A new UAE civil law formally establishing 18 as the age of adulthood and extending greater financial freedoms to young people in the country will come into effect on Monday, June 1.
The Civil Transactions Law will lower the age of majority, when a person is legally defined as an adult, from 21 lunar years to 18 Gregorian years.
A person aged 21 in lunar years would be aged about 20 under the Gregorian system, adopted by much of the world.
The government – when first announcing the law on January 1 – said the switch had been made to align with “prevailing comparative legal systems” and described it as a “pivotal legislative milestone”.
While the new law formally classifies 18 as the age of majority, people of this age are already allowed to marry, take on full-time employment and drive.
The new civil law is focused largely on financial matters and has been designed 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 bring the Emirates into line with international practices.
What does law mean for young people?
One of the key 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.
Under the updated legislation, young people have extended financial freedoms without the 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
What do the experts say?
Sheikha Bu Humaid, senior associate in the dispute resolution department at law company Al Tamimi & Company, previously told The National that the law represented a significant step in affording young people greater responsibility.
“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,” she said.
Other changes include leasing or buying property, managing financial affairs by having direct access to credit cards and loans without the involvement of a guardian.
Call for caution
Keren Bobker, senior partner with financial advisory company Holborn Assets, told The National after the law was unveiled in January that a measured approach was still required.
“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.”
More power, more responsibility
Dr Hasan Elhais, legal consultant at Amal Al Rashedi Lawyers and Legal Consultants, stressed that greater rights also brought more responsibility for young people.
“For young adults, this is a major step towards independence,” he said.
“But independence also means accountability. If an 18-year-old signs a binding contract, opens a business or takes on a financial obligation, the decision may no longer be treated as something that can easily be reversed because of age.”
What other change will law bring?
The new law grants courts broader discretion when referring to the principles of Sharia, in cases where an applicable legislative provision is absent.
Financial assets in the UAE belonging to a foreigner with no heirs shall be designated as a charitable endowment, while courts will be empowered to appoint a judicial assistant to support people with reduced capacity to express their will.
An advanced framework will be established to govern pre-contractual negotiations, ensuring all fundamental information is disclosed.
The law permits the combination of blood money – compensation paid by the guilty party to family members of a person killed – with additional damages where death or injury results in material or moral harm not fully covered by blood money.
A dedicated legal framework for non-profit companies is being introduced, requiring reinvestment of profits into the company’s objectives, supporting sustainable development.
