UAE Civil Transactions Law 2026: Rules for Heirless Expatriate Assets

What happens to your money in the UAE if you die without any legal heirs? Until recently, this could be a difficult question, especially for expatriates with bank deposits, investments and other financial interests in the country.

The UAE Civil Transactions Law 2026 now gives a clearer answer. Federal Decree-Law No. 25 of 2025 replaced the UAE's previous Civil Transactions Law and came into force on 1 June 2026. Among its many changes, Article 17 introduces a specific rule for financial rights located in the UAE that belong to a foreigner who leaves no heir. Those rights become a charitable endowment, or Waqf, supervised by the competent authority.

This sounds straightforward, but there is an important distinction. Dying without a Will and dying without heirs are two different situations.

Here is what expatriates, families and business owners should understand.

What Is the UAE Civil Transactions Law 2026?

The new Civil Transactions Law was issued as Federal Decree-Law No. 25 of 2025 on 1 October 2025. It repealed Federal Law No. 5 of 1985 and became effective on 1 June 2026.

Official UAE guidance describes it as a broad update to the country's civil law framework. It covers areas such as contracts, obligations, legal capacity, property rights, assignments, damages and other civil transactions.

The provision attracting attention among expatriates is Article 17.

What Does Article 17 Say About Inheritance?

Article 17 of the new law sets out several rules relating to succession and Wills. As a starting point, succession is governed by the law of the country to which the deceased belonged at the time of death, subject to the other provisions contained in the Article.

The most important new wording for heirless expatriate estates appears in Article 17(2).

It states that financial rights located within the UAE belonging to a foreigner who has no heir become a charitable endowment, or Waqf, under the supervision of the competent authority.

The UAE Government also specifically identified this change when announcing the new Civil Transactions Law.

Previous law vs the 2026 rule

One point needs care here. Article 17(2) specifically uses the term financial rights. It should not automatically be read as saying that every form of property owned by every expatriate follows the same process.

Real estate and other assets can engage separate rules within the Civil Transactions Law as well as special or local legislation.

Does "No Heirs" Mean "No Will"?

No. This is one of the easiest parts of the new rule to misunderstand.

An expatriate may die without a Will and still have several legal heirs. A spouse, children, parents or siblings may qualify depending on the applicable succession law.

An heirless estate is a different situation. It arises when there is no person legally entitled to inherit under the rules governing that particular estate, subject to any valid testamentary arrangements.

For example, imagine an expatriate dies without a registered Will but leaves a spouse and two children. The estate does not suddenly become a charitable Waqf. There are identifiable family members whose inheritance rights must be determined under the applicable law.

Article 17(2) addresses the much narrower situation where the foreigner has no heir.

What Happens If a Non-Muslim Expat Dies Without a Will?

The answer can depend on the law and jurisdiction applying to the estate. At the federal level, Federal Decree-Law No. 41 of 2022 on Civil Personal Status provides a civil succession framework for non-Muslims within its scope.

Under Article 11, where there is no Will, the surviving spouse generally receives half of the estate, while the other half is distributed equally between the deceased's children without distinction between males and females.

Where there are no children, the legislation provides further rules involving parents and siblings. It also allows heirs, in certain circumstances, to request application of the law applicable to the estate under the Civil Transactions Law.

So an expatriate dying intestate should not automatically be treated as heirless. The court first has to establish the applicable law, identify eligible heirs and deal with the estate through the required succession process.

What Happens When There Really Are No Heirs?

This is where the new UAE Civil Transactions Law 2026 makes the position clearer. Where Article 17(2) applies, UAE-based financial rights belonging to a foreigner with no heir are designated as a charitable endowment.

The assets are therefore placed within a legally supervised Waqf structure rather than simply remaining unresolved indefinitely. A charitable endowment generally involves property being dedicated to charitable purposes while its administration remains subject to the applicable endowment framework and official supervision.

The exact authority involved can depend on the emirate and applicable legal arrangements. Dubai, for example, has its own legislation governing endowments and the role of Awqaf Dubai.

This is also why families should avoid assuming that the same administrative route applies to every estate in every emirate.

