Ministry of Economy organizes forum to discuss significant of ‘Trade through Modern Technology act’
The Ministry of Economy today organized a forum titled, ‘Trade through Modern Technological Means: Beyond Digital Trade’, in the presence of H.E Abdulla bin Touq Al Marri, Minister of Economy, H.E. Abdullah Ahmed Al Saleh, Undersecretary of the Ministry of Economy, a number of officials, chief executives, and representatives of the Telecommunications and Digital Government Regulatory Authority, Economic Development Departments, and Chambers of Commerce. The event, which was held in collaboration with Al Tamimi & Company, and Lexus Nixis Global, was also attended by several government and private sector institutions, and experts from UNCITRAL.
The Forum discussed recent developments in the economic legislation landscape of the country following the issuance of ‘Federal Decree-Law No. 14 of 2023 on trading by modern technological means’ at the end of last year. This decree-law is designed to strengthen economic policies supportive of the national economy and ensure the provision of top-tier services to both traders and consumers.
H.E. Bin Touq: “The promulgation of the Trade Law through modern technology means marks a qualitative shift towards positioning the UAE as a global hub for the new economy. Through this legislation, the country has set a precedent on the international stage by instituting comprehensive laws governing trade through modern technological means, encompassing eCommerce, digital commerce, and beyond.”
H.E. added: “The law establishes an integrated legislative framework to foster the development of legislative and regulatory environments for all forms of trade enabled by technology. This is in line with the UAE’s objective of leading the world in proactive legislation for emerging economic sectors by the next decade, in accordance with the vision of ‘We the UAE 2031’, thus solidifying the country’s status as a leader in the knowledge and innovation economy.”
H.E. emphasized that the new law supports the preparedness of the country’s economic legislative structure to attract further national and foreign direct investment. “It aims to diversify business activities, ensure the delivery of the best services to traders and consumers, increase employment opportunities in the country, and keep pace with trends in advanced technology. This accordingly will support the UAE’s advancement in global competitiveness metrics like the Global Competitiveness Report and ease of doing business. Moreover, it will accelerate the digital transformation of the economy and enhance the UAE’s position as a hub for business activities in the areas of modern technology and technology,” Bin Touq added.
H.E. Bin Touq noted that the Forum is a great opportunity to raise awareness about the significance of utilizing modern technology in the trade sector, especially artificial intelligence, which is emerging as a burgeoning sector. The event also served as a vital platform to foster dialogue with the business community, various stakeholders, companies, experts, and specialists as well as integrate the law into its appropriate executive framework, strengthening the UAE’s position on the regional and global digital trade map and reaffirming its status as the epicenter of the new economy.
Meanwhile, Lexus Nixis International Data and Analysis Company, which has 10,500 customer service employees in more than 150 countries, said: “Our task forces combine legal and business data with distinctive analyses and methodologies, aiming to revolutionize the business strategies of our clients. We provide them with innovative decision-making and analytical instruments leveraging automated learning, natural language processing, visualization, and artificial intelligence. These are powered by our expansive global legal and news database, recently scrutinized in various company studies and analyses. Furthermore, we conduct exhaustive assessments of emerging laws, furnishing Lexus Nexus and other AI and tech enterprises with robust legal assurances and pathways.”
Emphasizing the significance of commerce through modern means of technology, UNCITRAL Experts said, “This is achieved by creating a secure and lawful environment that prioritizes data protection, consumer rights, and the safety of digital payment systems. The UAE has set a precedent internationally with its registration law concerning commerce through modern means of technology.” The commission extended an invitation to the UAE to attend its upcoming session and review the new legislation.
Advancements of Digital Commerce under the New Law
The Forum featured four sessions that focused on the rise of digital commerce from eCommerce, commerce through modern means of technology, the opportunities and challenges faced by SMEs, and the legal framework governing these aspects through legislation in light of the new law. The discussions also included topics such as data protection mechanisms, consumer rights, digital payment gateways, logistics services, cybersecurity measures, and the role of digital infrastructure in facilitating trade activities through means of modern technologies. Additionally, there was a discussion of aligning the new law with global standards for digital commerce.
