Oman Enacts New Electronic Transactions Law – Royal Decree No. 39/2025

We would like to highlight the issuance of Royal Decree No. 39/2025, promulgating a new Electronic Transactions Law in the Sultanate of Oman. The Decree repeals the earlier framework established under Royal Decree No. 69/2008. The new law represents a significant step forward in modernizing Oman’s legal infrastructure to better align with technological developments and international best practices. One of the most notable changes is the transfer of regulatory oversight from the Information Technology Authority to the Ministry of Transport, Communications, and Information Technology, which is now tasked with issuing executive regulations and decisions to implement the law.

The 2025 Law introduces a more robust legal framework aimed at strengthening trust in electronic services, clarifying the responsibilities of trust service providers and intermediaries, and enhancing the legal certainty surrounding digital signatures and contracts. The new legislation is structured into seven chapters and 37 articles, compared to the nine chapters and 54 articles of the 2008 law, reflecting a streamlined and updated approach to electronic transaction regulation.

In addition to modernizing and updating key definitions, the new law expands the scope of regulation beyond electronic records and signatures to include trust services, electronic identity systems, and the responsibilities of intermediaries involved in digital transactions. It also introduces clearer provisions on licensing requirements, compliance mechanisms, and the use of advanced technologies such as cryptographic tools to ensure authenticity, confidentiality, and legal reliability.

The range of government activities that can be conducted electronically is expanded under the new law, introducing new standards for the use of electronic records and signatures by the government.

The new law also introduces stricter penalties for non-compliance, with fines reaching up to OMR 50,000 and imprisonment of up to five years for serious violations. This marks a notable increase compared to the 2008 law, highlighting Oman’s commitment to fostering a secure and trusted digital environment in support of its national digital transformation objectives.

Importantly, the Decree expressly repeals the 2008 Electronic Transactions Law and any provisions that conflict with the new framework, ensuring legal coherence moving forward. The new law was issued on 9 April 2025 and was published in the Omani Official Gazette this week. It entered into force the day following its publication (i.e., 14 April 2025).

This development is expected to bring legal clarity to digital dealings and promote a secure, enabling environment for e-commerce and innovation in Oman. Businesses operating in Oman or engaging in digital transactions in the region are advised to assess their current practices and ensure alignment with the updated legal requirements.