be concluded between an automated electronic mediator owned by a natural or legal person, and a natural or legal person if the person knows or is supposed to know that he is dealing with an automated electronic mediator that will undertake the task of concluding or executing the contract.
The regulations specify the conditions that must be met by the automated electronic medium, and electronic contracts concluded under the provisions of this law shall have the same legal effects as contracts concluded by ordinary methods, in terms of proof, validity, enforceability, and other provisions.
The Mediator
The intermediary shall not be liable, civilly or criminally, for any information or data contained in the form of an electronic document belonging to a third party, if he is not the source of such information or data and his role is limited to providing access to the electronic document.
Providing access to any information belonging to others, in the application of the provisions of this Article, means providing technical means that enable access to information contained in the form of an electronic document belonging to others, or broadcasting it, or simply increasing the effectiveness of the broadcast. This includes the automatic, interim, or temporary preservation of this information to enable access to it.
Trust Services
The law details recognized trust services, such as issuing electronic authentication certificates, electronic signatures, identity verification, and electronic delivery.
- It requires a license to provide these services, and requires prior approval from the Ministry when discontinuing or relinquishing them.
The service provider is obligated to protect data and maintain confidentiality, and is responsible for the accuracy of the information.
Penalties
The law stipulates criminal penalties of up to five years in prison and fines of up to RO50,000 for those who violate the law, such as providing trust services without a license, exploiting data without permission, or forging authentication certificates.
It also stipulates that the legal person shall be punished if the violation is committed in its name, and that the devices used in the crime shall be confiscated, with the possibility of imposing additional administrative penalties.
Whoever commits the following shall be punished by imprisonment for not less than one year and not more than three years, and a fine of not less than RO5,000 and not more than RO20,000 or by either of these two penalties if tinformation is collected about the applicant for an electronic authentication certificate for purposes other than trust services and without obtaining the written consent of its holder.
If anyone divulges information or data related to an electronic authentication certificate without obtaining the written consent of the holder of the electronic authentication certificate.
If anyone publishes a forged or incorrect electronic authentication certificate or cancels or suspends it, or makes it available to another person knowing of its condition.
Anyone who provides trust services without a license or provides misleading data or information to the Ministry to obtain a trust services license.
Without prejudice to the rights of third parties in good faith, the competent court shall, in all cases, rule to confiscate the devices, tools, programs, and other items used in committing any of the crimes stipulated in this law, as well as the funds obtained from them.
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