Given death's status as one of life's few certainties, it is ironic that the inheritance of a Dubai property should have created so much uncertainty in both legal and layman circles.
Many clients approach us to discuss how their Dubai assets, particularly their real estate, will be managed in the event of their death. Their primary concern is usually that their estate should pass in accordance with their specified wishes, rather than in accordance with the principles of Sharia law.
In the case of Muslim clients, the position is clear. Their estate, wherever situated and of whatever nature, should pass in accordance with the principles of Sharia law.
In the case of non-Muslims, the position has been the subject of much debate. Based on the decisions of the Dubai Courts in the inheritance cases we have dealt with recently, we hope here to be able to clarify the position and dispel many of the myths that have arisen concerning the consequences of the death of a non-Muslim Dubai property owner.
The basic principle is that where a non-Muslim owner of property in Dubai dies, his or her property should pass in accordance with the provisions of the law of the country of his or her citizenship ("the Applicable Law").
If the deceased has made a will, then that will, together with supporting documentation issued by the Court in the country of the deceased's citizenship, is submitted to the Dubai Courts. This is firstly to show the intentions of the deceased as regards his or her assets and secondly to evidence the fact that those intentions are in accordance with the laws of the country of citizenship of the deceased. Provided those intentions do not offend against the public policy of the UAE (and note here that bequests contrary to Sharia law should not so offend, if made by a non-Muslim), then a Succession Certificate should be issued by the Dubai Court ratifying the terms of the foreign will. That Certificate is then produced to the Dubai Land Department with a request that they amend their records and re-issue the ownership documentation in the name of the rightful heir(s).
If the deceased has not made a will, then the relevant provisions of the Applicable Law are submitted to the Dubai Court evidencing how the estate is to be divided between the heirs under that Applicable Law in circumstances of intestacy. After consideration of the Applicable Law, and the supporting documentation, the Court should issue the Succession Certificate confirming the entitlement of the heirs of the estate in accordance with the laws of intestacy of the country of citizenship of the deceased.
There are of course documentary and procedural requirements, on which legal advice should be sought in each case.
But don't just take our word for it. In 2006 Mr. Sultan Buti Bin Mujrin, Director General of the Dubai Land Department stated that:
"If the property is owned by a Muslim, the inheritance will be according to the principles of Sharia, as is the case with other assets. But in the case of non-Muslims, the issues will be decided on the basis of their respective personal law or as per the Will bequeathed by the owner of the property. There is no question of Sharia law being applied, unless of course the property owner wishes the inheritance to be determined on the basis of Sharia norms and volunteers to do so."
In summary, our brief advice would be to (i) make sure you have a will that is valid under the law of the country of your citizenship, (ii) include in the will a statement to the effect that you do not wish your estate to be subject to Sharia law, and (iii) make sure the will is known to and accessible by your appointed executors.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
