UAE Set to Lower Age of Majority From 21 To 18 Under New Civil Transactions Law Starting June 1

The UAE will lower the age of majority from 21 to 18 under a new Civil Transactions Law set to take effect on June 1, introducing wide-ranging changes to legal capacity, contracts, guardianship matters, compensation claims and civil dealings.

Federal Decree-Law No. 25 of 2025, published in the Official Gazette in October 2025, revises several provisions governing civil transactions and legal rights in the country.

Under the new law, individuals will gain full legal capacity at the age of 18, allowing them to independently manage their legal and financial affairs, enter into contracts and carry out civil transactions without requiring guardianship approval.

The change reflects a broader legislative shift in the UAE towards recognising legal and financial independence at an earlier age. Recent reforms have already lowered age thresholds in areas such as driving, banking and commercial activities.

Another reported amendment relates to the management of personal and inherited assets by minors. Under the proposed provisions, minors as young as 15 may be permitted to manage certain assets with court approval and judicial oversight.

If implemented, the move would allow limited financial autonomy for younger individuals while retaining safeguards designed to prevent misuse or exploitation.

The law is also expected to introduce clearer rules surrounding the legal validity and enforceability of contracts. Certain agreements may require formal registration to be legally recognised, in line with existing requirements for tenancy contracts, property transactions and employment agreements.

Fresh provisions are also expected to regulate conduct during pre-contract negotiations, including disclosure obligations between parties, particularly in commercial transactions where unequal access to information may exist.

The amendments further revise rules governing sale contracts, including sales conducted through samples or models, protections for people with limited legal capacity in real estate transactions, and liability for hidden or latent defects in goods and property.

Under the proposed framework, buyers may be granted stronger legal remedies when purchased goods or property fail to meet agreed standards. This could include the right to reject defective items, request replacements, accept goods with reduced prices or seek compensation for defects.

The law may also extend limitation periods for certain defect-related claims, potentially giving buyers more time to pursue legal action in disputes involving hidden defects.

Another major change concerns compensation in cases involving death or personal injury. Courts may be empowered to award additional compensation for material and moral damages beyond existing compensation mechanisms, including blood money provisions, where harm suffered is not considered fully addressed.

The new law is also expected to clarify how the assets of expatriates are handled if a person dies in the UAE without leaving a will or legal heirs.

Under the reported provisions, financial assets left without legal claimants could be transferred into charitable endowments under official supervision to ensure proper management and allocation.

The amendments are aimed at strengthening individuals’ ability to manage their legal and financial affairs while maintaining safeguards to protect vulnerable persons and ensure fairness in civil transactions, according to details published on the UAE’s official legislation platform.

 

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