POA or Power of Attorney is known as a legal document that provides an individual which can either be the agent of the attorney-in-fact, the access to power for acting in behalf of another person or the principal. The authority of the agent can be diverse- broad legal authority or a limited amount of authority for taking the decisions regarding the property, finance and medical care of the principal.

In a typical situation, Power of Attorney is used when the principal is suffering from an illness or is disabled. Other cases include the inability of the principal to be present in times such as signing legal documents for making any kind of financial transaction.

A Power of Attorney ends in cases when the principal dies or is revoked by the principal itself. A court is also capable of dissolving the POA. In case the agent for a particular principal is the spouse and they undergo a divorce, the agent does not hold the power to perform any of the responsibilities.

How Power of Attorney functions in UAE?

It is important to keep in mind that Power of Attorney functions differently in different nations and states. Hence the procedures vary according to the state laws.

United Arab Emirates has emerged as the hub for the major businesses in the world owing to the state-of-art infrastructures for business as well as quality of life. Hence people from all over the world, workers and businessmen chose UAE for setting up their business. In such instances, one of the commonly used document is power of attorney. Power of Attorney is not just chosen by businesses, but also individuals for meeting their daily needs.

When it comes to UAE, there is a difference between a personal power of attorney and a business power of attorney. As stated by various law firms in UAE, individuals can use two kinds of powers of attorney in UAE:

General power of attorney

In UAE, a general power of attorney is authorized as an agent for acting in behalf of an individual or principal in numerous situations. The power of the agent is broad when it comes to handling the affairs for the principal.

Special power of attorney

The agent when allotted with special powers of attorney, can only act as the authorized person in specific situations.

For companies, the power of attorney are of two types:

General Manager power of attorney

In this case, it is the owner(s) of the company who granted the power of attorney to the general manager of the company so that he or she can handle the daily affairs of the organisation. Specified transactions are also listed by the owner for the manager so that the process of undertaking is smooth and the operations are not affected.

Special power of attorney

When a special power of attorney is taken into consideration by a company, the POA is allotted to either an employee, or even a third party. The situations are very specific where the power of attorney can exercise their powers such as a specific transaction namely signature of a contract or selling an asset.

Process of signing the power of attorney

United Arab Emirates follow a particular procedure for signing the power of attorney:

Using a bilingual format, the power of attorney is prepared (English and Arabic). This is important as Arabic is the official language of UAE. There is also a possibility for the power of attorney to be prepared just in Arabic, however it is meant for individuals who speak Arabic.

The power of attorney needs to be in three originals that are to be signed at the Notary Public’s office since it is the Notary Public whose works is to register the POA. After the registration, they return two of the originals to the principal.

However, in order to validate the power of attorneys that have been executed outside UAE, a much more complex process needs to be followed. In such cases the UAE embassy is involved. It is mandatory to have the agreement to be signed in the presence of the Notary Public followed by attestation of the foreign office in the country. Only then it can be taken for a legalization to the UAE embassy.

Author's Bio: 

Adeel Mohammed is an international legal expert with over 20 years of experience in working as an expert in various intricate and high-profile cases on financial crimes.
Having spent his formative years in some of the most prestigious and credible legal organizations across the globe, Adeel has also been a master public speaker and has delivered several talks on white-collar crimes and how to fight them.
He has also authored several books educating people on law and governance. Being a legal expert, he practices authority over the subject and his aim is to make legal services available and affordable to all.