Introduction to Inheritance Law in UAE: Sharia and Civil Alternatives for 2025
The United Arab Emirates (UAE) is internationally recognised for its progressive yet tradition-rooted legal system—one that deftly balances economic modernisation with religious and cultural heritage. Inheritance law is a domain where this balance is especially delicate and vital, given the UAE’s role as a regional business gateway and the diversity of its resident population. With the application of both Sharia-based inheritance as codified in Federal Law No. 28 of 2005 on Personal Status and the evolving civil law choices permitted since landmark legislative updates (notably, Federal Decree-Law No. 41 of 2022 on Civil Personal Status, affecting non-Muslims), understanding the nuances of inheritance for both individuals and businesses in 2025 is now imperative. Recent reforms further expand the autonomy of non-Muslim residents, including expatriate business owners, to determine the succession of assets. For local and international corporate counsel, HR managers, and private clients alike, grasping these legal choices is non-negotiable for risk management, estate planning, and regulatory compliance.
This in-depth advisory article provides a clear, professional analysis of the legal framework, practical choices, risks, and compliance strategies surrounding inheritance in the UAE. Designed for legal and business audiences, it combines authoritative commentary with actionable guidance, covering how inheritance law intersects with company structures, family businesses, and international estates. The discussion is firmly grounded in official UAE legal sources as of 2025, reflecting both Sharia and civil personal status routes, and tailored to the interests of today’s dynamic UAE residents and corporate actors.
Table of Contents
- Overview of the UAE Legal Framework for Inheritance
- Sharia Law Inheritance: Features and Provisions
- Civil Law Inheritance Options for Non-Muslims
- Choosing the Applicable Law: Impact on Residents and Businesses
- Comparing Sharia and Civil Law Approaches: Key Differences
- Case Studies: Inheritance in Action for Families and Businesses
- Risks of Non-Compliance and Strategic Compliance Planning
- Recommendations and Best Practices for 2025 and Beyond
- Conclusion: Shaping the Future of Succession in the UAE
Overview of the UAE Legal Framework for Inheritance
The structure of inheritance law in the UAE reflects the country’s unique legal duality, offering both Sharia (Islamic law) and civil law frameworks. Historically, Sharia has been the default regime for inheritance, applying to all Muslims—regardless of nationality—and, unless specified otherwise, to non-Muslims as well. The Federal Law No. 28 of 2005 on Personal Status codifies these default rules, with courts in the Emirates implementing precise distributions based on Islamic teachings.
However, in response to the needs of its increasingly international community, the UAE has introduced substantial reforms over the past years. The most notable is Federal Decree-Law No. 41 of 2022 on Civil Personal Status, applicable primarily to non-Muslim expatriates, granting them significant freedom to choose how their estate will be distributed—either according to the law of their nationality (subject to proof) or UAE civil provisions. This dual-track system has set a new benchmark for flexibility and transparency in estate succession across the GCC region.
The legal foundation for inheritance in the UAE is further enshrined in the UAE Government Portal – Personal Status Laws, which provides authoritative guidance on procedures, document requirements, and recent amendments. Cross-emirate differences are minimised by the federal character of these laws, but some administrative nuances may remain in Dubai and Abu Dhabi, especially regarding non-Muslim registries and will executions.
Sharia Law Inheritance: Features and Provisions
Core Principles of Sharia Inheritance
Sharia inheritance rules are governed principally by Federal Law No. 28 of 2005, aligning with Hanafi, Maliki, Shafi’i, and Hanbali schools of Islamic jurisprudence. These provisions define predefined shares for legal heirs—typically including the spouse, children, parents, and siblings. Sharia law emphasizes familial obligation and social fairness, disallowing total freedom in estate distribution and imposing clear formulas.
Key Features
- Fixed Shares: The law sets fixed portions for close relatives (e.g., sons, daughters, spouses), leaving only one-third of the estate open to bequest by will (wassiya), but not to any Sharia heir.
- Gender-Based Distribution: Generally, male heirs (e.g., sons) receive twice the share of their female counterparts (e.g., daughters), reflecting Quranic mandates.
- Priority Order: Direct descendants and parents have priority; distant relatives receive only in absence of closer kin.
- No Absolute Freedom: Testators cannot disinherit Sharia heirs, nor allocate more than the regulated ‘one-third’ for others.
Official Documents and References
- UAE Ministry of Justice: Access to consolidated legal texts and procedural guidelines.
- Federal Legal Gazette: Full text of Law No. 28/2005 and related amendments.
Practical Insights: Application to Muslim Residents and Businesses
For Muslim UAE residents—whether Emirati or expatriate—unless alternative arrangements are specifically permitted by law (such as registered non-Muslim wills for non-citizens), Sharia inheritance applies to their UAE assets. Business owners must anticipate forced-heirship rules when structuring family companies, shareholdings, and partnership interests:
- Family Businesses: Sharia-compliant company structures often provide continuity strategies, such as partnership agreements clarifying management rights upon succession.
