Bahrain creates history as the first nation to enact UNCITRAL Model Law on Electronic Transferable Records (MLETR), developed by the United Nations Commission on International Trade Law (UNCITRAL).
The move is part of a series of sweeping reforms aimed at bolstering the digital readiness of the GGC region’s $1.5 trillion economy.
In strategic cooperation with the UNCITRAL Secretariat, Bahrain also revised its existing Electronic Transactions Law with new provisions that align with the United Nations Convention on the Use of Electronic Communications in International Contracts and renamed it the Electronic Communications and Transactions Law.
A 2018 report by KPMG titled “The Cost of Doing Business in the GCC” in the ICT sector recognized Bahrain as having the most liberalized and competitive ICT sector in the region with the lowest costs for critical metrics, such as cross-border Internet connectivity. The overall benefits of the legislation include:
- Electronic Transferable Records Law – introduces electronic transferable records that are functionally equivalent to commercial documents and instruments issued on paper, such as bills of lading, bills of exchange, cheques, promissory notes, and warehouse receipts. These electronic documents allow the person who holds them to claim payment of a sum of money or delivery of certain goods, enabling the merger of the finance and logistics supply chains in a single data workflow.
- Electronic Communications and Transactions Law – updates the current electronic transactions law and promotes wider use of electronic communications in business.
Khalid Al-Rumaihi, chief executive of the Bahrain Economic Development Board (EDB), said: “Bahrain continues to lead the way in digital reforms. The latest achievement of being the first country in the world to adopt the UNCITRAL Model Law on Electronic Transferable Records gives us an unrivaled advantage in the GCC region.”
The new laws are a key step forward in achieving the Bahrain Vision 2030 and the Economic Vision 2030 for Bahrain.”
Source Credit: Albawaba