Electronic Transactions Act of Oman: a review

In a move towards creating a suitable environment for transactions electronic safe, the Sultanate of Oman has issued the message system of finance granted by Royal Decree 69/2008.

This is the first law legalize electronic transactions in Oman which can be defined as any contract, agreement or communication in this regard, wholly or partially by electronic means as electronic messages.

The formulation of this law begins a new era for Oman, where a true e-enabled society evolves in the realization of digital society of the Sultanate. This is an important milestone in implementing the national IT strategy by the Authority of Information Technology (ITA) of Oman.

The e-transactions law consists of nine sections, combining 54 articles, developed and perfected over a period of three years. ITA, together with government agencies and some private law firm have made this law based on studies of the United Nations Commission on International Trade Law (UNCITRAL), Organization for Economic Cooperation and Development (OECD) on the Protection of Privacy and Transborder Flows of Personal Data and address of the laws of various countries like USA, Europe, France, Ireland, Malaysia and Tunisia.

The e-transactions law of Oman legalizes the use of electronic digital commerce and communications through letters, emails, etc organizations wishing to introduce digital signatures for use must be approved by the Authority of Information Technology through a formal process.

Dr. Salim Al Ruzaiqi, CEO of Information Technology Authority (ITA) has noted that one of the main purposes of this Act is to facilitate electronic transactions, which are vital for e-government and e-commerce applications in Oman. To support such transactions, any contract, agreement or communication by electronic means as electronic messages is considered legally valid through this law. It regulates the transfer of electronic data and messages through various electronic channels like the Internet and changes data control.

To create the regulatory environment, the law has severe penalties for any misuse of electronic systems, applications and data residing on them by punishing criminal acts using electronic systems and data like hacking into computer systems without authorization to capture or manipulation of data, etc.

ITA is saying that through this law is to strengthen public confidence in the safe use e-transaction, messages and records while ensuring adequate protection of data privacy of individuals involved in such electronic transactions.

Promotion of this law establishes the uniform rules, regulations, and standards for authentication of electronic messages and records. By building confidence and security, strengthen the development of e-operation at national level, the Gulf and Arab rule by using the
electronic signatures and electronic transactions. The use of electronic signatures in electronic commerce, establishing a common legal framework for electronic authentication over the Internet or other electronic media. Also play a key role in the formation of contracts, conducting business, assisting people work together in cooperative and support many forms of electronic collaboration.

As a general law that gives credibility to the exchange of electronic information, while that the issue of information and communication security to higher levels of integrity, authentication and privacy.

The law provides for encryption as a means to protect electronic transactions to ensure confidentiality of the information or message data to verify the originator and prevent others messages to no information or data to reach the addressee or to corrupt them.

Government agencies can now use electronic documents and digital signatures tendering systems; processing license applications and tax systems can also accept fees or payments electronically.

Adequate privacy protection in matters related to personal data held by the systems and processes to enable electronic transactions is guaranteed by the new e-transactions law of Oman. The law remains responsible for protecting electronic systems and data on the entities operating such electronic systems and the authorized entity that issues the digital signature invalid.

The regulations and decisions necessary for the law, which shall enter into force three months after its publication in the Gazette, may be issued by the Minister of Trade and Industry.

About the Author

BA.L, LL.B (Kerala), LL.M (Cochin). Five years experience as Legal consultant in India and Sultanate of Oman. Published several articles in leading law journals.

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