Something quietly shifted on June 1, 2026, that will affect nearly every family living in the UAE, whether they realise it yet or not.
Federal Decree-Law No. 25 of 2025, the UAE’s landmark new Civil Transactions Law, came into force. Buried within its sweeping overhaul of a legal framework that had stood since 1985 is a change that sounds deceptively simple: the age of legal adulthood in UAE has been lowered from 21 to 18.
Three years. That gap does not sound dramatic until you consider what it means for a parent whose 19-year-old can now sign a lease, open a loan, register a company, or manage an inheritance without asking anyone’s permission. Or an expatriate family whose carefully drafted will suddenly needs to be revisited. Or a young adult who has just discovered they are fully legally accountable for every financial decision they make.
This is not a distant policy change. It is in effect right now, and if you have not taken stock of how it touches your family, your estate plans, or your financial arrangements, the time to do that is today.
Understanding the Change: What the Law Actually Did
The Civil Transactions Law replaced the UAE’s 1985 Civil Code in its entirety. The government described it as a “pivotal legislative milestone,” and that is not an overstatement. It is the most comprehensive overhaul of UAE civil law in four decades.
At its heart, for individuals and families, is the reduction of the age of majority from 21 lunar (Hijri) years to 18 Gregorian years. That switch matters beyond the number itself. The previous threshold was measured in the Islamic Hijri calendar, where 21 lunar years translates to roughly 20 years and four months in the Gregorian calendar most of the world uses. The new threshold is a clean 18 years by the international standard, aligning the country with the vast majority of countries globally.
What does full legal majority actually mean in practice? From the age of 18, a person in the UAE is now presumed to have complete civil legal capacity. They can:
- Sign and enter binding contracts independently
- Open bank accounts, apply for credit, and take on loan agreements without parental co-signing
- Buy, sell, or manage property
- Register and operate a business
- Initiate or defend civil court proceedings
- Manage personal assets and inherited wealth
- Enter into lease agreements for apartments, vehicles, or commercial premises
None of these actions require parental approval anymore. And none of them can be easily undone by claiming youth or inexperience after the fact.
Why This Reform Was Inevitable?
This change did not arrive out of nowhere. The UAE has been steadily harmonising its legal thresholds across sectors for years. The Traffic Law reduced the minimum driving age to 17. The Commercial Transactions Law already lowered the age for engaging in trade to 18. Banks across the country have, in practice, been allowing 18-year-olds to open independent accounts for some time.
The new Civil Transactions Law simply brought the foundational framework into line with all of these developments, creating a coherent and consistent legal landscape rather than a patchwork of different thresholds across different sectors.
The broader intent is clear: the UAE wants young people participating more actively in its economy. Lowering the age of legal capacity removes bureaucratic friction for young entrepreneurs, students, and professionals, and positions the country as a forward-looking, youth-friendly jurisdiction for investment and business activity.
That is a sound policy objective. But policy objectives and personal consequences are two different things, and for families with children in or approaching the 18 to 21 age bracket, the personal consequences are immediate and concrete.
What This Means for Parents and Families?
This is where the reform moves from the abstract to the very real.
If you are a parent of a child who has turned 18 or is approaching that age, your legal relationship with that child’s financial and civil decisions has changed significantly. The automatic oversight that UAE law previously gave you over a child’s contractual and financial affairs between 18 and 21 no longer exists.
Your 18-year-old can now rent an apartment, sign up for a credit card, enter a commercial agreement, take on debt, or make investment decisions without consulting you and, more importantly, without needing your consent.
For most families, this is a natural and welcome step. For families where a child is not yet financially mature, where complex assets are involved, or where estate planning has been structured around the previous age threshold, it raises urgent questions.
Parents who have wills or guardianship arrangements in place should pay particular attention. Legal experts across the UAE have been consistent in flagging this issue since the law was announced. If your will specifies that assets pass to children once they reach 21, or that guardianship arrangements remain in place until that age, those provisions may no longer reflect the legal reality or achieve what you intended. A child who is legally an adult at 18 has the capacity to manage or access their inheritance at that age, which may not align with what you had planned.
What It Means for Expatriate Families?
For the large and diverse expatriate population, the implications have an extra layer of complexity.
Expatriate families often operate across multiple legal jurisdictions simultaneously. A family based in Dubai may hold assets in the UK, have a will registered in one or more countries, have children studying abroad, and be subject to inheritance rules in their home country that differ from UAE law. The new Civil Transactions Law adds a fresh variable to that already complex picture.
The law also introduced updated succession provisions relevant to expatriates. Under the new framework, financial assets belonging to a foreign national who dies without heirs will be designated as a charitable endowment. This provision, alongside the age of majority change, underscores how important it is for expatriates with UAE-based assets to have a current, properly registered will in place, one that reflects the realities of both UAE law and the laws of any other jurisdiction they operate within.
For any expatriate family that has not reviewed its estate planning documents since the law came into effect, that review is now overdue.
What It Means for Young Adults?
For the 18 to 21 age group, this reform is genuinely exciting. The independence it confers is real and meaningful.
Students who move to the UAE for university can now handle their own affairs without requiring parental paperwork at every turn. Young professionals starting their careers can access financial products, sign employment contracts, and rent their own homes without jumping through administrative hoops. Entrepreneurs in this age group can incorporate companies, enter commercial agreements, and manage business finances fully independently.
