The introduction of a new civil law to establish 18 as the age of adulthood in the UAE will have far-reaching implications for young people, according to several of the nation's leading legal and financial experts.
Previously, a person had to be 21 lunar years old to be defined as an adult in the Emirates. A person aged 21 in lunar years is about 20 under the Gregorian system.
One of the most important aspects of the reforms is that people will have control over their personal finances from the age of 18. The changes also allow people aged 15 to seek judicial authorisation to manage their assets.
What will change for young people?
The move to lower the age of adulthood – also known as the age of majority – essentially means the UAE is recognising 18 as the point at which a person has full legal responsibility and autonomy.
Under the updated legislation – known as the Civil Transactions Law – young people have extended financial freedoms without need for approval from a legal guardian.
- They can enter into contractual agreements
- Secure loans and additional credit from banks
- Buy and sell properties independently
- Apply to register and run businesses from 18
- At 15, minors can seek judicial authorisation to manage their assets
Setting out 18 as age of adulthood across UAE law
The new civil law is focused largely on financial matters and has been made to support entrepreneurship and youth participation in economic activity.
It will, however, serve to align 18 as the age of adulthood across UAE law and shift the Emirates in line with international practices.
“This change unifies the legal age for full capacity, ensures consistency with other national legislation such as juvenile and labour laws, and harmonises civil and criminal responsibility standards, thereby enhancing legal clarity and coherence,” the government media office stated.
Already, people can marry, take on full-time employment and drive at 18. They can also be tried at criminal courts as adults at this age.
Legal experts back move
“Lowering the age of legal adulthood to 18 is a significant and overdue reform,” said Byron James, partner at Expatriate Law. “It recognises the realities of modern life and accords young people legal agency at an age when they are already assuming social and economic responsibility.
“The effects will be felt immediately by families, employers and financial institutions, particularly in relation to contracts, employment and personal legal accountability. Above all, the reform introduces clarity where uncertainty previously existed.
“Taken together with recent legislative developments, this change underscores the UAE’s steady and deliberate modernisation of its civil law framework.”
The move was also welcomed by another leading legal expert who said it would have wide-ranging implications for young people and their families.
“For young people, it improves their independence by allowing them to manage their affairs independently,” said Sheikha Bu Humaid, senior associate in the dispute resolution department at law firm Al Tamimi & Company.
“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.”
Other changes included leasing or buying property, managing financial affairs by having direct access to credit cards and loans without the involvement of a guardian.
Caution urged over expanded financial freedoms
“The main significance [of the reforms] is the full legal age of responsibility is now 18, rather than 21,” said Keren Bobker, senior partner with financial advisory company Holborn Assets.
“That may mean employers are going to be more willing to employ young people from age 18 onwards in the knowledge that it simplifies matters for them as employers.”
Ms Bobker urged caution, though, when it came to the opportunities in terms of credit cards and loans available to 18 year olds.
“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,” she said. “It would be irresponsible to encourage young adults to take on debt.
“It should be possible to own property from age 18, although there will be very few young people in a position to buy property themselves or take on a mortgage to do so. What we are now more likely to see is inheritances going directly into the name of someone aged 18 to 21, or for property to be given to them.
“This also means that some local wills can be written slightly differently, although any properly written existing ones should remain valid. Some people with children aged 18 to 21 may wish to revisit the wording and that is something I have already been contacted about.”
Previously, it was the case that a person had to be 21 to set up a business in the UAE but that, too, has changed under the reforms.
“Eighteen to 21 year olds now have full legal capacity and legal responsibility, in terms of all and any agreements and actions,” Ms Bobker said.
Family fortunes
The reforms will mean there will be changes in many family dynamics, said Ms Bu Humaid.
“For families, it changes their role from being guardians to a more educational role to preparing and guiding children towards responsible decision-making before reaching the age of 18,” she said.
An important aspect is that it reflects international legal practices, said Hend Al Mehairi, an associate in the dispute resolution department with the same law firm.
“This reform is less about changing the law and more about confirming an existing legal reality. By replacing the 21 lunar-year threshold with 18 Gregorian years and establishing a single, clear rule, the legislature enhances legal certainty and reinforces a fundamental principle: adulthood carries both freedom and responsibility,” she said.
“As the amendment comes into force, raising awareness among young adults, families, and institutions about the rights and obligations that attach at 18 will be essential, supported by legal education and financial literacy initiatives.”
Another leading legal expert spoke of the importance of young people being able to apply for judicial authorisation to manage their assets.
“I have seen women who were looking after minors complain to the court that because of the system they had to go through a process of applying for access to pay for school fees, Dewa bills and things for their daily lives – a tedious and time-consuming process,” said Diana Hamade, founder of Diana Hamade Attorneys at Law.
Under traditional Islamic rules, the father is the default financial guardian of a minor, who previously would not have access to their inheritance until the age of 21. Mothers would have to apply to the court for expenses.
