The UAE real estate market has long attracted foreign investors, thanks to its robust infrastructure, strategic location, and tax-free incentives. However, one of the most nuanced aspects of property ownership for expatriates in the UAE concerns legal ownership rights and inheritance laws. This article unpacks the legal framework surrounding foreign ownership property and addresses how inheritance rights for expats are treated under UAE law, particularly in Dubai and Abu Dhabi.
Legal Framework for Foreign Property Ownership in the UAE
Historically, foreign ownership of property in the UAE was highly restricted. However, with the passing of progressive laws over the past two decades, expats can now own property under specific legal structures and within designated zones.
Dubai
- Governed by Law No. 7 of 2006 Concerning Real Property Registration in the Emirate of Dubai, expatriates can own:
- Freehold properties in designated areas (e.g., Dubai Marina, Downtown Dubai, Palm Jumeirah).
- Usufruct or leasehold interests up to 99 years in other zones.
- The Dubai Land Department (DLD) oversees registration and title transfers, ensuring protection and transparency.
Abu Dhabi
- Under Law No. 19 of 2005 (amended by Law No. 3 of 2015), foreign nationals can own:
- Freehold units in designated investment zones (e.g., Saadiyat Island, Al Reem Island).
- Long-term usufruct or musataha rights (up to 50 years, renewable).
- Registration is managed by the Abu Dhabi Department of Municipalities and Transport (DMT).
This blog is a part of our Legal & Regulatory Framework in UAE Real Estate blogpost.
Can Expats Fully Own Property in the UAE?
Yes — but only in designated freehold areas, and ownership does not automatically extend to all legal rights under inheritance law. Title deeds can be issued in the name of the foreign national (individual or corporate entity), and the property can be sold, leased, or mortgaged.
However, ownership does not override Sharia law in matters of inheritance unless proper legal planning is in place — a critical point for expat families.
Inheritance Laws Applicable to Expats
Default Rule: Sharia Law Applies
Under Federal Law No. 5 of 1985 (UAE Civil Transactions Code) and Personal Status Law No. 28 of 2005, the default rule is that Sharia law applies to inheritance of real estate in the UAE, regardless of the deceased’s religion or nationality — unless specific exceptions apply.
This means:
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- Sons typically inherit double the share of daughters.
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- Widows are entitled to 1/8th if there are children.
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- Non-Muslim relatives (e.g., spouses from different faiths) may face legal complexities.
Recent Reforms: A Shift Toward Civil Law for Non-Muslims
In 2020, the UAE announced landmark legal reforms (including amendments to the Personal Status Law) allowing non-Muslim expatriates to request the application of their home country’s inheritance laws for assets located in the UAE.
As of February 2023, under Federal Decree-Law No. 41 of 2022 on Civil Personal Status, applicable to non-Muslims, wills can now be registered and recognized in civil courts. The law allows:
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- Equal inheritance for male and female children.
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- Foreign wills to be upheld if properly registered.
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- Choice of non-Sharia law for estate distribution.
Practical Tools for Expats: How to Protect Inheritance Rights
To avoid the default application of Sharia law, expats should consider the following legal tools:
Registering a Will in the UAE
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- Dubai:
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- Through the DIFC Wills and Probate Registry (WPR) for non-Muslims.
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- Allows registration of wills covering UAE assets (including property, shares, and guardianship of minors).
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- Abu Dhabi:
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- Through the Abu Dhabi Civil Family Court.
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- Non-Muslims can register wills under the new civil personal status law.
Nomination in Joint Ownership
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- Foreign couples may hold joint tenancy with survivorship rights, although survivorship isn’t always automatically recognized in UAE courts.
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- Registering joint ownership as tenants in common with clear shares can provide legal clarity.
Trust and Foundations (Free Zones)
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- These structures can offer succession planning, asset protection, and tax efficiency.
Limitations & Common Misconceptions of Joint Ownership and Wills
| Misconception | Legal Reality |
| “A will back home is enough.” | Not necessarily. It must be registered in the UAE or enforced via local courts. |
| “My spouse automatically inherits my UAE property.” | Without a UAE-registered Will, Sharia may apply, and the spouse may only get 1/8th. |
| “Joint ownership guarantees full transfer.” | Only if supported by a Will or civil law mechanisms like foundations. |
Key Takeaways
While foreigners can own real estate in the UAE, inheritance rights remain subject to careful legal planning. By registering a will under the UAE’s civil personal status laws or using advanced structures like trusts and foundations, expatriates can safeguard their assets and ensure their families are protected from unexpected legal hurdles.
As the UAE continues to modernize its legal system, especially in family and civil law domains, foreign investors have more certainty and control, but proactive legal steps remain essential.
