Power of Attorney (POA) in the UAE
The United Arab Emirates (UAE) uses Power of Attorney (POA) arrangements as an important instrument of legal and financial management, as stated in the UAE Civil Transactions Law Federal Law No. 5 of 1985 as amended by Federal Decree-Law No. 30 of 2020 (“Civil Code”). A POA is governed by Articles 924 to 961 of the Civil Code, through which one person (the “Principal”) delegating power to another person (the “attorney/agent”) to act on their behalf.
The UAE Civil Code recognizes two main types of POAs, each having its own purpose, as per Article 927 of the Civil Code, a General Power of Attorney grants the agent broad powers to manage the principal’s incidents across a wide scope, including financial decisions, property transactions, and any relevant contracts. However, a Special Power of Attorney, as per Article 927 of the Civil Code, limits the agent’s authority to specific tasks or transactions. This might involve selling a specific property, managing a particular bank account, or representing the principal in a specific legal matter et al.
POAs are largely used in the UAE across various industries, it enables for property transactions by authorizing agents to act on behalf of owners during the buying, selling, or leasing processes, as outlined in Dubai Land Department regulations. Businesses also utilize POAs under the UAE Commercial Companies Law (Federal Decree-Law No. 32 of 2021) to authorize managers or employees to make decisions, sign documents, and represent the company in legal matters. Individuals may also issue POAs to manage finances, healthcare, or legal proceedings when they cannot attend to these matters personally, as stated in the Personal Status Law (Federal Law No. 28 of 2005 as amended by Federal Decree-Law No. 52 of 2023).
POAs in the UAE must follow to specific legal requirements, the article 925 of the Civil Code states that both the principal and agent must possess legal capacity, meaning they must be of sound mind and have attained the age of majority (21 years). POAs require notarization by a notary public, as stated by the Notary Public Law (Federal Decree-Law No. 20 of 2022), and attestation by relevant authorities to ensure authenticity and validity. Depending on the type of the POA and the transaction involved, registration with the government departments, such as the Dubai Land Department or the Department of Economic Development, may also be necessary.
Article 958 of the Civil Code allows the principal to revoke a POA at any time, as long as they have the legal capacity to do so. The death or legal incapacity of either the principal or the agent can automatically terminate the POA, as per Article 954.
POA offers a structured way to delegate powers for various purposes. Understanding the types of POAs, its usage, and the relevant legal implications can assist preparing a POA as well as ensuring that both the principal’s and agent’s rights and obligations are protected.
Written by – Senior Legal Counsel Dr. Sherina M. Saji