Titled ‘The Rise of Digital Commerce from eCommerce’, the first session was moderated by Hassan Al Kilani, Principal Legal Advisor at the Ministry of Economy. The discussion addressed the rise of digital commerce, spanning from eCommerce to the evolving landscape of trading through digital transformation. It emphasized the significant role of the new legislation in bolstering the UAE’s global position. With an advanced business ecosystem supporting both B2B and B2C operations, the UAE ensures smooth functioning and robust cybersecurity measures to safeguard the interests of merchants, consumers, and the broader business community. Additionally, the session discussed the implications of the new law on international trade relations. The UAE is committed to aligning its legislation with international standards and agreements by analyzing global trends and advancements with the assistance of UNCITRAL representatives. The country seeks to implement new technologies to regulate trade activities effectively.
The second session, titled ‘The Legal Framework’, discussed fundamental principles of the law and its key components. It also explained the legal status of digital signatures and contracts, as well as their impact on the advancement of new forms of digital commerce. Meanwhile, the third session, titled ‘Trade through Modern Means of Technology’, focused on the role of technology in creating an optimal environment for digital trade. Additionally, it explored the use of advanced technology in conducting commercial activities and protecting consumer rights. The session also discussed the mechanisms and techniques for resolving disputes in the digital realm, emphasizing the importance of secure digital payment gateways. Lastly, the fourth session, titled ‘Opportunities and Challenges’, explored the significant opportunities and challenges that arise from the advancements in technology-based trade for SMEs.
The forum concludes with a comprehensive discussion attended by legal and business experts, as well as seasoned individuals. Representatives from the United Nations Commission on International Trade Law (UNCITRAL) were also present. During the session, participants discussed various inquiries about legal opinions on the legal implications of the newly enacted law, its potential to enhance the digital trade dynamics, and its alignment with international trade regulations.
The attendance of the United Nations Commission on International Trade Law (UNCITRAL) in the forum holds significant importance, as it serves as a global reference body with universal membership specializing in commercial law reform worldwide for over 50 years. UNCITRAL’s mission revolves around harmonizing rules pertaining to international business, ensuring their compliance and validity in the global commercial market.
Law Provides Special Protection to Consumers and Promotes Trade in the Digital Realm
The law implemented by the UAE last year incorporated various mechanisms to protect consumers and foster a conducive environment for promoting trade through modern means of technology, from eCommerce to digital commerce and beyond. The objective of the law is to create a favorable environment for enhancing commerce through modern means of technology, thereby bolstering the UAE’s national economy. The law introduced a new mechanism that integrates the roles of federal and local authorities involved in all aspects of trade conducted through modern means of technology. This mechanism is supported by flexible legislation, which enables effective participation and ensures its sustainability.
The implementation of the new law empowers relevant authorities to carry out their roles, ensuring the safety and security of trade activities. This includes the Central Bank’s requirements for digital payment gateways, as well as the requirements set forth by the Federal Tax Authority, the Telecommunications and Digital Government Regulatory Authority (TDRA), and federal and local authorities’ requirements of cybersecurity. The law also introduced an optional authority for the integration of supervisory, regulatory, and judicial control operations. It applies to both financial and non-financial free zones in the country.
The law has implemented various measures to ensure secure online shopping for consumers, protect their interests, and empower them with legal means to combat commercial fraud. Additionally, it aims to protect the intellectual property of both local and international products and trademarks. However, it does not impose any new requirements on digital traders.
The law also governs the interaction between the stakeholders involved in the digital commerce process within the UAE. It sets forth the required regulations to ensure compliance with international guidelines and standards. This applies to transactions between merchants (B2B), as well as those between merchants and consumers (B2C). The law aims to regulate the relationship between parties of digital contracts, protect online consumers, and relevant parties. Additionally, it plays a pivotal role in facilitating the conduct of business, facilitating trade and contracts, enhancing their efficiency, reducing the costs of doing business, and enhancing commercial stability in the country.
Last Updated on 9 months by News Desk 1
