The UAE has officially lowered the age of majority from 21 to 18 under a sweeping new Civil Transactions Law, a move that significantly reshapes how young people engage with contracts, finances and legal responsibilities across the country.
Under the updated law, anyone aged 18 is now considered a legal adult, aligning the UAE with international standards and removing long-standing practical challenges linked to age-based legal capacity. Previously, individuals were only considered legally competent at 21 lunar years.
The change is part of the largest federal legislative update in the UAE, designed to modernise civil law, simplify legal references and eliminate overlap with newer special laws.
More control for younger residents
One of the most notable updates empowers younger individuals to manage their own financial affairs earlier. While minors previously needed to be 18 to seek court authorisation to manage assets, the new law lowers that threshold to 15, provided judicial approval is granted.
The shift is intended to support youth entrepreneurship, early financial literacy and responsible asset management, especially for young people involved in business, inheritance matters or investments.
Why the law matters
The Civil Transactions Law serves as the backbone of most federal legislation in the UAE. It governs contracts, obligations, legal acts and civil rights between individuals and entities, making these changes far-reaching for residents, families and businesses alike.
The new framework adopts clearer legal language, practical interpretations and unified time references by moving fully to the Gregorian calendar, replacing lunar-year calculations that often caused confusion.
Stronger protections, clearer contracts
Beyond age-related changes, the law introduces provisions that strengthen legal certainty and reduce disputes. These include clearer rules on contracts, pre-contractual negotiations and disclosure obligations, requiring parties to share essential information before agreements are signed.
Judges are also granted broader discretion when applying Sharia principles, allowing greater flexibility in achieving justice rather than being confined to a single school of jurisprudence.
Compensation, companies and insurance updates
The law allows courts to combine blood money or assessed compensation with additional damages where material or moral harm is not fully covered. It also establishes updated legal frameworks for nonprofit and professional companies, supporting sustainable development and modern business practices.
Insurance regulations, including takaful, have been refined, while rules governing real estate sales, disputed rights and works contracts have been updated to better balance interests and reflect real-world transactions.
Lowering the age of majority to 18 signals a major shift in how the UAE views youth, marking a new chapter for the country’s next generation.
