The UAE’s new Civil Transactions Law, Federal Decree-Law No. 25 of 2025, came into force on 1 June 2026 and introduced important changes to civil rights and obligations.
One of the most significant reforms is the reduction of the age of legal majority from 21 lunar years to 18 Gregorian years. Under Article 84, a person who has completed 18 Gregorian years, possesses mental capacity and is not legally restricted is considered to have full capacity to exercise civil rights.
What can this mean in practice?
Subject to the requirements of other applicable laws, an individual who has reached the age of 18 may generally have the civil capacity to:
- Enter into contracts independently
- Manage money and personal assets
- Buy or sell property and other assets
- Assume contractual obligations
- Bring or defend civil claims
- Appoint another person under a power of attorney
This change is especially relevant to young adults, parents, financial institutions, employers and businesses dealing with customers who are 18 to 20 years old.
Are there exceptions?
Reaching the general age of majority does not remove every age-related restriction. Separate legislation may continue to impose particular requirements for specific activities, professions, licences, financial products or regulated transactions.
Businesses should therefore update contracts, consent procedures and internal policies, while checking whether sector-specific rules continue to apply.
Young adults should also understand that greater legal capacity brings greater responsibility. Signing a contract without reading it carefully may create binding payment, performance or liability obligations.
Before signing a significant contract or managing valuable assets, seek legal advice and understand the consequences of the transaction.