UAE legal reforms: how divorce and inheritance laws have changed


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Sweeping changes are being made to the UAE's personal status laws, with some of the most significant updates affecting divorce and inheritance.

The UAE government announced the overhaul of parts of its legal system on Saturday. The changes mean Islamic law, or Sharia, will rarely be used when it comes to family-law cases for non-citizens.

So what has changed and how will this affect the country's citizens and residents? The National explains.

What has changed?

Amendments to the UAE's personal status laws, some of which were first written in 1987, mean the country will now offer expatriates a path to divorce that is not governed by local law, which is based on Islamic law, or Sharia.

A couple from any religion that chooses to divorce in the UAE will have proceedings dictated by the laws of the country in which they married.

What was the law previously?

Previously, Muslim couples had Sharia applied to the division of assets, support payment requirements and child custody agreements.

Until now, non-Muslim expatriates who divorced in the UAE could choose either to have Sharia applied or request to have the laws of their home country applied instead. If the couple had different passports, then the citizenship of the husband would apply. And if the law of the individual's home country failed to cover an aspect of the divorce procedure, then the courts could apply UAE law instead.

Now, the personal status law of the country where the marriage took place will be applied.

What does this mean?

It is a dramatic change for couples who may have otherwise had to go through lengthy and cumbersome procedures to finalise a divorce and divide their assets.

The new law also mentions joint assets and accounts and says the court could be called on to mediate if there is no agreement between the two parties.

Changing the applicable jurisdiction over a divorce settlement could have dramatically different implications in respect of financial outcomes for each party.

The updated law will ensure there will be no need for petitions or conflict over whose laws should apply.

While the law includes the division of assets, it does not mention child custody laws.

Inheritance will not be determined based on the deceased's citizenship, rather than sharia law. istockphoto.com
Inheritance will not be determined based on the deceased's citizenship, rather than sharia law. istockphoto.com

How have inheritance laws changed?

Saturday's changes also cover wills and inheritance. Until now, family members of a deceased person, particularly in acrimonious cases, could have found assets were divided under Islamic law, which residents may be unused to, and can be an unequal division for men and women.

Previously, only a non-Muslim expatriate could petition the court for their country's laws to be applied when managing their assets on their death, while a Muslim resident of the UAE would automatically have Sharia applied. If a non-Muslim expatriate had not petitioned for their home country's laws to be applied to their will on their death, then the UAE's courts would automatically apply Sharia.

Now, a person's citizenship will dictate how their assets are divided among their next of kin. An individual's inheritance will be divided according to their citizenship at the time of death, irrespective of religion. If a will is drafted, it would be followed. If an individual did not draft a will before their death, the law of the country of citizenship would apply.

The one exception is for property bought in the UAE, which will be managed according to Sharia if a will was not submitted.

How is inheritance managed under Sharia?

Under Sharia, all assets, including property, finances and even outstanding debts, will be inherited by the individual's eligible heirs. Eligible heirs do not include illegitimate or adopted children and divorced women cannot claim from a former husband's estate if they have been divorced for more than about three months (the time allocated in Islam to determine if the woman is pregnant).

Inheritance laws under Sharia are quite complicated and depend on how many eligible heirs an individual has as well as their familial relationships to the deceased.

Primary heirs, who are always entitled to a share of an inheritance, include: the deceased's spouse, parents, children and grandchildren.

But the deceased's grandparents, siblings and nieces and nephews could also be eligible for a share of the inheritance if the individual was unmarried or had no living parents.

Inheritance under Islam typically allocates a larger share of assets to male heirs than female heirs, with the expectation that men would be responsible and support women.

Usually, a daughter would receive half the assets her brother would inherit from their father.

How are wills currently registered?

Non-Muslim expatriates can register a will with the UAE courts.

Wills registered at Dubai International Financial Centre’s wills and probate registry cover resident and investor assets across the UAE, as well as internationally.

In Abu Dhabi, non-Muslims have been able to register a will at the emirate’s Judicial Department since 2017.

Law firms in the UAE report an increase in inquiries about wills since the Covid-19 outbreak.

The full list of 2020 Brit Award nominees (winners in bold):

British group

Coldplay

Foals

Bring me the Horizon

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British Female

Mabel

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Charli xcx

Mahalia​

British male

Harry Styles

Lewis Capaldi

Dave

Michael Kiwanuka

Stormzy​

Best new artist

Aitch

Lewis Capaldi

Dave

Mabel

Sam Fender

Best song

Ed Sheeran and Justin Bieber - I Don’t Care

Mabel - Don’t Call Me Up

Calvin Harrison and Rag’n’Bone Man - Giant

Dave - Location

Mark Ronson feat. Miley Cyrus - Nothing Breaks Like A Heart

AJ Tracey - Ladbroke Grove

Lewis Capaldi - Someone you Loved

Tom Walker - Just You and I

Sam Smith and Normani - Dancing with a Stranger

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Ariana Grande

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Camila Cabello

Lana Del Rey

Lizzo

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Bruce Springsteen

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Tyler, The Creator

Dermot Kennedy

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Best album

Stormzy - Heavy is the Head

Michael Kiwanuka - Kiwanuka

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Dave - Psychodrama

Harry Styles - Fine Line

Rising star

Celeste

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2012-2015

The company offers payments/bribes to win key contracts in the Middle East

May 2017

The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts

September 2021

Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act

October 2021

Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence 

December 2024

Petrofac enters into comprehensive restructuring to strengthen the financial position of the group

May 2025

The High Court of England and Wales approves the company’s restructuring plan

July 2025

The Court of Appeal issues a judgment challenging parts of the restructuring plan

August 2025

Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision

October 2025

Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange

November 2025

180 Petrofac employees laid off in the UAE

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Dubai launched the pilot phase of its real estate tokenisation project last month.

The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.

Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.

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Our legal consultants

Name: Hassan Mohsen Elhais

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

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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.”