The UAE has taken a significant step toward strengthening legal clarity and transparency with a new federal decree under the Civil Transactions Law. The move directly addresses a long-standing grey area: what happens to the assets of expatriates who pass away without leaving a will or identifiable heirs.
Under the new decree, financial assets located within the UAE and owned by a foreign national who dies without heirs will be transferred into a charitable endowment, or waqf. These assets will not remain unclaimed or tied up in prolonged legal uncertainty. Instead, a designated authority will oversee their management, ensuring transparency and directing their use toward purposes that serve the public interest.
Until now, such cases often lacked explicit legal guidance, leading to delays and uncertainty for institutions and authorities handling unclaimed estates. The decree introduces a clear and structured framework, offering consistency in how these sensitive situations are addressed. By defining the process in law, the UAE has reduced ambiguity while reinforcing orderly estate administration.
Officials have described the measure as part of broader efforts to modernise the country’s civil laws and strengthen governance standards. The update reflects a practical approach that balances legal certainty with social responsibility, ensuring that assets are managed ethically and contribute positively to society rather than remaining dormant.
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For expatriates living and working in the UAE, the decree also serves as a quiet reminder of the importance of estate planning. While the new rules provide a clear outcome when no heirs exist and the ruling of expat assets, having a valid will remains the most effective way to ensure personal assets are distributed according to individual wishes.
In short, the decree underscores the UAE’s continued focus on legal reform, transparency, and public welfare, reinforcing confidence in its evolving legal framework for residents and investors alike.