Inheritance ‘Game-changing’ reforms to inspire expatriates to consider a future in the country

The UAE’s reform of its personal status laws is a legal stimulus that will attract more people and foreign investment to the country, lawyers said yesterday.

The comprehensive package, which included changes to laws that relate to divorce, is wide reaching and expected to bring the country’s legal system on par with other global hubs.

Under the overhaul that was announced on Saturday, Islamic law, or Sharia, will only rarely be applied in the administration of expatriates’ estates.

Experts said the amendments would put to bed many questions residents have about how their assets would be divided after death.

Michael Kortbawi, partner at BSA Ahmad Bin Hezeem and Associates LLP, said the news was a step in the right direction.

“We need more time to understand it and we have to wait to see the written law, but it will be welcomed by many expatriates. The newest development I see is the option to reduce the application of Sharia in inheritance and divorce issues,” he said.

“When it comes to inheritance, it will assure people that whatever they own will be transferred according to their dying wish or as per the law of their country of origin.

“That is one of the main pillars of this announcement and it is a real game changer.”

While a copy of the draft law has yet to be released, lawyers who spoke to The National said they expected it to be published in the Official Gazette soon.

Jasmin Fichte, managing partner at Dubai law firm Fichte and Co, said it was a positive and bold step by the government.

“Expatriates will be encouraged to continue their lives after retirement within the UAE without any fears of the process of dividing their estate according to Sharia and or UAE laws,” she said.

“Previously, if a non-Muslim person died in the UAE, their inheritors were obligated to submit an inheritance certificate from the UAE so that the deceased’s estate could be divided according to Sharia.

“Any inheritance certificate issued from a non-Muslim country, attested or not, would not be accepted before the UAE courts.”

But now, if a person dies in the UAE without a will in place, their estate will be divided according to the law of their country – regardless of their religion.

“The only exception here applies to the properties that are owned by the person within the UAE,” Ms Fichte said.

“These properties will be managed and divided according to the UAE laws.”

Previously, non-Muslims in Abu Dhabi could register their wills at the Judicial Department. However, Dubai did not permit the registration of wills before its courts.

Instead, non-Muslims could only do so through the Dubai International Financial Centre’s Wills and Probate Registry.

“We believe that by announcing such a federal decree-law, any person will now be able to register their will before Dubai Courts,” Ms Fichte said.

“Additionally, it is anticipated that the registration fees will be much less than that [charged by] the DIFC Courts.

“The challenge will be how to implement foreign laws before the UAE Courts. It could be that the judge will be provided with a translated copy of the foreign laws and trained accordingly.

“Another scenario could be that the court has appointed experts on the foreign jurisdictions.”

If a person dies in the UAE without a will, their estate will be divided according to the law of their country