Does the Rule Include Real Estate?

Article 17(2) expressly refers to financial rights existing within the UAE.

The same Article separately states that UAE law applies to a Will made by a foreigner concerning immovable property located in the UAE. Article 18 also provides that possession, ownership and real rights relating to immovable property are governed by the law of the place where that property is located.

So if an expatriate owns an apartment, villa, land or another property in the UAE, you should not simply apply the financial-rights Waqf provision without checking the broader succession and property rules.

The correct treatment may depend on the Will, nationality, location of the property and the applicable federal, local or special legal regime.

How Does a Will Change the Situation?

Article 17 also contains detailed choice-of-law rules for Wills. The substantive terms of a Will or another disposition taking effect after death can generally be governed by the law selected in that document. If no law is selected, the law of the person's nationality at the time of death can apply.

The form of the Will may also be governed by the law selected in the document, the person's nationality when the disposition was made or the law of the country where it was made.

For immovable property situated in the UAE, however, Article 17 specifically provides for UAE law to apply to a foreigner's Will concerning that property.

For non-Muslims, the DIFC Courts Wills Service is one established option. It allows eligible individuals to register different types of Wills covering UAE assets, including Full Wills, Property Wills, Business Owners Wills and Financial Assets Wills.

A DIFC Financial Assets Will can cover up to 10 UAE bank or brokerage accounts, subject to the applicable eligibility requirements.

How Is an Expat Estate Handled After Death?

Having relatives does not automatically allow them to walk into a bank and withdraw the deceased's money.

There is a court process. Dubai Courts allows heirs and other interested persons to open an inheritance file. Its published requirements include documents such as an attested death certificate, copies of heirs' passports, Emirates IDs where applicable and information relating to the estate. Foreign-language documents generally require certified Arabic translation and overseas documents may require authentication.

Abu Dhabi Judicial Department similarly provides a process for opening an inheritance file and determining the deceased's assets and their distribution. 

This makes documentation especially important when heirs live overseas. Passports, birth certificates, marriage certificates and other documents used to prove family relationships may need authentication or legal translation before UAE authorities can rely on them.

Nexture's guide to MOFA attestation in the UAE explains how foreign-issued documents generally move through the authentication process.

Expat Business Owners Should Check Their Company Shares Too

Personal estate planning becomes more complicated when you own a UAE company. Company shares can represent a major part of your wealth. Your personal Will, company constitutional documents, shareholders' agreement and the rules of the company's jurisdiction may all become relevant after your death.

A well-drafted shareholders' agreement can deal with events such as death or incapacity, including valuation procedures and share-transfer arrangements.

For larger family-owned portfolios, succession planning may also involve holding structures such as foundations, SPVs or family-office arrangements. 

Practical Steps Expatriates Can Take

You do not need to wait for a succession problem to appear. Start by making a simple inventory of what you own in the UAE. Include personal and joint bank accounts, brokerage accounts, company shares, real estate, vehicles and significant investments.

Then check:

1. Who would legally inherit if you died today?

2. Do you already have a valid Will?

3. Does the Will actually cover your UAE assets?

4. Have you bought new property or opened new investment accounts since preparing it?

5. Are your beneficiary and family records current?

6. Can your relatives easily locate your asset records and key documents?

7. Do overseas marriage, birth or corporate documents require attestation?

8. If you own a company, what happens to your shares after death?

Do not assume a Will drafted years ago in another country automatically produces the result you expect in the UAE. The governing law, asset location, type of asset and registration method all need to be considered.

Conclusion

The UAE Civil Transactions Law 2026 gives expatriates a clearer framework for an unusual but important situation. Under Article 17, financial rights located in the UAE belonging to a foreigner with no heir become a charitable endowment supervised by the competent authority.

That does not mean every expatriate who dies without a Will loses their assets to a Waqf. An intestate person may still have a spouse, children, parents, siblings or other legally recognised heirs.

The real question is who qualifies as an heir under the law governing the estate and whether a valid Will or other succession arrangement exists.

If you own meaningful assets in the UAE, particularly property, investments or company shares, review your succession documents while you can still decide how those assets should be handled.

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