With the legalities in Egypt already in place, signing your name online is becoming a reality -- with great economic potential. Pierre Loza reports The Information Technology Development Agency (ITIDA) issued four licences last week to Security and Network Services (SNS), Egypt Trust, Advanced Computer Technology (ACT) and Misr for Central Clearing, Depository and Registry (MCDR) for the launch of e-signature solutions on the Egyptian market. In a conference inaugurating the issuance, a memorandum of understanding was signed between ITIDA and the Cairo Regional Centre for International Arbitration (CRCIA). The memorandum is thought to focus on the development of e-commerce dispute settlement mechanisms, by means of which electronic signing will be the primary means of validating legal consent. The event which was jointly organised by the United States Department of Commerce and ITIDA was also linked to another conference in Alexandria, via video conferencing. A major need highlighted by conference participants in Cairo and Alexandria was the creation of specialised courts to tackle e- commerce dispute settlements and authentication issues. Deputy General Counsel of the US Department of Commerce, David Bearden commended the Egyptian government's efforts to integrate Egyptian businesses into global e-commerce. This started with the issuance of the e-signature law in 2004. "Development of e-commerce increases a country's ability to promote innovation. [This] leads to increased productivity, which in turn leads to greater competitiveness, leading to a vibrant growing economy," Bearden said. ITIDA CEO Mohamed Omran also cited cooperation between the Ministry of Finance and the Ministry of Managerial Development, as well as ITIDA to incorporate e-signatures into the administrative public domain. "People need to know that it is taking us so long to implement, because this sort of project must be done under the highest levels of secrecy. There is only one original encryption that will authenticate electronic signatures in Egypt. Any leak of information can result in the collapse of the whole system, jeopardising the market as a whole," Omran said. With the Middle East displaying some of the highest growth rates in e-commerce, US Deputy Chief of Mission Stuart Jones voiced the need for greater security, coupled with a culture of trust in the system. "People still do not have enough trust in the Internet, due to viruses, spam, and other security problems. The lack of trust jeopardises business operations and commercial transactions. As a result [of this], the potential for economic growth made possible by the information super highway is at risk," said Jones. Prospects for high-paying technology-based jobs, as well as American access to Egyptian products were among the benefits which Jones mentioned. Egypt's Minister of Communication and Information Technology Tareq Kamel also described the licensing as a start of the "institutionalisation of e-signatures into Egyptian society". According to Kamel, the "real challenge is related to integrating Egypt into the global arena." Taking numerous forms and levels of security, an e-signature is usually done by means of a smart card that allows you to validate your consent on documents. Authentication is done by means of a secret pin number. When a deal is contracted between users from foreign countries, a situation occurs by which different authentication authorities regulate the system. This process is called "cross recognition". Sherif Noureddin, ITIDA's Information Security Systems consultant believes that the process which was stipulated in the 2004 law is quite straightforward. "For example, if I want to make a transaction and buy something electronically from a German firm, all I need is that the Higher Certification Authority in Egypt signs an agreement with its German counterpart. This will allow for electronic transactions between the two countries," said Noureddin. There are still questions about how a government body like the Customs Authority will deal with e-signatures. The backbone infrastructure of such a large government entity must be aptly prepared to integrate the new technology. SNS was among the firms that were granted licences. Its vice-president of operations, Ahmed Yasser, said his firm has already begun delivering its services to banks such as the Commercial International Bank (CIB). "We started working with the CIB in mid-2005, by providing PKI [public key infrastructure] solutions on four application zones. These are internal banking uses, Internet banking, corporate clients, and pay roll recipients," Yasser said. PKI is a large framework which specifies how to handle digital certificates (smart cards which permit electronic signing). It systemises the process in which they are issued, and stipulates the managerial steps to be taken under any possible scenario, such as being lost as one example. Before actually issuing the smart cards for the bank's users, SNS began by systematically testing the system's weaknesses, so as to devise the solutions necessary for its protection from hackers. "We worked with Microsoft's Certificate Service, and we developed the system further into a Certificate Authority by adding our own software and integrating it," added Yasser. SNS will soon export its original solution to the Government of Bahrain as part of its e- government initiative. At the heart of SNS's operation is the Data Centre. This is located in the company's headquarters and protected by seven layers of anti-explosive walls, motion sensors, and fingerprint verification access. This is the backbone of any electronic certificate firm. The company is also equipped with a call centre. This is a severely restricted area which gives customer service, as well as the actual encryption devices and root encryptions used by the regulatory authority. "We've also developed cards which allow access in both the public and private domains. In other words, you can access a government website and get some documents renewed. Then, with the same card, you can access your bank account," said Yasser. SNS president and CEO, Amr Ragaai, was keen on highlighting the potential of electronic signatures especially within Egyptian society. "Due to the explosion of bank patron numbers, banks have one of two alternatives. They can build new branches, which is quite costly, or they can offer their services on the Internet," Ragaai said. Given the long cues on banking counters and the usually scarce parking spaces, Ragaai believes he can deliver a much-needed product to Egyptian consumers. For the service to have the market impact he desires, Ragaai says the toughest problem was finding the right business model which will suit the Egyptian market. A former licensee of an American e-certification firm, Ragaai believes that depending on the technology of others forces you to work with a much higher cost than is necessary. "We understood the core of the system, and believed we could develop our own solution. By doing so and developing our distinctly Egyptian solution under our name, we were able to offer the service at a much lower price," Ragaai said. He added that in a country where red tape is a major inefficiency, e-signatures can "do wonders" in easing the plight of an ailing bureaucracy. Preparing the backbone infrastructure at the Ministry of Managerial Development for the integration of smart cards is still in progress. Ragaai assesses that in two years' time, a large portion of Egyptian public services will be available online. "Getting an original copy of your birth certificate within 48 hours is possible today online, but how many people know about that?" he questioned. The stock market is another dynamic sector where e-signing can have a significant impact. "Today, in order to buy stocks, you either sign empty documents for your broker, or use the phone or fax. These methods are inefficient. This is why we have more than 60,000 court cases today related to stock market disputes," he said. The introduction of electronic signatures to the stock exchange is expected to accelerate the rate at which stock orders are made. Precisely verifying the actions undertaken by the parties involved will also be made possible.