- Corporate Shares: Company shares pass to the Sharia heirs; this can fragment voting power and undermine long-term family control unless advance planning (such as trusts or holding companies) is implemented within allowed UAE frameworks.
Visual Suggestion: Place a process flow diagram illustrating Sharia estate distribution and procedural steps, to clarify timelines and document requirements.
Risks of Non-Compliance under Sharia Framework
- No Will or Informal Wills: If a will exceeds ‘one-third’ for non-heirs or is not duly registered, it is invalid under UAE law for Muslims.
- Company Share Disputes: Lack of succession planning can trigger litigation between heirs or managerial deadlock.
Civil Law Inheritance Options for Non-Muslims
Landmark Reforms: Federal Decree-Law No. 41 of 2022
Non-Muslim expatriates in the UAE benefit from a series of ground-breaking reforms culminating in Federal Decree-Law No. 41 of 2022 on Civil Personal Status. This law, effective February 2023, gives non-Muslim residents the autonomy to:
- Adopt the inheritance rules of their home country, provided supporting evidence and translations are produced.
- Opt for UAE civil inheritance provisions designed for non-Muslims, as an explicit alternative to Sharia.
UAE civil law now supports the full testamentary freedom of non-Muslims regarding asset distribution, provided the will is properly registered under UAE procedures or in the new non-Muslim will registries (notably in Dubai Courts and Abu Dhabi Judicial Department).
Key Features of Civil Law Inheritance
- Freedom of Disposition: Non-Muslims may leave their UAE-based assets as they see fit, unrestricted by fixed quotas for specific relations.
- Equal Shares: Distribution is not subject to gender-based differentiation; children can inherit equally regardless of sex.
- Recognition of Foreign Wills: Foreign wills valid in the home country can be recognized in the UAE if formalities are met.
- Simplified Process: Dedicated registries for non-Muslim wills streamline probate, inheritance tax (typically not applicable in UAE), and asset transfer.
Practical Application: For Residents and Multinational Business Owners
- Corporate Holdings: Non-Muslim expatriates can bequeath their shareholdings or directorship rights as they wish, supporting succession planning and business continuity.
- Family Estate Planning: Blended families, stepchildren, or unmarried partners can now be provided for, improving asset protection strategies.
Visual Suggestion: A compliance checklist summarizing will registration requirements for non-Muslims in Dubai, Abu Dhabi, and other emirates.
Administrative Steps for Civil Law Inheritance
- Determine the preferred inheritance law (home country, UAE civil).
- Draft the will with a qualified UAE legal advisor, ensuring compliance with procedural and translation requirements.
- Register the will at the relevant UAE court or registry.
- Update company shareholder registers and inform relevant authorities for corporate interests.
Timeframes and required documentation are detailed by the respective emirate’s Judicial Department on the UAE Government Portal.
Choosing the Applicable Law: Impact on Residents and Businesses
Guidance for Individual and Corporate Planning
The flexibility to choose a succession regime empowers residents to align inheritance arrangements with family needs or business interests. However, the choice of law may trigger jurisdictional complexities, especially where assets or heirs are spread across jurisdictions, or where company shares are held in UAE Free Zones versus onshore structures.
Business owners—whether sole proprietors, partners, or shareholders in large family groups—should precisely define the succession of directorship, voting rights, and economic interest in both their wills and shareholder agreements. Expatriates must coordinate inheritance provisions with cross-border estate planning instruments such as trusts or insurance policies, as UAE courts may apply domestic law in the absence of validly registered foreign documents.
Critical Practical Points
- Heirs’ eligibility and rights may shift dramatically depending on the legal route chosen—detailed legal review is essential before deciding.
- Asset location can determine which law is enforced if there is ambiguity or a challenge in local courts.
- Family and business continuity should be scoped in the context of both UAE legal frameworks and any foreign succession plans in place.
Comparing Sharia and Civil Law Approaches: Key Differences
| Feature | Sharia Law (Federal Law No. 28/2005) | Civil Law (Decree-Law No. 41/2022) |
|---|---|---|
| Default Application | All Muslims, default for others unless specified | Non-Muslims by choice or nationality |
| Testator Freedom | Bequest limited to 1/3, rest fixed by law | Full freedom of disposition |
| Gender Distribution | Male heirs typically receive double share | Equal shares for sons and daughters |
| Scope of Beneficiaries | Primarily blood relatives, spouse, parents | Any person or entity named in valid will |
| Will Registration | Mandatory; limits for non-heirs | Mandatory; recognized via Non-Muslim Will Registries |
| Company Succession | Heirs inherit shares as mandated | Testator may allocate shares/fiduciary management |
| Foreign Law | Limited recognition | Home country law recognized with support |
Table: Strategic comparison between Sharia and civil law inheritance tracks for 2025 UAE planning
Case Studies: Inheritance in Action for Families and Businesses
Case Study 1: Expatriate Business Owner (Non-Muslim)
Jane, a UK citizen resident in Dubai, owns a significant stake in a Free Zone consultancy. By opting to register her will under the Abu Dhabi Judicial Department’s Non-Muslim Will Registry, she appoints her spouse and children (including from a previous marriage) as equal heirs—sidestepping Sharia fixed-share rules. In the event of her demise, her UAE-based company shares are smoothly transferred, supporting her intention for business continuity. This would have been impossible under the default Sharia regime, given the standard distribution to blood relatives.
