UAE Inheritance Law: A Dual-Track Framework
The UAE operates a dual-track inheritance system shaped by Federal Decree-Law No. 28 of 2005 (Personal Status Law) and significantly reformed by Federal Decree-Law No. 41 of 2022. For UAE nationals and Muslim residents, Sharia-based succession principles apply by default. Non-Muslim expatriates now have the option to apply the inheritance laws of their home country or opt into the UAE’s civil law framework.
This distinction is structurally important for anyone holding assets in the UAE. Without proper estate planning, asset distribution may follow rules the deceased did not anticipate or intend.
Sharia-Based Succession: Default Rules
Under Sharia inheritance principles, estate distribution follows fixed shares prescribed by Islamic jurisprudence. The key characteristics include:
| Principle | Application |
|---|---|
| Fixed shares | Designated heirs receive pre-determined fractions of the estate |
| Male-to-female ratio | Male heirs typically receive double the share of female heirs in the same class |
| Testamentary limit | A Muslim may only bequeath up to one-third of the estate by will |
| Heir exclusion | Designated heirs cannot be disinherited |
| Debt priority | Outstanding debts and funeral expenses are settled before distribution |
These rules apply automatically to Muslim decedents unless a valid will directs otherwise within permissible limits.
Civil Law Option for Non-Muslim Expats
Federal Decree-Law No. 41 of 2022 introduced a landmark change: non-Muslim expatriates may now opt to have their UAE-based assets distributed according to their home country’s laws or under a simplified UAE civil framework. Key provisions include:
- Freedom of testamentary disposition: Non-Muslims may distribute 100 per cent of their estate by will
- Equal inheritance: No mandatory gender-based distribution ratios
- Guardianship rights: Surviving parents can designate guardians for minor children
- Joint property recognition: Jointly held assets transfer to the surviving co-owner
This reform addressed a long-standing concern among expatriate investors and substantially reduced legal uncertainty around UAE asset succession.
DIFC Wills Service Centre
The Dubai International Financial Centre Wills Service Centre provides a common-law jurisdiction option for will registration. Established in 2015, it allows non-Muslim residents to register wills governing their Dubai assets, guardianship of minor children, and healthcare directives.
| Will Type | Coverage | Registration Fee (AED) |
|---|---|---|
| Full Will | All Dubai assets, guardianship, healthcare | 10,000 |
| Property Will | Specific Dubai real estate only | 7,500 |
| Guardianship Will | Minor children guardianship only | 5,000 |
| Business Owners Will | Dubai business interests | 10,000 |
DIFC-registered wills are enforced through the DIFC Courts, which operate under common-law principles. This provides predictability for individuals from common-law jurisdictions.
Estate Planning for UAE-Based Assets
Effective estate planning in the UAE requires addressing several structural considerations. Assets held across multiple emirates may fall under different court jurisdictions. Real property, company shares, bank accounts, and investment portfolios each carry distinct succession rules depending on whether the holder has a registered will.
For high-net-worth individuals, the absence of inheritance tax in the UAE makes the federation an attractive jurisdiction for asset structuring. However, the administrative complexity of probate proceedings — particularly when no will exists — can result in prolonged asset freezes that undermine this advantage in practice.
The recommended approach combines a DIFC or Abu Dhabi-registered will with a complementary home-country testament, ensuring global asset coverage and reducing the risk of jurisdictional gaps.