Establishing a business in the United Arab Emirates (UAE) is highly rewarding. However, one of the critical steps that most entrepreneurs overlook is securing the legacy with proper inheritance planning. Will registration in UAE play a vital role in ensuring that your assets, including business shares, bank accounts, and personal property, are distributed or handed down properly as per your wishes. Residents and expatriates, including both Muslims and non-Muslims, must understand how UAE will for expats and others work, the process of drafting them, and the associated legalities. Individuals aged 21 or older have legal capacity to make decisions as it is crucial to ensure the assets are protected and handed over properly.

A will is a legal document that allows an individual to outline how the assets and properties should be distributed after their demise. The UAE has a unique legal framework for inheritance that applies differently to Muslims and non-Muslims.

Muslims: Sharia-based Law

For Muslims, inheritance is governed under Sharia Law, regardless of the nationality. Some key aspects under this are:

• Specific portions of the estate are pre-determined for mandatory heirs such as spouse(s), children, and parents.
• Muslims can only hand over up to one-third of their estate through a will. The remaining two-thirds are subject to the strict rules of Islamic inheritance, ensuring legal heirs receive the legally mandated shares.
• If no will exists, or if a will exceeds the permissible one-third share, UAE courts apply Sharia succession rules automatically.

These rules ensure compliance with Islamic jurisprudence but may limit personal flexibility in business succession planning.

Non-Muslims: UAE Civil Law

To accommodate UAE’s large expat population, reforms have allowed non-Muslims greater freedom when it comes to wills in UAE. For non-Muslims, the UAE will for expats is governed by two federal laws:

• Inheritance Law 1: Under the ‘Federal Decree-Law No. 41 of 2022 on Civil Personal Status’, non-Muslims can request that the law of their home country govern the distribution of their UAE estate. This needs to be expressly stated in a registered will.
• Inheritance Law 2: Non-Muslims also have the option to apply UAE civil inheritance rules (rather than Sharia). These rules generally allow for more flexibility in distributing assets. If a non-Muslim passes away without a registered will, their estate will be distributed according to the UAE civil personal status law.

This distinction makes understanding wills in Dubai, wills in Abu Dhabi, and other Emirates essential for anyone owning assets in the UAE, especially for entrepreneurs planning business setup in UAE.