Case Study 2: Muslim Family-Owned Manufacturing Company
Ahmed, an Emirati businessman, passes away with a substantial manufacturing concern. In the absence of alternative arrangements, his assets, including business shares, are distributed per Federal Law No. 28/2005 among his wife, sons, daughters, and parents. This can impact company decision-making, as voting power is divided. Pre-arranged shareholders’ agreements and buy-sell clauses are needed to help maintain strategic business control while respecting Sharia priorities.
Case Study 3: Mixed-Nationality Family with Real Estate
Marta, a Spanish non-Muslim married to a Muslim resident in Abu Dhabi, jointly owns real estate with her husband. She wishes to pass her share to her children from a previous marriage. By registering a civil law-compliant will under UAE’s new framework, she has this choice recognised, while her husband’s Islamic estate planning can still follow Sharia. Each party’s intent is respected, with probate carried out by respective legal tracks.
Risks of Non-Compliance and Strategic Compliance Planning
Non-Compliance Risks
- Unregistered or Ambiguous Wills: If a will is not clearly registered, UAE courts apply the default legal regime (generally Sharia for Muslims or non-Muslims lacking clear documentation).
- Invalid Dispositions: Allocations exceeding one-third for non-heirs (in Sharia cases) or improper translations for foreign wills can trigger complete or partial invalidity.
- Asset Freezing: Inheritance litigation or bureaucratic delays will freeze UAE bank accounts and company shares until probate is resolved.
Compliance Checklist (Visual Suggestion)
| Step | Action | Responsible Party |
|---|---|---|
| 1 | Determine applicable law | Individual/Legal Advisor |
| 2 | Draft and translate will | Legal Advisor |
| 3 | Register will at relevant UAE court | Individual/Company Secretary |
| 4 | Align company constitutive documents | Company Legal Department |
| 5 | Notify relevant authorities on succession | Heirs/Executors |
Table: Essential compliance actions for succession planning in the UAE
Consultancy Recommendations for Compliance
- Engage a UAE-licensed legal advisor for will drafting and registration.
- Review and update shareholder agreements and articles of association to reflect inheritance strategies.
- Where applicable, consider dual-jurisdiction legacy planning with cross-border advisors.
- Educate stakeholders (management, HR, family) about inheritance rules for seamless asset transition.
Recommendations and Best Practices for 2025 and Beyond
For Individuals
- Actively select the preferred inheritance regime (Sharia or civil) and formalise your intent through a properly executed will.
- For non-Muslims, capitalise on federal civil law provisions—especially if asset distribution wishes differ from Sharia defaults.
- Continuously review wills and estate planning instruments, particularly after major life changes (marriage, divorce, business acquisitions).
For Businesses and Company Owners
- Draft clear succession clauses in shareholder agreements addressing directorship and management transfer on shareholder death.
- Align company governance documents with succession plans to avoid operational disruption.
- Utilise compliance checklists and regular legal audits to ensure ongoing alignment with applicable law—including new updates for 2025 and beyond.
For multinational or family conglomerates, integrating UAE-specific inheritance strategies with foreign estate planning vehicles (e.g., offshore trusts, insurance arrangements) is essential for asset preservation and minimising contestation risk.
Conclusion: Shaping the Future of Succession in the UAE
The UAE’s dual-track inheritance law regime offers residents and businesses unprecedented flexibility and legal certainty when it comes to succession. Sharia inheritance remains the controlled, traditional route for Muslims, while non-Muslims are now empowered by Federal Decree-Law No. 41 of 2022 to shape estate outcomes to suit familial and business priorities. The alignment of inheritance law with global best practices, combined with the procedural clarity offered by new will registries and compliance protocols, ensures that the UAE retains its magnet status for private wealth, international business, and cross-cultural families.
Going forward, proactive legal compliance—supported by specialist consultancy input—will be the cornerstone of successful estate and succession planning in the region. Regularly reviewing changes, staying abreast of official decrees, and embedding best-practice documentation will keep individuals and businesses secure, compliant, and prepared for the evolving legal landscape of the UAE through 2025 and beyond.