UAE-Wide Regulations vs Emirates Specific Regulations for Power of Attorney

A Power of Attorney is one of the most well-known and useful documents that authorizes someone else to act on your behalf. Regardless of whether the ultimate objective of a Power of Attorney is to empower an agent to represent you in business-related matters, manage your property, or oversee your finances, a Power of Attorney continues to be an invaluable asset in the legal domain. However, what residents and foreign investors tend to forget is that while there are UAE-wide rules governing the enforcement of a POA, specific emirates like Abu Dhabi, Sharjah, and Dubai have their own legal frameworks that determine how POAs can be issued, recognized, and governed within their own individual jurisdictions.

Getting acquainted with the complete federal framework and the emirate-specific rules is crucial if you want to ensure the validity and understand how your POA will function across the emirates.

Understanding the framework of UAE-wide laws:

At its core, the UAE Civil Transactions Law lays out the basic rules for the delegation of both authority and agency, both fundamental pillars that determine the legal basis of a POA. Under this specific law, a POA must very specifically outline the range of powers being granted, while simultaneously identifying and naming both the principal and the agent. The POA is then to be executed with full consent from both the involved parties, further to which it is then subject to notarization. Once notarized, a POA is legally recognized across the emirates, giving it weightage in courts and government institutions.

This uniform framework ensures that overall, there is a basic level of consistency. For example, a POA drafted for use in Ras al Khaimah will still have legal standing in Abu Dhabi and Dubai, as long as it is notarized. But despite the fact that the federal law guarantees recognition of the POA, the procedures and requirements for issuing it and accepting it are different for each of the emirates.

Emirates Specific Regulations about POAs:

While the federal law provides a general structure for POAs, each emirate has developed its own process for POA notarization and procedural regulations.

Abu Dhabi

The Abu Dhabi Judicial Department (ADJD) concerns itself with the issuance of POAs in Abu Dhabi. Similar to Dubai, Abu Dhabi also has a provision for e-notarization services, but the process varies. For instance, POAs that relate to the sale of property are often subject to an arduous verification process and sometimes require additional approvals from other related departments, like the Department of Municipalities.

Dubai:

Dubai has one of the most advanced notarization processes for Power of Attorney in UAE, offering a remote platform that allows residents to digitally issue a POA through a video conferencing feature with the Dubai Courts. This facility is particularly useful for those who live abroad and need a Power of Attorney for Dubai-specific property transactions or company representatives.

Sharjah, Fujairah, and other Emirates:

Sharjah and the other emirates, like Ajman and Fujairah, rely more heavily on in-person notarization in the context of POAs. While digital and remote facilities are gradually being introduced, they are not as streamlined as Power of Attorney Dubai. Some emirates may also impose restrictions on the validity period of a Power of Attorney unless it is explicitly mentioned, resulting in further ambiguity.

For individuals managing affairs like business ownership and property ownership across the emirates, overlooking emirate-specific requirements can lead to delays and, in some cases, even rejection of the POA.

While it may appear that POAs follow the same legal framework across all the emirates, the finer details are often shaped by each Emirate’s rules and regulations. Understanding the differences and layers in these regulations will help you in the process of creating a well-drafted Power of Attorney.