Legality of eSignatures in Egypt

Background

Electronic signatures are rapidly transforming the document authentication landscape in Egypt and globally by introducing efficient and environmentally conscious solutions. The shift to paperless workflows and secure transactions with reduced bureaucracy has led to faster service delivery and the timely closure of various deals, agreements, and contracts. Nonetheless, it is crucial to grasp the key factors when implementing electronic signatures in Egypt.

Users should choose an electronic signature service that complies with Egyptian Decrees and statutes, particularly the Decree of the Minister of Communications and Information Technology No. 109 of 2005 Issuing the Executive Directive of Law No. 15/2004 on eSignature and Establishment of the Information Technology Industry Development Authority (ITIDA). Statutory compliant electronic digital signature is admissible in courts and cannot be denied legal validity. However, some documents may need a wet-ink signature, and legal requirements vary by location.

Ensuring the security of electronic signatures is paramount. The chosen eSignature provider should offer robust security measures, including encryption, user authentication, and an audit trail, to safeguard against unauthorized access and ensure the integrity of the documents. Services such as BoldSign provide these security assurances, helping users meet compliance and security standards.

Although electronic signatures are advantageous and widely accepted, adherence to legal regulations, ensuring security, and choosing an easy-to-use service are essential for successful deployment in Egypt.

What is an electronic signature

In Egypt, an electronic signature (eSignature) is what is placed on an e-document and takes the shape of letters, numbers, characters, signs, or other symbols, besides having an exclusive feature that allows identifying the signing person and distinguishes them from others. These signatures are legally valid for many documents as long as there is a clear connection between the person signing and verifying the signature’s authenticity, safeguarding against any unauthorized changes. The signing process must demonstrate a clear intention to agree to the terms specified in the document. If these criteria are satisfied, electronic signatures are considered legally on par with wet-ink signatures, though some exceptions apply.

Forms of electronic signature

An eSignature is any electronic mark linked to an electronic document or process. This includes:

• Logging into an app to authorize actions
• Handwriting a signature on a tablet
• Typing a name in an email
• Clicking an acknowledgment on a website after authentication
• Attaching a scanned handwritten signature
• Using a voice command as a verbal agreement

Overview of eSignature regulations in Egypt

Electronic signatures shall have the same evidentiary authority as writing and official or private documents in administrative, commercial, and civil operations, provided that they meet the conditions stipulated in electronic signature regulations and Executive Regulations.¹

The use of electronic signatures in Egypt is regulated by:

• Decree of the Minister of Communications and Information Technology No. 109 of 2005 issuing the Executive Directive of Law No. 15/2004 on eSignature and Establishment of the Information Technology Industry Development Authority (ITIDA)
• Law No. 15 of 2004 Concerning the Regulation of Electronic Signature and the Establishment of the Information Technology Industry Development Authority

Law No. 15 of 2004 provides that digital signatures, electronic writing, and electronic documents shall be deemed valid and admissible in evidence if the following conditions are met:²

• The electronic signature is uniquely linked to the signatory.
• The signatory has sole control over the electronic device used for creating the signature.
• Any alteration or modification to the data of the electronic document or the electronic signature can be detected.

Decree of the Minister of Communications and Information Technology No. 109 of 2005 further reinstates that the system of forming the eSignature creation data shall be secured once it fulfills the following:³

• The eSignature creation data is exclusively controlled by the signer
• The eSignature creation data remains secret
• It is impossible to deduce the eSignature creation data
• The eSignature is protected against forgery, copying, alteration, or being created by anyone other than the signer.
• The signing process does not damage or change the content or meaning of the e-document.
• The system shall not prevent the signer from fully learning all about the content of the e-document before signing it.

Electronic Certification Entities are tasked with issuing electronic authentication certificates and providing services related to electronic signatures.

The Information Technology Industry Development Agency (ITIDA) is the supreme electronic certification authority in the Arab Republic of Egypt, and shall issue root cryptographic keys to entities licensed to issue electronic certification certificates. Prior to granting a license to issue certification certificates, the Authority shall verify that the licensee’s system for generating signature-creation data is secure pursuant to Decree No. 9 of 2005 and includes the technical standards, systems, and rules set out by the Law. Upon the grant of the license and throughout its validity, the system shall be deemed secure and effective unless proven otherwise.

