UAE resets adulthood threshold under civil law reforms

Lowering the legal age of adulthood to 18 has been written into a far-reaching overhaul of the country’s civil legal framework, a step the authorities say is intended to align civil capacity with contemporary economic and social realities while widening opportunities for younger people to participate fully in the economy.

The change is embedded in a newly issued Federal Decree Law promulgating the Civil Transactions Law, which establishes a consolidated framework governing rights, obligations and civil dealings across the federation. The legislation replaces and updates earlier provisions, aiming to provide greater clarity and consistency in civil relations that affect individuals, families and businesses operating in the country.

Under the revised framework, a person is deemed to have full civil capacity at the age of 18, enabling them to independently enter into contracts, manage assets, assume obligations and pursue civil claims, subject to specific safeguards set out elsewhere in the law. The shift brings the civil definition of adulthood into line with international norms and with economic realities in which younger citizens and residents are increasingly engaged in employment, entrepreneurship and financial decision-making.

State media described the reform as a milestone in the legal modernisation agenda pursued by the federation over the past decade. According to the official account, the law seeks to reduce ambiguity in civil dealings, harmonise judicial interpretation and create a more predictable environment for economic activity, while balancing individual autonomy with protections for vulnerable parties.

Legal practitioners note that the change resolves a long-standing discrepancy between civil capacity and the practical responsibilities borne by many young people. In sectors such as technology, retail and the gig economy, individuals below their early twenties frequently engage in work arrangements, digital commerce and investment activities that require legal certainty. By explicitly recognising full civil capacity at 18, the law reduces reliance on guardianship mechanisms for routine transactions, streamlining processes for both individuals and counterparties.

Beyond the age threshold, the Civil Transactions Law introduces a more integrated structure for civil obligations, property rights, contracts and liability. It consolidates principles that were previously scattered across multiple statutes and judicial precedents, providing courts with clearer guidance and reducing the scope for inconsistent rulings. Officials have framed this as part of a broader effort to enhance the rule of law and bolster confidence among investors and residents.

Economists and policy analysts see the reform as consistent with labour-market and demographic trends. A growing cohort of young adults is entering the workforce earlier, often with specialised skills in digital services, finance and creative industries. Recognising their legal capacity supports entrepreneurship and financial inclusion, allowing them to open businesses, access credit and manage earnings without procedural barriers that can slow economic participation.

At the same time, the law retains safeguards designed to prevent exploitation or imprudent decision-making. Provisions relating to incapacity, undue influence and unfair contractual terms remain applicable, allowing courts to intervene where consent is compromised or obligations are manifestly imbalanced. This balance reflects an attempt to expand autonomy while maintaining protections that underpin social stability.

Judicial authorities are expected to issue interpretive guidance to ensure uniform application across courts, particularly during the transition period as existing contracts and disputes are assessed under the new framework. Lawyers anticipate a period of adjustment as parties revisit standard contracts and compliance procedures to reflect the updated definition of civil capacity.

The reform also carries implications for education, family arrangements and financial services. Banks and service providers will need to align account-opening policies and credit assessments with the revised age threshold, while families may reassess the timing of transferring financial responsibilities to younger members. For expatriate residents, the clarity offered by a unified civil framework is expected to simplify cross-border dealings and estate planning.