Types of Powers of Attorney in the UAE

It is a common practice in the UAE for individuals (known as ‘principals’) to grant powers of attorney to trusted persons (known as ‘agents’) to carry out transactions on behalf of the principals. Given the wide variety of powers that are included in powers of attorney, it is important to understand the types of powers of attorney that are used in the UAE.

Following are the types of powers of attorney commonly used in the UAE:

1. General power of attorney
2. Special power of attorney

This post aims to explain the fundamental differences between these two (2) types of powers of attorney.

General Power of Attorney

A general power of attorney is used in the UAE in situations where a principal usually requires the agent to carry out any and/or all of the following actions:

• Purchase and manage real estate property.
• Represent the principal before ministries, government departments, and telecom and utility service providers.
• Incorporate legal entities.
• Purchase shares in legal entities.
• Sign contracts and other documents.
• Purchase vehicles.
• Represent the principal in legal issues and hire lawyers.

Clearly drafted general powers of attorney with the above-mentioned broad powers are typically accepted by third parties and government departments in the UAE.

Special Power of Attorney

In some specific cases, a third party or a government department relying on a power of attorney may request the agent to provide a special power of attorney specifying the details of the transaction in which the agent is representing the principal. These types of cases typically include:

• Sale of real estate property.
• Sale of shares in legal entities.
• Sale of vehicles.
• Inheritance matters.
• Property disputes.
• Consent by guardian for marriage.
• Consent for travel of minor child (below 21 years) with a person other than the legal guardian.

In each of these cases, it important to outline the details of the subject matter of the power of attorney in full detail. For example, all details of the real estate property should be provided (as per the title deed) on the power of attorney involving the sale of real estate. Without the specific details included in the power of attorney, the power of attorney may not be accepted by the third parties and the Land Department.

If you already have a draft of the power of attorney, our posts on the process of signing a power of attorney in the UAE and outside should help you understand the process of signing the powers of attorney.

In conclusion, it is important for you to carefully examine the purpose of the power of attorney and decide which type of power of attorney will eventually serve the purpose. The power of attorney should be drafted in a manner that it is acceptable to third parties and government departments at the relevant time. Any error in drafting can result in unpleasant surprises and loss of time and expense involved in preparing and notarizing the power of attorney.