UAE civil law update: New rules for expats’ assets with no heirs, wills

Dubai: The UAE has introduced a clear new rule on what happens to a foreign residents' assets if they die in the country without a will or any claim from legal heirs, under the newly issued Civil Transactions Law.

Under the law, financial assets located in the UAE and belonging to a foreigner who leaves no heirs will be designated as a charitable endowment and managed by a competent authority.

"The Law further provides that financial assets located within the UAE belonging to a foreigner with no heirs shall be designated as a charitable endowment, subject to supervision by the competent authority to ensure proper management and allocation," the UAE Media Office said in a statement.

The move ends years of legal uncertainty and ensures such assets are handled transparently and in the public interest.

Under the new law:

The announcement focuses specifically on cases involving the absence of heirs and does not extend beyond that scope.

The rule is limited to cases where a foreign resident dies without any legal heirs. While the January 1, 2026 announcement outlines the treatment of assets in such situations, it does not specify how cases involving a valid will would be handled.

However, a legal expert told Gulf News that greater clarity is expected once the law is published in the UAE Gazette, which is expected in the coming days. For now, existing will registration systems in the UAE continue to apply, with no changes announced.

Previously, cases involving foreigners who died without heirs often resulted in assets remaining in legal limbo, lengthy court processes, and uncertainty for banks, landlords and authorities

The new rule provides clarity and finality, ensuring assets are dealt with lawfully and responsibly. For residents, it underscores the importance of writing a valid will and ensuring heirs are legally documented.

For businesses, financial institutions, and property stakeholders, the change reduces uncertainty around dormant or disputed assets, provides a clear legal pathway for resolution, and limits long-running ownership disputes.

Banks and institutions will now have explicit legal guidance on how to resolve such cases.

The charitable endowment provision is part of the UAE’s broader effort to modernise civil law, remove ambiguity and align legislation with real-world realities.

"The new law represents a pivotal legislative milestone and a qualitative shift in regulating civil transactions in the UAE, based on a balanced and contemporary vision that seeks to reorganise the general foundations of rights and obligations, while enhancing the clarity of legal rules and facilitating their practical application," read the official announcement.

The Civil Transactions Law simplifies legal procedures, eliminates duplication with other laws, and strengthens judicial clarity and efficiency. The new approach reflects a balance among legal certainty, the public interest, and social responsibility.