Recognition of foreign electronic signatures in Egypt

The ITIDA shall issue an Accreditation Certificate for Foreign Electronic Certification Entities, which authorizes the entities to issue electronic authentication certificates and recognizes such certificates as equivalent to those issued within the Arab Republic of Egypt.

Accreditation is granted after the organization (or interested parties) submits an application using the Authority’s official forms. In cases involving international treaties or agreements with foreign licensing authorities, the Authority may also grant accreditation on its own initiative. However, the Authority approves foreign organizations to issue electronic certification certificates in the following cases:

• The foreign organization follows rules and requirements that are the same as those required by the Authority for licensed entities in Egypt.
• The foreign organization has an agent in Egypt who is licensed by the Authority, fully capable of handling certificates, and guarantees the certificates issued by the foreign organization.
• The foreign organization is recognized under an international treaty that Egypt has agreed to, allowing it to issue certificates.
• The foreign organization is licensed to issue certificates in its own country, and there is an agreement between that country’s licensing authority and Egypt’s Authority.

The scope and limitations of eSignature transactions in Egypt

The validity of electronic signatures depends on the type of document, rendering them appropriate for certain transactions while unsuitable for others. The following is an analysis accompanied by a table summarizing these transactions.

Documents that can be signed electronically

Electronic signatures can be employed to affix signatures and provide countersignatures on a diverse array of documents, such as:

• Human resources
• Procurement
• Non-disclosure agreements (assuming they are contracts, not formal deeds)
• Public petitions
• Internal correspondences
• Software license agreements
• Educational field
• Offer letters, etc.

Exempted transactions

The regulatory framework in Egypt does not explicitly specify the types of transactions that are not permissible to be finalized with electronic signatures. Nevertheless, it is advisable to exercise caution when engaging in transactions such as:

Nevertheless, it is advisable to exercise caution when engaging in transactions such as:

• Wills, codicils, and inheritance settlements
• Family law documents, such as marriage, divorce, and adoption documents.
• Real estate transactions
• Certain government and regulatory filings
• Power of attorney
• Negotiable instruments

Summary analysis

Electronic signature validity and authenticity

To ensure the authenticity of an eSignature, it is advisable to follow these best practices while also complying with all applicable legal requirements:

• Ascertain the identity of the signatory and, for transactions involving companies, verify that the individual is duly empowered to bind the corporation with their signature.
• Secure explicit agreement from the signatory, which may be incorporated in the contract or a separate consent form, recognizing their intention to use the specified electronic signature method for the document.
• Protect the document from any changes after the electronic signature has been affixed.
• Keep a comprehensive log of the signing process, recording each step taken by the individual signing.

How does BoldSign help

The following elements of compliance available within BoldSign can be used to comply with Egyptian eSignature laws:

• Secure and unique signing link: A secure and unique link to sign a document is sent directly to the signer's email address. This ensures that the document is only accessed by the intended signer and cannot be tampered with.
• Password protection: Senders can specify a password that needs to be entered before viewing and signing a document. This adds another layer of security to the signing process.
• Audit trail: The IP address of the signer and timestamps for all significant events in the signing process are recorded in an audit trail. This provides a record of who signed the document, when, and where.
• Digital signature: The final document is digitally signed with an AATL-compliant certificate. This ensures that the document cannot be tampered with without invalidating the signature.
• Consent: Signers are asked to confirm their intent to sign electronically and informed that they could opt out. This ensures that the signer is aware of the implications of signing electronically and has given their consent.
• Custom terms: Get your signers to agree to a custom set of terms. This can be useful to ensure additional security or that the signer understands the terms of the document.

Disclaimer: The information on this page is intended to help businesses understand the legal framework of electronic signatures for this particular country.

However, Syncfusion’s officers, directors, stockholders, affiliates, attorneys, accountants, employees, or agents cannot provide legal advice. You should consult your personal attorney regarding your specific legal questions. Laws and regulations are subject to frequent changes, and the information may not be current or accurate. To the maximum extent permitted by law, Syncfusion provides this material on an “as-is” basis. Syncfusion disclaims and makes no representation or warranty of any kind with respect to this material, express, implied, or statutory, including representations, guarantees, or warranties of merchantability, fitness for a particular purpose, or accuracy.

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