Article 19 of the Saudi Electronic Transactions Law
المادة 19 من نظام التعاملات الإلكترونية · الفصل السابع: واجبات مقدم خدمات التصديق ومسؤولياته
A certification services provider may not stop its licensed activity, assign its license or merge into another entity without the Authority's prior written approval, in accordance with the Regulations' procedures.
Official text (Arabic)
This article has not been amended since the law was issued.
لا يجوز لمقدم خدمات التصديق التوقف عن مزاولة نشاطه المرخص به أو التنازل عن الترخيص الصادر له أو الاندماج في جهة أخرى إلا بعد الحصول على موافقة كتابية مسبقة من الهيئة وفقا للإجراءات التي تحددها اللائحة.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 19 explained in plain English
This article protects the stability of certification services and the interests of those who rely on them. It prohibits a certification services provider from three actions without prior permission:
- Stopping its licensed activity.
- Assigning the license issued to it.
- Merging into another entity.
None of these is permitted except after obtaining the Authority's prior written approval (the Communications and Information Technology Authority), and in accordance with the procedures set by the Implementing Regulations. The approval must be in writing and given before the action; notifying the Authority after the fact is not enough.
Why this rule? Because certificate holders and those who rely on their signatures need the service to continue and the certificate records to remain available. For this reason Article 18 requires the provider to hand the information and documents in its possession to the Authority in all cases of suspension of its activity.
Article 20 follows, establishing the provider's responsibility for the validity of the information certified in the certificate. Providers who wish to restructure their business would do well to consult a lawyer specializing in commercial and company matters before taking any step.
Practical example
A company licensed to provide certification services in Riyadh decided to merge with a larger technology company. It may not complete the merger without obtaining the prior written approval of the Communications and Information Technology Authority, in accordance with the Regulations' procedures.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
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Frequently asked questions about Article 19 of the Saudi Electronic Transactions Law
Can a certification services provider stop its activity whenever it wants?
No. It may not stop its licensed activity except after obtaining the Authority's prior written approval.
Can a certification services license be assigned to another company?
The license may not be assigned except with the Authority's prior written approval, in accordance with the procedures set by the Regulations.
Does a certification services provider need approval to merge?
Yes. Merging into another entity requires the Authority's prior written approval.
More articles on Certification Services and Digital Certificates
- Article 15
The article divides oversight of the Law: the Ministry sets policies and plans and represents the Kingdom; the Authority applies the Law, licenses and monitors certification services providers, and sets the fee with the Minister's approval.
يتم الإشراف على تطبيق أحكام هذا النظام وفقا للآتي: 1 - تقوم الوزارة بوضع السياسات العامة ورسم الخطط والبرامج التطويرية للتعاملات والتواقيع الإلكترونية ، ورفع مش
- Article 16
The article establishes a National Center for Digital Certification in the Ministry to oversee the tasks of issuing and managing digital certification certificates, and refers the details of its seat, composition and competences to the Regulations.
1- ينشأ في الوزارة - بموجب هذا النظام - مركز وطني للتصديق الرقمي، يتولى الإشراف على المهمات المتعلقة بإصدار شهادات التصديق الرقمي وإداراتها. 2- تحدد اللائحة الق
- Article 17
The National Center for Digital Certification is competent to approve digital certification certificates issued by foreign bodies, which are treated like their domestic counterparts in accordance with the Regulations' controls and procedures.
يختص المركز باعتماد شهادات التصديق الرقمي الصادرة من الجهات الأجنبية خارج المملكة وتعامل هذه الشهادات معاملة نظيراتها بداخل المملكة، وذلك وفقا للضوابط والإجراءا
- Article 18
The article lists eight obligations of a certification services provider, including prior licensing, issuing and protecting certificates, an accessible database, confidentiality, and handing documents to the Authority when its activity stops.
يجب على مقدم خدمات التصديق الالتزام بما يأتي: 1 - الحصول على الترخيص اللازم من الهيئة قبل البدء في ممارسة نشاطه. 2 - إصدار شهادات التصديق الرقمي ، وتسليمها وحفظ
- Article 20
A certification services provider guarantees the validity of the certified information in the certificate at the time of delivery and the validity of the link between the holder and their electronic data, and is liable for harm to anyone who relied on it in good faith.
يتحمل مقدم خدمات التصديق مسؤولية ضمان صحة المعلومات المصدقة التي تضمنتها الشهادة وقت تسليمها وصحة العلاقة بين صاحب الشهادة وبياناتها الإلكترونية، وتقع عليه مسؤو
- Article 21
A certification services provider must revoke or suspend a certificate at its holder's request or in the cases the Regulations set, notify the holder immediately and lift the measure when its cause ends, and is liable for harm to good-faith persons.
يجب على مقدم خدمات التصديق إلغاء الشهادة أو إيقاف العمل بها عند طلب صاحبها ذلك أو في الحالات التي تحددها اللائحة. كما يجب عليه إبلاغ صاحب الشهادة فورا بالإلغاء
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.