In a step toward creating an environment for secure electronic transactions, the Sultanate of Oman issued E-Transactions Act formalized by the Royal Decree 69/2008. This is the first law legalizing electronic transactions in Oman, which can be defined as any contract, agreement or notice of it to be fully or partially implemented by electronic means as electronic messages. Formulation of this law begins new era for Oman, where it is truly e-enabled society evolves in the realization of the digital society Sultanate. It is a major step in implementing the national IT strategy by the Information Technology Authority (ITA) of Oman. E-transactions law consists of nine parts, and includes 54 articles, developed and refined over a period of three years. UN, along with several other government bodies and private law firms have prepared the legislation for the study of the United Nations Commission on International Trade Law (UNCITRAL), the Organization for Economic Cooperation and Development (OECD) Guidelines for the protection of privacy and transborder flow of personal data and e-laws of several countries such as USA, Europe, France, Ireland, Malaysia and Tunisia. E-Transaction Law Oman legalises use of digital signatures in electronic commerce and communication through letters, email, and other organizations wishing to introduce digital signatures for their use must be approved by the Information Technology Authority through a formal process. Dr. Salim Al Ruzaiqi, executive director of Information Technology (ITA), said one of the main objectives of this law is to enable electronic transactions, which are vital for e-government and e-commerce applications in Oman. In order to support such a transaction, any contract, agreement or communication is done electronically, as e-mails are considered legally valid by law. It regulates the transfer of electronic data and messages through various electronic channels such as the Internet and control changes in the data. To create a regulatory environment, the law has strict penalties for those misusing electronic systems, applications and data residing in them, punish crimes using electronic systems and data, as well as hacking into computer systems, unauthorized entry or tampering of data, etc. UN, said that through this law is to strengthen public confidence in the safe use of e-transaction, messages and records while ensuring adequate protection of the privacy of individuals involved in such e-transactions. Promotion of this law sets uniform rules, regulations and standards for authenticating electronic messages and records. By building trust and confidence, it will increase the development of e-transaction, at the national, Arab and Persian Gulf area by using the electronic signature and e-transactions. Using electronic signatures in electronic commerce identify common legal framework for electronic check via the Internet or other electronic media. She also will play a key role in shaping the contract to do business, helping people to work together co-operative support and many forms of electronic collaboration. As a comprehensive law gives credibility to the electronic exchange of information, taking the issue of information and communication security to a higher level of authenticity, integrity and privacy. The law provides for encryption as a means to protect e-transactions to ensure confidentiality of data or message information to check the driver and to prevent others from obtaining information or data messages so as not to recipients or corrupt. Government entities can now use electronic records and digital signatures in the tender system, license and tax processing systems also can not accept any fees or payments electronically. Privacy appropriate on matters related to personal data held on computer systems and processes, to enable secure electronic transactions, a new e-transaction law of Oman. Law rests on the responsibility to protect electronic systems and information for people who manage these electronic systems and authorized the issuance of a valid digital signature. Necessary regulations and decisions of the law which will enter into force three months after its publication in the Government Gazette, to be issued by the Minister of Trade and Industry.