Why Do I Need a Power of Attorney in UAE?

✅ Quick Summary about POA in the UAE

• A Power of Attorney (POA) lets someone act on your behalf legally.
• In the UAE, both the Principal and Attorney must be over 21 years old.
• POAs can be general or limited, covering property, business, or personal affairs.
• A POA is valid only while the Principal is alive, unlike a Will.
• Having a POA helps avoid delays when you’re unavailable to act personally.

What is a POA in the UAE?

A power of attorney (POA) is a document wherein you legally authorize someone to act on your behalf. There are 2 parties involved: the Principal (person giving the POA) and the Attorney/Agent (person receiving the POA). 

For either capacity, the allowed age is 21 years old and above. 

Anyone who is below 21 is considered a minor as per the UAE law and cannot give or receive POAs. Also, sufficient mental capacity to fully understand the nature and effect of the document is a must.

The authorization can be very broad and comprehensive. It can also be very specific, special, and/or limited.

When Do You Need a POA?

Oftentimes, the “need” to issue a POA can vary from not having time to attend to a personal affair or having to sign some documents that are needed to run a company. Whether your reason is not having the luxury of time or effort, putting a POA in place will ensure that things will still be taken care of while you’re unavailable.

Sometimes, a POA becomes a “must” when the reason is due to time constraints and health conditions. In such circumstances, the best course of action is to have a trusted person act on your behalf.

Example Use Cases of POA

A sample scenario would be matters of real estate. If you have plans of selling, buying, gifting, handover, managing (renting), or even mortgaging a property, issuing a POA will be of great help to you because these real estate transactions require your physical presence to complete them.

The same goes for your business affairs. A POA can cover:

• Management
• Shares
• Liquidation
• Formation
• Banking
• VAT
• Trademark

Setting Up a POA

Here’s how it works: As mentioned above, you appoint someone you trust to handle your affairs in all or very specific matters. You could grant a POA that is only valid until you deem it necessary. The length of the validity can be as short as one (1) month or as endless as an unlimited term.

Important Note:

Your spouse or family does not automatically have the power or authority over your estate and shares. If those assets need to be managed, and you are too busy or away on a long trip and have no POA set up to continue on behalf of you, your family, or business will likely be forced into costly and time-consuming delays.

Will vs POA

Do not expect your Will to serve as a substitute. Wills designate the distribution of your wealth to your loved ones (or favored people) in the unfortunate event of your death.

POAs are valid during your lifetime and support the continuation of your personal and business affairs while you are unable to handle them or make decisions yourself.

Key takeaway:

A Power of Attorney can only be enforceable while the Principal is still living/alive. A Will is only enforceable upon the Testator’s (person giving the Will) death.

👉 Want to understand Wills in more detail? Read our complete guide to Wills in the UAE.

Choosing the Right Person

The risks of appointing someone as your representative or attorney-in-fact through a POA exist. It must be someone you trust without hesitation.

Best practice:

It is advisable to set up a contract with your Attorney/Agent and specify:

• The remuneration (if any)
• Scope of work
• Circumstances under which they should act

Conclusion

Anyone might need to set up a power of attorney. One way is to find a template online that satisfies your requirements and complies with the laws of the country in which the POA is used, and execute it properly at the Notary Public.

Given the legal complexities, however, it is important to have a lawyer prepare your POA, especially if it is related to your valuable assets.

POAs can be cancelled or revoked at any time simply by executing a formal revocation document, have it attested by a Notary Public, and the moral obligation of informing all concerned parties that the POA is no longer a valid instrument.

Why Choose POA.ae?

POA.ae is the first dedicated Power of Attorney firm in the United Arab Emirates and offers a full range of related services, including POA drafting, translation, and representation services.

To order your POA today, please place an online order or get in touch with me at +971 52 316 4941 or email me at julia@poa.ae.

Frequently Asked Questions (FAQs)

1. What is a Power of Attorney (POA) in the UAE?
   A Power of Attorney is a legal document that allows someone to act on your behalf for legal, business, or personal matters in the UAE.
2. Who can give or receive a POA in the UAE?
   Both the Principal and the Attorney must be at least 21 years old and mentally capable as per UAE law.
3. What can a POA be used for in the UAE?
   It can be used for property transactions (buy, sell, rent, mortgage), company management, banking, VAT, trademarks, and more.
4. Is a Will the same as a Power of Attorney (POA)?
   No. A Power of Attorney is only valid during your lifetime, while a Will only takes effect after death.

     5. Can I revoke a Power of Attorney (POA)?
         Yes, by executing and notarizing a revocation document and notifying all involved parties.