Power of Attorney Rights in UAE: Act and Legal Rules

In a Power of Attorney (POA), “rights” define the legal powers granted to the agent and the authority retained by the principal. These rights determine what actions the agent can perform and the limits that apply under UAE law. They are governed by Federal Decree-Law No. 5 of 1985 (UAE Civil Transactions Law) and the UAE notary regulations.

They are particularly important in cases such as parental or durable power of attorney, where authority must be clearly defined to prevent misuse. This makes it crucial to have a PoA in the UAE.

1. Rights of the Principal (Person Granting Power)

Even after granting a Power of Attorney, the principal retains important legal rights. These rights ensure the principal stays in control of the authority given to the agent.

Key rights of the principal include:

• Right to choose the agent: The principal may appoint any trusted and competent person as the agent.
• Right to limit authority: The principal can define the scope, duration, and purpose of the agent’s powers.
• Right to revoke the POA: The principal may revoke the POA at any time, provided they are mentally competent. UAE law requires revocation through the notary or relevant authority for it to be legally valid.
• Right to demand accountability: The principal can request records, documents, and explanations of all actions taken by the agent.
• Right to specify single-use or general POA: The principal can decide whether the POA is valid for a one-time act or general ongoing authority.

By clearly defining these rights, the principal prevents misuse and retains control over the agent’s actions.

2. Rights of the Agent (Attorney-in-Fact)

The agent’s rights arise solely from the Power of Attorney document. The agent may act only within the limits defined in the POA, whether for financial or family matters, or parental authority.

Key rights of the agent include:

• Right to act within defined powers: The agent has the legal right to carry out all tasks and decisions explicitly authorized in the POA. This ensures they can represent the principal effectively and in accordance with UAE law.
• Right to represent the principal: The agent can interact with banks, courts, and government departments if the POA permits.
• Right to receive compensation: The POA or a separate agreement may allow the agent to receive payment for their services.
• Right to delegate only if allowed: The agent has the legal right to delegate their powers to another person, but only if the POA explicitly allows such delegation. This ensures that the agent can manage tasks efficiently while remaining within the scope of the principal’s authorization.

The agent’s authority exists only where the document allows it and must be exercised responsibly.

Key Legal Principles Governing POA Rights in UAE

UAE law ensures that both the principal’s and the agent’s rights are exercised properly. These POA rules maintain the legality and enforceability of the POA in the UAE.

Important principles include:

• Authority limits: The agent cannot exceed the powers stated in the POA. The principal or third parties can legally challenge acts beyond the granted authority.
• Fiduciary duty: The agent must act honestly, loyally, and solely for the principal’s benefit. Misuse or conflict of interest is prohibited.
• Record-keeping: The agent must maintain proper documentation of all actions performed under the POA.
• Durable POA provisions: Authority may continue after the principal becomes incapacitated only if the POA explicitly allows this.

These principles balance authority with legal duties, ensuring the POA serves its intended purpose without abuse.

A POA in the UAE can take several forms, aka types, defining the legal rights and responsibilities of both the principal and the agent. Choosing the right POA ensures the principal retains control while the agent acts within their legal authority.

All POAs in the UAE must be notarized by a licensed notary public to be legally effective. The principal may also require the agent to get the PoA attested for property or banking matters.

1. General Power of Attorney

A General POA gives broad authority to the agent, allowing them to handle multiple financial, legal, or business matters on behalf of the principal. The General PoA gives the agent wide authority, but the principal retains control over the scope and limits.

Rights and Responsibilities:

• Agent Rights: Act across multiple areas specified in the document, such as banking, contracts, and business management.
• Principal Rights: Set limits on certain actions and revoke the POA at any time.
• Protection: The principal or third parties can legally challenge actions beyond the granted powers.

Use Case: Managing company accounts, signing routine contracts, or handling legal matters while the principal is abroad.

Learn how to draft a General PoA so that it is accepted by UAE authorities and properly notarized.

2. Limited or Special Power of Attorney

A Limited or Special (PoA) grants authority to the agent only for specific tasks. This restricts their powers to prevent misuse.

Rights and Responsibilities:

• Agent Rights: Perform only the actions explicitly listed, such as selling a property or signing a single contract.
• Principal Rights: Limit the agent’s authority and revoke the POA at any time.
• Protection: Any action outside the defined scope is legally invalid.

Use Case: Selling property, signing a single contract, or representing the principal in a particular legal matter.

Limited POAs safeguard the principal’s legal rights by specifying exactly what the agent can do.

3. Durable Power of Attorney

A Durable POA ensures the agent’s authority continues if the principal becomes incapacitated due to illness or disability. This authority, however, does not extend beyond the principal’s death.

Rights and Responsibilities:

• Agent Rights: Continue to act legally within the powers granted, including financial, medical, or personal decisions.
• Principal Rights: Define scope and limits in advance to maintain control, even during incapacity.
• Protection: The agent must act in the principal’s best interests. Exceeding authority can be legally challenged.

Use Case: Long-term financial management, healthcare decisions, or eldercare planning.

In the UAE, a Durable POA works only if the document explicitly states continued authority and is notarized.

