UAE inheritance laws: Dubai judge answers your questions


Salam Al Amir
  • English
  • Arabic

Sweeping legal reforms introduced in the UAE have paved the way for expatriates to draw up wills based on laws in their home countries.

The key changes to inheritance rules — brought into force in September 2020 — were part of wider changes to personal status laws aimed at encouraging more people to lay down roots in the Emirates and to bolster foreign investment.

Previously, assets would be automatically divided under Islamic law, or Sharia.

A Dubai court set up to examine inheritance disputes involving both Muslims and non-Muslims was established in September and has already dealt with 16 cases involving assets of close to Dh1 billion.

Judge Mohammed Al Shamsi, who is president of the court, urged people to seek legal advice before drafting wills and to make sure their intent is clear to avoid problems arising down the line.

“The clearer a will is, the faster and less complicated its implementation will be,” he said.

Verdicts by this court are issued by a panel made up of a judge from the court of first instance, another from the appeals court and a third from the court of cessation.

As all three levels of the emirate's judiciary system are represented, verdicts are considered final when passed.

Dubai's new inheritance court opened in September. Photo: Dubai Courts.
Dubai's new inheritance court opened in September. Photo: Dubai Courts.

This is in line with, for example, criminal rulings which must be approved by all three of the above courts before they are binding.

“This is to ensure all inheritance cases and cases that relate to them or may arise from them go through the three levels of courts before one judiciary body in a time frame that we hope will not exceed a maximum of one year,” Mr Al Shamsi said.

During an interview with The National, Mr Al Shamsi answered the most pressing questions the court receives about its powers and execution of the law.

Can non-Muslims use the laws of their home countries when executing a will?

They can do so and can actually request to implement any law of any country based on article 17 of the civil law. The law has been modified by Federal Decree-Law number 30 of the year 2020 which came into effect on September 30, 2020.

However, they need to submit justifications for their choice of the law and a legal translation of its last updated version.

If beneficiaries request different laws to be implemented, we call this ‘clash of laws’ and we request applicants to each provide the updated law and the legal base for their requests.

If the will didn’t mention which law to be implemented, we implement the UAE’s law.

What forms of wills are recognised by UAE law?

There are two types, one that dedicates a portion of the inheritance to a person, but does not name other heirs. In this case beneficiaries must issue an inventory which can be requested online and issued in one day.

An example of this is when a man leaves 20 per cent of his cash to his wife or assigns the management of his company to one son but doesn’t mention the rest of his assets or other beneficiaries.

Another type is one that details all assets, beneficiaries and their shares and this doesn't require an inventory certificate.

Both types can be processed rapidly if beneficiaries are in agreement to their content.

In case a will was verbal and was denied by any of the beneficiaries, they will need to lodge a case.

Where can wills be registered?

At DIFC Courts and Dubai Courts’ notary public.

Does the court recognise wills issued from other countries?

Wills issued from outside the country will be recognised by our court but must be translated into Arabic, attested and notarised by relevant authorities in the UAE.

When will a foreign law not be implemented?

If the inheritance includes real estate units inside the UAE, in this case UAE’s law will be implemented, and if the foreign law allows for the implementation of an article in the will that violates the UAE’s principles.

Why do some cases take a long time?

While opening a case file takes only two days, the actual period of legal proceedings can take much longer due to many factors such as the number of beneficiaries.

In all the cases we are looking into there are more than 12 or 14 members.

Another factor is corresponding with establishments such as the deceased’s employer, if any, land departments, banks, public departments in the emirate and the country. This is done to inquire about the deceased’s assets, entitlements and debts.

Also, cases involving wills that are not clear or lack legal elements take longer.

I advise residents to seek help from inheritance lawyers to make sure their wills are accurate and clear, which will help implement them faster.

How can procedures be expedited?

Dubai Inheritance Court allows heirs to personally contact involved departments after providing them with a permit and copies of all official correspondence.

We also make sure to re-contact these departments or assign one of the court’s representatives to visit them and speed up procedures.

Does the court freeze bank accounts following an inheritance dispute?

Freezing bank accounts that are part of a disputed inheritance is not an automatic action by the court and it requires beneficiaries to submit a request.

It is an online application that is processed rapidly.

Another important detail people need to know is that residential units — whether houses, buildings or land plots — inside the UAE that are part of an inheritance dispute are not the jurisdiction of our court.

These are under the jurisdiction of the land department.

How do you look at assets that exist outside the UAE but are part of inheritance disputes here?

Assets of deceased Dubai residents outside of the UAE that are part of their wills are under the laws of the country in which they exist.

The Dubai court's role, in this case, is to only prove the beneficiaries’ rights in these assets. Dividing them between beneficiaries happens through that country’s courts and based on their laws.

Accepting and acknowledging the Dubai court's decision in this regard is subject to the laws in these countries and if there are any judicial treaties between the two countries.

Since your verdicts are final, what can a person do if they are not happy with the verdict?

They can either submit a plea requesting judges to reconsider their verdict and they need to explain why, or submit a request to the technical office at the court citing an error in the judgment.

