The UAE has introduced a clear legal framework governing the treatment of assets belonging to foreign residents who die in the country without a will or identifiable legal heirs. The provisions form part of the newly issued Civil Transactions Law and are intended to address long-standing legal uncertainty surrounding such cases. As a result, banks and financial institutions now have explicit guidance on how these matters should be resolved.
Under the updated law, financial assets located in the UAE and owned by a foreign individual with no heirs will be designated as a charitable endowment. Moreover, these assets will be placed under the supervision of a competent authority to ensure proper management and allocation. “The Law further provides that financial assets located within the UAE belonging to a foreigner with no heirs shall be designated as a charitable endowment, subject to supervision by the competent authority to ensure proper management and allocation,” the statement said.
Greater Legal Certainty for Institutions and Residents
Previously, such cases often remained unresolved for extended periods, creating operational and legal challenges for financial institutions. However, the new framework introduces a transparent mechanism that allows assets to be administered in an orderly manner and aligned with public-interest objectives. Therefore, the update strengthens legal certainty while reducing the risk of prolonged asset freezes.
Additionally, the clarification supports broader efforts to modernise the UAE’s civil law framework and align it with international best practices. As a result, foreign residents gain greater clarity over estate outcomes, while institutions benefit from a consistent and enforceable legal process.
