Being a businessman, expat, or just some other reason that makes you deal with some legal matters in Dubai, you must have heard of the term "Power of Attorney" (POA). But what does it really mean? How it works and why is it so crucial in the UAE?

So, here’s some insight into Power of Attorney in Dubai. Skip the legalese, and get the information you need to understand this crucial tool and how it can benefit your life.

What Is Power of Attorney (POA)?

A Power of Attorney is essentially a legal document where one grants a person, who is called the "attorney-in-fact" or simply referred to as "agent," to act on one's behalf on legal, financial, or business matters. The range can be anything from signing contracts to making financial decisions, managing one's property, and even representing a person in a legal proceeding.

It’s like saying, “Hey, I trust you to make decisions for me if I can’t be there myself.”

Types of Power of Attorney in Dubai

The rules in Dubai define specific kinds of Power of Attorney that serve different requirements according to individual needs. Here are the most common types:

• General Power of Attorney (GPA): When granting someone General Power of Attorney status they receive permission to manage most financial decisions and legal matters on your behalf. This includes buying and selling property, signing contracts, managing bank accounts, and more. However, the catch is that the agent can do almost anything you could do, which is why you must trust them completely.
• Special Power of Attorney (SPA): The Special Power of Attorney has restricted abilities compared to other forms of power of attorney. Agents obtain authorization through this arrangement to complete one designated task or make a specified decision. Through a Special POA you authorize someone to act for some specially assigned tasks like sell a property in your behalf or act as your representative in legal proceedings. Once that task is completed, the POA becomes null and void.
• Durable Power of Attorney: A Durable Power of Attorney stays in effect even if you become mentally incapacitated. This is often used for health or financial care if someone is unable to make decisions for themselves due to illness or injury.
• Springing Power of Attorney: The authority under this form of POA enables someone to act on your behalf only after a qualifying condition occurs such as illness or inability to make decisions by yourself.

Why Do You Need a Power of Attorney in Dubai?

There are unexpected life events that may force you to become inaccessible for making decisions or signing documents. An executed Power of Attorney acts as your proxy to manage your activities at times when you’re traveling, sick, or simply need someone to handle your affairs while you focus on other things

For instance, if you’re an expat in Dubai and need someone to manage your property back home, a Special Power of Attorney allows a trusted person to handle the task. Alternatively, if you run a business and can't be present for a crucial meeting, you can designate someone with a General Power of Attorney to make decisions in your place.

The Legal Importance of Power of Attorney in Dubai

The UAE's legal system has specific requirements for Powers of Attorney to be valid. It is not just signing on a piece of paper but has rules to follow, and understanding them is important. Here are a few key legal points:

• UAE Federal Law No. 5 of 1985 (UAE Civil Code): This law lays down the basic framework for Powers of Attorney in the UAE. It clarifies that the person granting the POA (the principal) must be legally competent and must act voluntarily without any form of coercion.
• Notarization Requirement: For a Power of Attorney to be legally recognized in Dubai, it generally needs to be notarized. This means it must be signed in front of a notary public who will verify the identity of the principal and ensure they understand the document they are signing. or expats, this may also require additional steps at the consulate or embassy, especially for POAs that will be used outside the UAE.
• Registering the POA: Not always but if your Power of Attorney is in regard to selling, purchase, or leasing a property or in case of business, it may also get registered at the Dubai Land Department or even the Courts of Dubai. For the said, person you appoint as your power of attorney must be legally valid there.

How to Grant a Power of Attorney in Dubai

So, how do you really go about drafting a Power of Attorney in Dubai? It is quite straightforward but needs attention to detail:

• Choose Your Agent Carefully: First, choose someone you trust absolutely. The person you are going to appoint as your agent will have huge powers over your affairs. So, it has to be someone you can rely on, trustworthy, and knowledgeable in the areas where you need assistance.
• Draft the Document: The Power of Attorney must clearly outline what powers you’re granting and any limitations on the agent’s authority. You can either draft the document yourself or use the services of a legal professional to ensure it's compliant with UAE law.
• Notarization and Authentication: Once the document is drafted, you’ll need to have it notarized by a public notary. For expats, this might also require additional authentication from your embassy or consulate.
• Register if Necessary: For certain legal matters, such as real estate transactions or financial dealings, you may need to register your POA with the relevant authorities. This adds another layer of legitimacy and ensures that your agent can act without complications.

Risks and Considerations

While a Power of Attorney is incredibly useful, it does come with risks. The most significant one is abuse of power. To mitigate this, always:

• Choose a trustworthy agent.
• Set clear limits on their authority in the POA document.
• Regularly review and update the POA if necessary.

Call to Action

In Dubai, a Power of Attorney is crucial to handle personal or business issues. To get it right, talk to trusted experts. Our Dubai advocates and legal consultants at Alqada Claim Recovery Services specialize in providing legal services and will guide you to ensure the accuracy of your Power of Attorney to protect your best interests throughout the process.