The United Arab Emirates has introduced a landmark reform to its civil law framework by reducing the age of legal majority from 21 years to 18 years under Federal Decree-Law No. 25 of 2025 promulgating the new Civil Transactions Law. Effective from 1 June 2026, this amendment aligns the UAE's legal system with international standards governing adulthood and legal capacity.
Key Changes
Under the previous legal framework, individuals attained full legal capacity upon reaching 21 years of age. The new law establishes that a person acquires full legal capacity upon completing 18 Gregorian years, enabling them to independently exercise their civil rights and undertake legal acts without the need for a guardian or representative.
As a result, individuals aged 18 and above are now entitled to:
- Enter into contracts and agreements independently.
- Open and operate bank accounts without parental or guardian approval.
- Establish and manage businesses and commercial activities.
- Own, manage, and dispose of assets and property.
- Initiate and defend legal proceedings in their own name.
- Conduct civil, financial, and commercial transactions independently.
Impact on Businesses and Financial Institutions
The amendment is expected to have a significant impact on organizations that engage with young adults. Banks, businesses, educational institutions, landlords, and service providers will need to review and update their contractual, compliance, and operational procedures to recognize individuals aged 18 and above as fully competent legal persons.
The reform also supports entrepreneurship by enabling young adults to participate more actively in business and investment activities without requiring guardianship-related approvals that were previously applicable.
Implications for Families and Estate Planning
The reduction in the age of majority carries important implications for guardianship arrangements, succession planning, trusts, and wills. Families and estate planners should review existing structures and legal documents that reference the previous age threshold of 21 years to ensure compliance with the updated law.
Furthermore, the legislation reduces the age at which minors may apply for court authorization to manage their assets from 18 Hijri years to 15 Gregorian years, encouraging responsible financial participation under judicial supervision.
Advancing the UAE's Legal Framework
This legislative reform forms part of the UAE's broader efforts to modernize its legal system, enhance legal certainty, and promote greater economic participation among young adults. By harmonizing civil law provisions with contemporary commercial, labour, and social legislation, the UAE continues to strengthen its position as a progressive and business-friendly jurisdiction.
Conclusion
The reduction of the age of legal majority from 21 to 18 represents a significant development in the UAE's legal landscape. By granting full legal capacity at an earlier age, the UAE empowers young adults to participate more actively in economic, commercial, and legal affairs while ensuring appropriate safeguards remain in place for minors and vulnerable individuals.