UAE legal reforms — in pictures

Our legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants

MATCH INFO

Uefa Champions League semi-final, first leg

Barcelona v Liverpool, Wednesday, 11pm (UAE).

Second leg

Liverpool v Barcelona, Tuesday, May 7, 11pm

Games on BeIN Sports

Like a Fading Shadow

Antonio Muñoz Molina

Translated from the Spanish by Camilo A. Ramirez

Tuskar Rock Press (pp. 310)

The specs

Price, base: Dh228,000 / Dh232,000 (est)
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Fuel economy, combined: 12.5L / 100km

PAKISTAN SQUAD

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The specs

Engine: 2.0-litre four-cylinder turbo

Power: 268hp at 5,600rpm

Torque: 380Nm at 4,800rpm

Transmission: CVT auto

Fuel consumption: 9.5L/100km

On sale: now

Price: from Dh195,000 

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Credit Score explained

What is a credit score?

In the UAE your credit score is a number generated by the Al Etihad Credit Bureau (AECB), which represents your credit worthiness – in other words, your risk of defaulting on any debt repayments. In this country, the number is between 300 and 900. A low score indicates a higher risk of default, while a high score indicates you are a lower risk.

Why is it important?

Financial institutions will use it to decide whether or not you are a credit risk. Those with better scores may also receive preferential interest rates or terms on products such as loans, credit cards and mortgages.

How is it calculated?

The AECB collects information on your payment behaviour from banks as well as utilitiy and telecoms providers.

How can I improve my score?

By paying your bills on time and not missing any repayments, particularly your loan, credit card and mortgage payments. It is also wise to limit the number of credit card and loan applications you make and to reduce your outstanding balances.

How do I know if my score is low or high?

By checking it. Visit one of AECB’s Customer Happiness Centres with an original and valid Emirates ID, passport copy and valid email address. Liv. customers can also access the score directly from the banking app.

How much does it cost?

A credit report costs Dh100 while a report with the score included costs Dh150. Those only wanting the credit score pay Dh60. VAT is payable on top.

World ranking (at month’s end)
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Mar - 159
Apr - 161
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Jun – 162
Currently: 88

Year-end rank since turning pro
2016 - 279
2015 - 185
2014 - 143
2013 - 63
2012 - 384
2011 - 883

What vitamins do we know are beneficial for living in the UAE

Vitamin D: Highly relevant in the UAE due to limited sun exposure; supports bone health, immunity and mood.Vitamin B12: Important for nerve health and energy production, especially for vegetarians, vegans and individuals with absorption issues.Iron: Useful only when deficiency or anaemia is confirmed; helps reduce fatigue and support immunity.Omega-3 (EPA/DHA): Supports heart health and reduces inflammation, especially for those who consume little fish.

Racecard
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if you go

The flights
The closest international airport to the TMB trail is Geneva (just over an hour’s drive from the French ski town of Chamonix where most people start and end the walk). Direct flights from the UAE to Geneva are available with Etihad and Emirates from about Dh2,790 including taxes.

The trek
The Tour du Mont Blanc takes about 10 to 14 days to complete if walked in its entirety, but by using the services of a tour operator such as Raw Travel, a shorter “highlights” version allows you to complete the best of the route in a week, from Dh6,750 per person. The trails are blocked by snow from about late October to early May. Most people walk in July and August, but be warned that trails are often uncomfortably busy at this time and it can be very hot. The prime months are June and September.

 

 

The specs
Engine: 3.0-litre twin-turbo flat-six

Power: 480hp at 6,500rpm

Torque: 570Nm from 2,300-5,000rpm

Transmission: 8-speed dual-clutch auto

Fuel consumption: 10.4L/100km

Price: from Dh547,600

On sale: now 

England World Cup squad

Eoin Morgan (capt), Moeen Ali, Jofra Archer, Jonny Bairstow, Jos Buttler (wkt), Tom Curran, Liam Dawson, Liam Plunkett, Adil Rashid, Joe Root, Jason Roy, Ben Stokes, James Vince, Chris Woakes, Mark Wood

Directed by: Craig Gillespie

Starring: Emma Stone, Emma Thompson, Joel Fry

4/5

UAE currency: the story behind the money in your pockets
Pots for the Asian Qualifiers

Pot 1: Iran, Japan, South Korea, Australia, Qatar, United Arab Emirates, Saudi Arabia, China
Pot 2: Iraq, Uzbekistan, Syria, Oman, Lebanon, Kyrgyz Republic, Vietnam, Jordan
Pot 3: Palestine, India, Bahrain, Thailand, Tajikistan, North Korea, Chinese Taipei, Philippines
Pot 4: Turkmenistan, Myanmar, Hong Kong, Yemen, Afghanistan, Maldives, Kuwait, Malaysia
Pot 5: Indonesia, Singapore, Nepal, Cambodia, Bangladesh, Mongolia, Guam, Macau/Sri Lanka

Who was Alfred Nobel?

The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.

  • In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
  • Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
  • Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.

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​​​​​​​two stars

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Three and a half stars

The President's Cake

Director: Hasan Hadi

Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem 

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Our family matters legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Updated: November 15, 2022, 7:30 AM