E-Signature
Synonyms: Electronic Signature، Digital Signature، E-Sign، Electronic Approval
Last updated: 2026-09-25
Short Definition
An electronic signature is electronic data included in or linked to an electronic transaction, used to establish the signatory's identity and consent to its content; in Saudi Arabia it has the legal effect of a handwritten signature when it meets the conditions of the Electronic Transactions Law.
Overview
Legal Basis
Electronic signatures are governed by the Electronic Transactions Law issued by Royal Decree No. M/18 dated 8/3/1428H, as amended by Council of Ministers Decision No. 293 dated 9/4/1445H, which made the Digital Government Authority the ‘Authority’ under the law; its amended Article 3 excludes transactions relating to personal status and the issuance of deeds for real estate dispositions unless the responsible authority permits them electronically under controls set in agreement with the Digital Government Authority. Leases are documented electronically on the Ejar platform, supervised by REGA.
Practical Example
A landlord living in Jeddah leases his Riyadh flat to a tenant there on a two-year contract. The lease is created on Ejar and each party approves its terms electronically after identity verification through Nafath, without meeting; the documentation fee is SAR 125 per contract year, SAR 250 in total. In a separate deal, the same landlord e-signs an agreement to sell land for SAR 800,000; the agreement proves both parties' commitment, but ownership passes only when the deed is conveyed and the disposition recorded in the official systems.
Common Mistakes
- ✗Believing that e-signing a sale agreement transfers property ownership without conveying the deed and officially recording the disposition.
- ✗Signing a lease as a PDF outside Ejar and relying on it, so the residential lease loses its status as an executive instrument.
- ✗Sending your verification code or Nafath credentials to someone else to approve on your behalf, which weakens proof of consent and exposes you to fraud.
- ✗Using a scanned image of a handwritten signature as if it were a reliable electronic signature.
- ✗Not keeping a copy of the e-signed contract and the record and date of approval.
International Differences
Most countries recognise electronic signatures with similar exceptions for real estate dispositions: in Turkey they are governed by Electronic Signature Law No. 5070 while property transfers still go through land-registry directorates; in the UAE electronic-transactions laws recognise them with special procedures for property registration; and in the EU the eIDAS Regulation sets graded levels. The Saudi model stands out in embedding electronic approval of leases in a single government platform (Ejar) with unified national identity verification (Nafath).
