UAE Redefines Legal Adulthood at 18 in Sweeping Civil Law Reform

The UAE has introduced a landmark legal reform by lowering the age of legal maturity from 21 to 18, following the issuance of a new federal decree law updating the Civil Transactions Law. The move represents a major shift in the country’s legal framework and is aimed at empowering young people, supporting entrepreneurship, and modernising civil and commercial relations.

Under the revised law, individuals aged 18 are now granted full legal capacity to manage their financial affairs independently. In addition, those aged 15 may apply for judicial permission to administer their property, marking a significant change to guardianship rules over financial matters. Authorities said the reform strengthens personal autonomy while maintaining safeguards against exploitation or harm.

The updated Civil Transactions Law has been described as the most comprehensive unified civil law issued in the UAE to date. It introduces wide-ranging reforms governing compensation, contracts, insurance, sales, professional activity, and corporate relations, aligning the legal system with contemporary economic and social realities.

Among the most notable changes is a provision allowing diya (blood money) to be combined with additional compensation or Arsh, ensuring full redress for both material and moral damage in cases of death or injury. This amendment resolves long-standing legal ambiguities and enhances protections for victims and their families.

From a judicial perspective, the law expands judicial discretion by allowing courts to rely on the principles of Sharia when no applicable legislative provision exists. Judges may select the solution that best serves justice and public interest without being bound to a specific school of jurisprudence. Sharia principles may also be applied in matters relating to persons of unknown parentage, missing persons, and absentees where no special legislation applies.

The reform also establishes a new legal framework for non-profit companies, regulating their operations and requiring profits to be reinvested in their objectives. This move reinforces the role of non-profits in supporting sustainable development and aligns civil legislation with recent corporate reforms.

In terms of property and proprietary rights, the law reorganises rules governing usufructuary construction rights, requiring official registration of contracts and setting clear obligations for rights holders. It also provides that financial assets located in the UAE belonging to foreigners with no heirs will be designated as a charitable endowment, subject to supervision by the competent authority.

Additional provisions introduce a modern framework for assignment of rights, strengthen protection of possession through preventive legal actions, and adopt clearer legal concepts that reinforce free will in contracts while protecting individuals who require assistance. Courts are empowered to appoint judicial assistants for individuals unable to fully express their will, ensuring their interests are safeguarded.

The law also modernises contractual rules, introducing obligations of disclosure during pre-contractual negotiations and recognising framework agreements to regulate recurring or long-term contractual relationships. These measures aim to enhance transparency, reduce disputes, and lower transaction costs.

With respect to contractual capacity, the law revises the treatment of financial acts by discerning minors, granting guardians and minors clearer rights to seek annulment within defined timeframes. Sales contracts have been updated with stronger protections, extended limitation periods for latent defects, and clearer buyer remedies, including replacement or price reduction.

Further reforms address the sale of disputed rights, prohibiting judges, prosecutors, court officials, and lawyers involved in a dispute from acquiring such rights to protect judicial integrity. Corporate provisions were also modernised, allowing single-person companies, regulating partner withdrawal and liquidation, and aligning civil company rules with commercial legislation.

Overall, the new Civil Transactions Law represents a comprehensive overhaul of the UAE’s civil legal framework, balancing individual empowerment with legal certainty, and reinforcing protections across civil, commercial, and professional activities in line with the country’s long-term development goals.