A new UAE civil law formally establishing 18 as the age of adulthood and extending greater financial freedoms to young people in the country comes into effect today, Monday, June 1, 2026.
The Civil Transactions Law lowers the age of majority, when a person is legally defined as an adult, from 21 lunar years to 18 Gregorian years. When first announcing the law on January 1, the government said the switch was made to align with prevailing comparative legal systems, describing the move as a pivotal legislative milestone.
What the Civil Transactions Law Means for Personal Finance
The updated legislation is focused largely on financial matters, designed to support entrepreneurship and youth participation in economic activity. Under the new rules, young people gain extended financial freedoms without requiring approval from a legal guardian. This allows individuals who are 18 to enter into contractual agreements, secure bank loans, buy and sell properties independently, and register businesses.
The reforms also provide financial pathways starting from age 15. At this age, minors can seek judicial authorisation to manage their assets.
Legal Experts Highlight New Responsibilities
Legal professionals note that the transition brings both opportunity and accountability. Young adults will now face the full legal consequences of their financial decisions.
A young individual who reaches the age of 18 will be able to enter into contracts without the need of a guardian, sell a property without court permission and manage shares in an estate without being represented by a guardian, while also placing full legal and financial responsibility on their decisions.
— Sheikha Bu Humaid, senior associate in the dispute resolution department at Al Tamimi & Company
Dr Hasan Elhais, legal consultant at Amal Al Rashedi Lawyers and Legal Consultants, also stressed that independence means accountability. He noted that if an 18-year-old signs a binding contract or takes on a financial obligation, the decision may no longer be treated as something that can easily be reversed because of age.
Financial Advisors Call for Caution on Debt
While the law opens up direct access to credit cards and loans without guardian involvement, financial experts suggest a measured approach for young adults navigating these options.
Banks will be able to extend credit to young people from age 18, although that is not something I want to see, I really do not want any banks to promote that option, especially credit cards. It would be irresponsible to encourage young adults to take on debt.
— Keren Bobker, senior partner at Holborn Assets
Bobker added that while it is now possible to own property from age 18, few young people are in a position to buy independently. Instead, the change is more likely to result in inheritances going directly into the name of individuals aged 18 to 21, or property being gifted to them.
Broader Legal and Structural Changes
Beyond youth independence, the law introduces several other updates to the legal system. It grants courts broader discretion when referring to the principles of Sharia in cases where an applicable legislative provision is absent.
For foreign residents, financial assets in the UAE belonging to a foreigner with no heirs will now be designated as a charitable endowment. Courts are also empowered to appoint a judicial assistant to support people with reduced capacity to express their will.
Additionally, the law establishes a framework to govern pre-contractual negotiations to ensure fundamental information is disclosed. It permits the combination of blood money with additional damages where death or injury results in material or moral harm. Finally, a dedicated legal framework for non-profit companies is being introduced, requiring them to reinvest profits into their objectives.
Frequently asked questions
What is the legal age of majority in the UAE?
Under the UAE's new Civil Transactions Law, the legal age of majority has been lowered to 18 Gregorian years. This replaces the previous threshold, which defined the age of adulthood as 21 lunar years.
Can an 18 year old sign a contract in the UAE?
Yes. Under the updated legislation, individuals who reach the age of 18 gain extended financial freedoms and can independently enter into binding contractual agreements without requiring approval from a legal guardian.
How old do you have to be to set up a business in the UAE?
Under the new Civil Transactions Law, young people who are 18 years old can independently register businesses and enter into contracts without needing a legal guardian's approval.
Can minors manage assets in the UAE?
Yes, the legal reforms provide financial pathways starting from the age of 15. At this age, minors can seek judicial authorisation to manage their assets independently.
Can an 18 year old buy property in the UAE?
Yes. The new civil framework allows 18-year-olds to buy and sell properties independently, as well as manage shares in an estate without being represented by a guardian.
