Could there be any doubt that the United Arab Emirates stands as the central hub, attracting companies from around the world seeking entry into the flourishing Middle Eastern market? A significant contributing factor is undeniably the relentless efforts and contributions of expatriates who came in search of jobs to support their families back home.
UAE’s massive expatriate population includes people from all over the world, predominantly South-East and Asian countries. Despite their various backgrounds, there is a similarity between these expatriates: UAE was not only a country that offered them job opportunities so they could support their families back home but has also become a home for their children. You will find many first-generation expatriates, especially in Dubai, as their parents eventually settled and decided to start their families in a once-foreign land. And starting a family in an unknown land without citizenship is a daunting task. One of the major concerns for parents was the uncertain future of their children and family in case they passed away, especially if they were non-Muslims as Dubai’s legal system draws inspiration heavily from Islamic values and codes of conducts.
In the UAE, Sharia law is the primary legislation for inheritance and succession laws. Previously, these laws would apply to both Muslims and non-Muslims in the absence of a will. This would include laws wherein a son of the deceased could receive twice the inheritance of his sister, which can be uncommon in other countries. Also, there were practical considerations to be made as at the event of death the deceased’s bank accounts would be frozen until a judgement is passed. This can leave the remaining family in a tight position if the deceased was the sole breadwinner of the family and passed away in an accident.
From 1st February 2023, there has been a major change to Dubai Civil Codes: any inheritance of Non-Muslims will be divided according to the “laws applicable in the Deceased country of nationality at the time of his death.” This allows for expatriates to divide their property as per their home laws if they do not practise Islam and thus, would not wish to split their inheritance according to Sharia law. It has allowed for changes such as the division of property without differentiation of gender for the deceased's children and arguably a larger share for the spouse. This is welcomed as a positive change that has benefitted one of UAE’s vital populations, including some new regulations interconnected with inheritance law such as real estate and ownership law in the past few years.
As it has been applied recently, it is still left to see whether the practical considerations remain the same, including cases wherein the deceased expatriates own properties in the UAE. One would argue that the best way to avoid these issues would be to make a legal will and the Dubai International Financial Centre (DIFC) also provides wills which can be made to suit the client’s needs. However, they can be quite expensive and inaccessible for people, especially for expatriates who can sometimes fall in the lower bracket of income earners in UAE.
In conclusion, this amendment to the Dubai Civil Code is an extremely important step in a series of many that the government has taken to provide for its expatriate population, and one must wait to see the overall impact. Given the UAE’s growing importance in the Middle East and the global landscape, such legal measures can prove to be quite useful when catering to a wider and more diverse population.
By Priyal Barbariya