4. Specialized POAs in the UAE

Specialized POAs focus on specific areas. The rights and responsibilities depend on the purpose:

• A Property POA allows the agent to sell, lease, or manage property, while the principal retains the right to revoke the authority or supervise the agent’s actions.
• A Banking POA permits the agent to operate bank accounts and transfer funds within the limits set by the principal.
• A Family / Divorce POA / Marriage POA authorizes the agent to represent the principal in family-related legal proceedings, with the principal retaining final decision-making authority.
• A Medical / Healthcare POA enables the agent to make healthcare decisions on behalf of the principal, provided clear boundaries are defined in the document.
• A Litigation POA allows the agent to act in courts or before government authorities only when such powers are expressly authorized and properly notarized.
• An Inheritance POA allows the agent to manage succession and estate-related matters, while the principal continues to control key estate decisions.

Understanding the different types of PoA in the UAE helps you grant the correct authority to a trusted person and manage your responsibilities efficiently.

For more insight, read our blog on the difference between a PoA vs Will in the UAE.

A POA in the UAE must comply with federal laws to be valid. Following the legal framework ensures that both the principal and the agent can exercise their POA rights and responsibilities safely.

Proper compliance also reduces the risk of disputes, misuse, or rejection by authorities. This section explains the key UAE rules and how they protect the legal rights of power of attorney holders.

1. Governing Law

All POAs in the UAE are governed by the UAE Civil Transactions Law (Federal Law No. 5 of 1985). This authority ensures that a Power of Attorney is legally valid and recognized across all emirates. It specifically covers:

• Legal recognition of the POA for both the principal and the agent.
• Authorization to carry out specific tasks, such as property transactions, banking operations, or business dealings.
• Clear framework for granting, exercising, and documenting powers.
• Protection of both the principal and the agent while performing authorized actions.
• Compliance requirements to ensure actions taken under the POA are enforceable under UAE law.

2. Drafting and Notarization

POAs in the UAE must be drafted in Arabic or in a bilingual format. Proper drafting and online notarization for a PoA are critical to protect both parties’ POA rights and responsibilities.

Key points:

• The principal may appear at a UAE Notary Public to execute the POA.
• E-notarization is also available in some emirates; as of now, Dubai and Abu Dhabi offer online notarization services.
• Foreign POAs must be attested by the UAE Embassy and the Ministry of Foreign Affairs.
• Translation into Arabic is a legal right when a POA is issued abroad.

3. Rights in Drafting the POA

Careful drafting ensures that the POA rights and responsibilities of both principal and agent are fully protected.

Principal legal rights of power of attorney:

• Control the agent’s authority.
• Specify the duration and limits of the POA.
• Include clauses for parental authority or durable POA if needed.

Agent POA rights and responsibilities:

• Act only within the powers clearly outlined in the document.
• Follow fiduciary duties by acting in the principal’s best interests.

Clear drafting, notarization, and adherence to UAE law reduce the risk of misuse and safeguard the interests of all parties.

In the UAE, a Power of Attorney (POA) can be revoked or terminated under specific conditions. Knowing these rights helps ensure lawful actions and prevents disputes.

Principal’s Rights:

• Right to Revoke: The principal can revoke the POA at any time if they are mentally competent.
• Notification Requirement: The principal must notify the agent and any relevant authorities. This ensures the revocation is legally effective.
• Control Over Termination: The principal can specify conditions under which the POA ends. Examples include fulfillment of the stated purpose or expiration of a validity period.

Agent’s Rights and Awareness:

• Right to Act Until Revocation: The agent retains full authority to act under the POA until the principal properly revokes or terminates it.
• Recognition of Termination Conditions: The agent must be aware that the POA ends automatically upon the principal’s death unless it is a notarized, durable POA. It also ends when the parties fulfill the stated purpose or when the specified validity period expires.

These rules ensure that both principals and agents exercise their authority safely and in compliance with UAE law.

Poor management of a POA can compromise the rights and responsibilities of both the principal and the agent. Even a valid POA can face challenges if roles, limits, or notarization are unclear.

Common issues include:

• Exceeding Granted Powers: Acting beyond the scope defined in the POA can violate the principal’s legal rights and lead to legal challenges under UAE law.

Solution: Agents must act strictly within the powers explicitly authorized in the POA.

• Invalid POA Due to Improper Notarization: A POA that is not notarized in Dubai or attested by the UAE Ministry of Foreign Affairs if issued abroad may be unenforceable, preventing the agent from exercising authority.

Recommended Approach: Ensure proper notarization or attestation before using the POA.

• Rights Loss on Principal’s Death or Incapacitation: Standard PoAs end automatically upon the principal’s death, which can result in loss of authority.

Solution: Choose a durable POA that clearly states continued authority and is properly notarized.

• Property Transaction Disputes: Agents may face restrictions from authorities, such as the Dubai Land Department, if the POA does not explicitly grant property-related powers.

Recommended Approach: Clearly define property powers in the POA to prevent disputes.

• Fraud or Misuse of Authority: Vague powers or an untrustworthy agent can compromise the principal’s legal rights and expose the agent to liability.

Solution: Clearly outline duties and powers in the POA to prevent misuse.

Protect your PoA rights and responsibilities in Dubai by drafting a clear, notarized POA. SafeLedger assists with professional drafting, notarization, and secure storage to ensure all rights are legally enforceable.

Start your document drafting with a Power of Attorney in Dubai for step-by-step instructions that clearly define both principal and agent rights.