General vs Special Powers of Attorney in the UAE, When Each Format is Required

Not all powers of attorney are treated the same way in the UAE. Some give wide authority to manage ongoing affairs, while others are limited to a single transaction or decision. Using the wrong format can delay a property transfer, block a bank instruction or force documents to be reissued at short notice. UAE law recognises two main types: a general power and a special power. This article explains the difference between them and when each format is required.

Powers of attorney in the UAE

The UAE doesn’t treat all powers of attorney as interchangeable. Authorities look closely at the wording and scope of the authority granted. If the document is too broad for a specific transaction or too narrow to cover the required step, it may be rejected. That is why the distinction between a general power of attorney and a special power of attorney is practical rather than theoretical.

What a general POA covers

A general POA gives the agent wide authority to act across a broad range of legal and commercial actions. It’s designed for ongoing management rather than a single task. The agent may be authorised to deal with bank accounts, sign contracts, manage companies, lease property and handle routine government procedures.

In practice, it’s often used when someone will be outside the UAE for an extended period or when day to day administration needs to be delegated. Business owners sometimes rely on this format to allow a trusted manager or family member to handle operational matters while they’re overseas. Individuals may use it to cover personal administration such as renewing licences or managing utilities.

Despite its breadth a general POA isn’t unlimited though. UAE authorities and counterparties often read the document narrowly. If a transaction is considered exceptional, such as selling real estate or gifting shares, a general power may still be rejected unless the wording expressly refers to that act. Banks in particular tend to apply their own internal rules and may require additional confirmations even where a general authority exists.

What a special POA covers

A special POA is limited to a defined act or series of acts. It names the specific transaction and often the specific asset involved. For example it may authorise the sale of a named property, representation in a particular court case or signing documents for a single company incorporation.

This format is commonly required where the act has long-term legal or financial consequences. Property transfers, share sales, mortgage registration and litigation steps typically fall into this category. Authorities want clear evidence that the decision has been considered and approved in advance. A narrow and precise document provides that assurance.

Special powers of attorney are also preferred where there may be conflicts of interest or heightened risk. By limiting the authority, control is retained over other aspects of affairs. Once the transaction is completed, the authority effectively falls away without the need for formal revocation.

When a general power is sufficient

A general POA is usually sufficient for administrative and repeat actions that don’t permanently change ownership or legal position. Examples include renewing trade licences, dealing with immigration files, managing employment contracts and handling routine banking instructions. It can also cover ongoing company management where no disposal of shares or assets is involved.

That said, acceptance depends on the counterparty. Even for routine actions, some banks and free zone authorities insist on specific wording. If the general power is drafted too loosely or uses non standard language, it may be challenged. Careful drafting at the outset reduces delays later.

When a special power is required

A special POA is required whenever the transaction is specific, irreversible or closely regulated. Real estate sales and purchases almost always require a special authority that identifies the property and the nature of the transaction. Court proceedings require a document that refers to the particular case and the court involved. Share transfers and amendments to constitutional documents often require similarly targeted authority.

Using a general power in these situations can lead to rejection at the final stage, which is costly and frustrating. In some cases a new document must then be issued from overseas, involving consular notarisation and legalisation. Planning the correct format from the start avoids that outcome.

Drafting and formalities

Whether general or special, the drafting must reflect UAE practice. Vague or imported templates rarely work well. The language should be clear, specific and consistent with how local authorities describe transactions. Translation quality is critical, as Arabic text prevails in case of inconsistency.

Notarisation is another key point. UAE based powers are notarised before a local notary. Overseas powers must usually be notarised in the home country, legalised and then attested for use in the UAE. Timing and sequencing of these steps often affect transaction schedules.

Revocation and expiry

A power of attorney does not last indefinitely by default. Some are issued with a fixed term. Others remain valid until revoked. Revocation must usually follow the same formality as issuance and notice should be given to relevant parties. In the UAE, death or loss of legal capacity also ends the authority, even if this is not stated in the document.

Choosing the right approach

The choice between a general and a special power of attorney is about control and certainty. General powers offer convenience but may fall short for high value or regulated actions. Special powers provide clarity but require more planning and precision. Many clients use a combination, relying on a general authority for routine administration and issuing special authorities as needed for major transactions.

How POA UAE can help

At POA UAE, we advise on which format is appropriate for each situation, helping avoid delays caused by documents that are either too broad or too narrow. We draft powers of attorney with the right scope, duration and level of detail so they reflect UAE practice and the specific transaction involved.

We also manage notarisation, attestation and translation, and we work with advisers to make sure the authority granted is recognised by banks, registrars and government authorities. For tailored support, contact us at info@poauae.com.