The opportunity is genuine. So is the accountability.
Legal professionals have been unanimous in noting the other side of this independence: once you sign a contract, take on a debt, or make a financial commitment as a legal adult, you are bound by it. Age is no longer a defence. An 18-year-old who enters a binding commercial agreement that later goes wrong cannot argue that their youth diminishes their responsibility. The courts will treat them as a full adult, because the law now says they are one.
Financial literacy, an understanding of contractual obligations, and access to good legal advice before making significant decisions have never been more important for young people.
Estate Planning: What Needs to Be Reviewed Right Now?
Whether you are a UAE national or an expatriate, if you have any of the following in place, a legal review is not optional; it is necessary:
- Existing wills with age-based provisions. Any document that references 21 as the age at which a beneficiary receives or controls assets needs to be examined. The legal context in which that provision was written has changed.
- Trusts and guardianship structures. Arrangements designed to protect assets until a child reached adulthood under the old definition may now operate differently than intended.
- Business succession planning. If family business documents, shareholder agreements, or corporate governance structures reference the age of majority, those provisions need to be brought into line with the new threshold.
- No will at all. If you are an expatriate with assets and no registered will, the risk of dying intestate under law has always been significant. The new succession provisions make that risk more acute, not less.
Frequently Asked Questions
1. Does this law apply to non-Muslim expatriates as well?
Yes. The Civil Transactions Law governs civil legal capacity for all persons in the UAE, regardless of nationality or religion. The reduction in the age of majority to 18 applies across the board. Separate considerations apply for personal status matters, inheritance, and family law for non-Muslims, where different legal frameworks may be relevant depending on the jurisdiction and the specific issue involved. Getting advice tailored to your nationality, religion, and asset profile is important.
2. My child is 19. Does this law apply to them retroactively?
Yes. From June 1, 2026, anyone who has already reached the age of 18 is treated as having full legal capacity under the new law. If your child is 19 or 20 right now, they are a legal adult for all civil purposes in the UAE, effective immediately.
3. I have a will that says my children receive their inheritance at 21. Is it still valid?
The will as a legal document may remain valid, but the clause referring to age 21 as the threshold for adulthood no longer reflects the law. Your child can now assert full legal capacity at 18, which could affect how an inheritance is managed or distributed. A review with a qualified expert family lawyer is strongly recommended to ensure your will still does what you intended it to do.
4. Can an 18-year-old now set up a company in the UAE without a parent?
Yes. Under the new law, an 18-year-old has full civil legal capacity and can engage in business registration and commercial activity independently. This aligns with the position already adopted under the Commercial Transactions Law and with broader UAE government policy to encourage youth entrepreneurship.
5. What happens if a minor between 15 and 18 wants to manage their inherited assets?
The new law includes a provision under which minors from the age of 15 may, under strict conditions and with judicial oversight, be permitted to manage personal or inherited assets. This is subject to court approval and is not automatic. It requires a legal application and a judge’s determination that the minor has the maturity and capacity to manage those assets responsibly.
6. Should I update my guardianship arrangements for my children?
If your guardianship documents were drafted before June 2026 and contain provisions that kick in or expire at age 21, yes. The legal meaning of adulthood has changed, and your documents should reflect the world as it now stands. This is particularly important for parents of children with complex inheritance situations, business interests, or significant asset holdings.
7. What should I do if I am a young adult who has just become a legal adult under this law?
Understand what full legal capacity means before acting on it. Contracts you sign are binding. Debts you take on are your responsibility. Financial products you enter are enforceable against you. Take the time to seek proper legal and financial advice before making any significant civil, commercial, or financial commitment, particularly in the early months as you adjust to operating with full adult legal status.
The Law Has Changed. Your Plans Should Reflect It!
The lowering of the age of legal adulthood to 18 is one of the most practically significant legal changes to affect families in the UAE in a generation. It is not a future reform or an upcoming deadline. It is the law as of June 1, 2026, and it is already shaping the legal and financial reality of families across the country.
For parents, the window to act is now, before an outdated will creates a probate dispute, before a guardianship arrangement fails to achieve its purpose, or before an estate plan built on the old threshold delivers the wrong outcome.
When it comes to navigating changes of this magnitude, the quality of the legal advice you receive matters enormously. Diana Hamade, founder of Diana Hamade Attorneys at Law in Dubai, is ranked Band 1 by Chambers and Partners for private client and family law in Dubai for high-net-worth individuals across the UAE and MENA, the only firm of its kind to hold that distinction for six consecutive years. As the first female Fellow of the International Academy of Family Lawyers in the Middle East, a registered DIFC Wills draftsperson, and a recognised expert in both Sharia and civil law, Diana brings a depth of expertise in succession planning, estate structuring, and family law that is unmatched in the region.
If the new Civil Transactions Law has raised questions about your will, your family’s estate plan, or your child’s legal position, this is the firm to call. Reach out to Diana Hamade Attorneys at Law today for a consultation that will give you clarity, confidence, and the peace of mind that your family’s future is properly protected.
This article is intended for general informational purposes and does not constitute legal advice. For advice specific to your personal circumstances, please consult a qualified UAE-licensed legal professional like Diana Hamade.