New UAE civil law sets adulthood at 18 and expands youth legal rights
Minors aged 15 can seek court approval to manage personal assets
DUBAI – The United Arab Emirates (UAE) has introduced a landmark federal decree law amending its Civil Transactions Law, formally reducing the age of legal majority from 21 lunar years to 18 Gregorian years.
The reform represents one of the most significant updates to the country’s civil legal framework in decades, reshaping rules on legal capacity, contracts, property and judicial discretion. Officials describe the legislation as a comprehensive and unified reference designed to modernise civil transactions and reflect contemporary social and economic realities.
The new law, which takes effect from January 1, 2026, unifies legal standards across multiple areas of legislation, including labour, juvenile and criminal responsibility. It also introduces reforms affecting minors, contractual negotiations, proprietary rights, compensation, corporate structures and judicial practice, positioning the law as the primary reference for most federal legislation governing civil relations.
New civil law
At the centre of the reform is the reduction of the age of majority from 21 lunar years to 18 Gregorian years. This change standardises the legal definition of adulthood using the internationally recognised calendar system and removes long-standing inconsistencies across UAE legislation.
The law also lowers the age at which a minor may seek judicial authorisation to manage their assets from 18 Hijri years to 15 Gregorian years. A court will assess whether granting such permission serves the minor’s best interests, introducing structured oversight while supporting youth participation in economic activity.
According to the UAE Government Media Office, the shift aligns civil responsibility with labour and juvenile laws, ensuring coherence across the legal system. An individual aged 18 already has the right to work full time, marry and drive, and the reform brings civil capacity into line with these existing rights.
By recognising limited financial capacity for minors under judicial supervision, the law also supports entrepreneurship while maintaining legal safeguards, particularly in matters involving assets and contractual obligations.
How courts decide
From a judicial perspective, the law significantly expands judicial discretion. Where no explicit legislative provision exists, judges may now refer directly to the principles of Islamic Sharia to reach decisions that best achieve justice and public interest, without being bound to a single school of jurisprudence.
Sharia principles may also be applied in the absence of special legislation governing cases involving missing persons, absentees and individuals of unknown parentage, strengthening the judiciary’s ability to respond to evolving societal needs.
Who gets support
The legislation introduces judicial assistance for individuals who lack the capacity to fully express their will. Instead of removing legal capacity altogether, courts may appoint a judicial assistant to support such individuals in acts that serve their best interests, reflecting a more inclusive and protective legal approach.
For minors, financial acts involving both benefit and detriment are now deemed voidable in the minor’s interest rather than suspended. Guardians may seek annulment within one year of knowledge, while minors may apply for annulment within one year of reaching majority.
What else changed
The law updates rules governing proprietary rights, including usufructuary construction rights, which must now be registered with the competent authority to be valid. Financial assets located in the UAE belonging to a foreigner with no heirs will be designated as a charitable endowment under official supervision.
Pre-contractual negotiations are now regulated, requiring disclosure of fundamental information to ensure informed decision making. A framework agreement concept has been introduced to govern long-term or recurring contractual relationships, reducing disputes and transaction costs.
Sale contracts have been modernised, with clearer rules on sale by sample and model, enhanced protection against gross inadequacy in real estate transactions, and stronger remedies for latent defects. The limitation period for defect-related claims has been extended from six months to one year from delivery, unless a longer guarantee applies.
The law also permits blood money or assessed compensation to be combined with additional damages where death or injury results in material or moral harm not fully covered. Corporate provisions have been aligned with commercial legislation, allowing single-person companies, regulating partner withdrawal and liquidation, and introducing a dedicated framework for nonprofit and professional companies.