The UAE is gearing up to be a totally transformed legal landscape with the new Federal Decree-Law No. 25 of 2025 to raise the age of majority in UAE. The new Civil Transactions Law will enter into force on 1st of June 2026.
In this regard, this change will bring the UAE in line with international laws and introduce new legal independence to young adults at a much earlier age. The move is also being seen as part of the nation’s greater efforts to empower young people, encourage entrepreneurship, and revise their civil codes.
The law will have real consequences for individuals, their businesses and their families.
UAE to Officially Lower Legal Age to 18 from June 2026
UAE civil law will stop defining a person as a minor from age 18 onward from June 2026. This allows young adults to sign legal agreements without parent permission, enabling them to choose whether to agree to any proposal.
They will be able to enter into tenancy arrangements, purchase services, handle their finances and be fully responsible for civil issues. The law also allows them to sue and represent themselves in court.
Banks and financial institutions should modify their systems to lift the final guardianship restrictions for ages 18 – 20 customers.
Full Legal Independence Begins at 18
These providers will help foster UAE’s rapidly expanding startup ecosystem, according to the new law, which lets UAE nationals at a young age start their own businesses.
A commercial license will now be granted to an 18-year-old person without the need for parents permission, as will any business contracts, institutional arrangements, or investments.A commercial license will no longer require the authorization of the parents and so will be granted to an 18-year old person. A business contract, or institutional arrangement, or an investment no longer requires authorization by a parent.
Teens ages 15 and up will also have access to an “apprentice adulthood” concept in the law. In some instances, minors may want the court’s permission to deal with funds prior to age 18, particularly with regards to entrepreneurial and/or innovative endeavors.
Major Changes for Wills and Inheritance
All families and those who are living abroad are urged to carefully check their inheritance and estate planning before the legislation becomes effective.
Some inherited assets were before now kept in guardianship until the age of 21 for beneficiaries. In the new system, assets are transferred legally to the beneficiary when he or she reaches the age of 18.
That could make guardianship arrangements in existing wills void three years prior to when previously thought. If you wish to hold on to your inheritance past age 18, you’ll likely have to make this clear through your legal will.
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New Opportunities for Young Entrepreneurs
Businesses in the UAE might also have to update their customer guidelines, induction processes and contracts.
Removing the lack of legal capacity defense to minors’ contracts could make it more difficult for businesses to avoid holding them. Digital platforms, financial technology companies and telecom are anticipated to eliminate parental authorization needs for users aged 18 and older.
The upgrade will make it easier to conduct business, while providing a more business-friendly and global environment, according to legal experts.
Why is the UAE Making This Shift?
Shifting the legal age downwards shows UAE’s commitment to modernising the legislative framework and advancing the UAE youth at an earlier age.
The youth today are more financially savvy, hyper-connected and professionally engaged at a younger age than the previous generation. The law also helps pave the way to the nation’s vision of fostering innovation, independent thinking and growth of startups among the residents of Generation Z.
FAQs
What is the effective date of the new law in the UAE for the age of majority?
The new Civil Transactions Law will enter into effect on June 1, 2026.
What’s the legal age in the UAE?
This will also cut down the legal age of majority to 18 years.
Are there 18 year old people in the UAE that are allowed to enter contracts?
Yes. The age of 18 will become the age at which young people can enter into tenancy agreements, service contracts and business documents without their parents’ interference.
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