UAE Civil Transactions Law 2026: Age of Majority Now 18 and What It Means for You

The UAE Civil Transactions Law reform that took effect on 1 June 2026 changes the rules behind almost every contract, sale and inheritance in the country. Federal Decree-Law No. 25 of 2025 lowers the age of majority from 21 to 18, puts a disclosure duty on parties negotiating a contract, and gives buyers longer to claim for hidden defects.

If you sign contracts, sell property, run a family business or live in Dubai as an expatriate, some of these changes affect you directly. This guide explains what changed, who is affected and what to do about it.

What is the new UAE Civil Transactions Law?

The new UAE Civil Transactions Law is Federal Decree-Law No. 25 of 2025, published in the Official Gazette in October 2025 and in force since 1 June 2026. It is the primary reference for most federal legislation governing legal acts and contracts, and it aims to remove duplication with specialised laws enacted in recent years.

Commentators describe it as a qualitative legislative shift rather than a set of technical amendments. In practice, it should make contractual enforcement more predictable and reduce disputes caused by overlapping statutes.

The sections below cover the changes most likely to matter to individuals, property owners and businesses in Dubai.

Age of majority in the UAE is now 18

The headline change is the age of majority. It drops from 21 lunar years to 18 Gregorian years, which aligns civil capacity with the juvenile, labour and criminal responsibility laws. Under the new Article 84, a person who completes 18 Gregorian years has full legal capacity to exercise civil rights.

Other capacity rules also changed:

• Managing assets earlier. The minimum age at which a minor can ask a court for authorisation to manage assets falls from 18 Hijri years to 15 Gregorian years.
• Voidable acts. Financial acts by a discerning minor that carry both benefit and detriment are voidable in the minor's interest. A guardian has one year from knowledge to seek annulment, and the minor has one year after reaching majority.
• Judicial assistant. A court can appoint an assistant for a person who cannot express their will because of incapacity, acting in that person's best interests.

What this means in practice: an 18-year-old can now sign a lease, open a bank account or enter a commercial contract in their own name. Landlords, lenders, schools and employers should update their onboarding forms, guarantor requirements and age-based terms so they match the new threshold.

Contract law changes: disclosure, framework agreements and unforeseen events

The law moves some of the focus from post-contract liability to what happens before signing. Three changes stand out.

1. Pre-contract disclosure. Negotiations now sit within a structured framework that requires parties to disclose the fundamental information the other side needs to make an informed decision. Keep a written record of what each side disclosed before signing.
2. Framework agreements. A new framework agreement lets parties fix the essential terms of a recurring or long-term relationship up front. Suppliers, distributors and service providers with ongoing relationships are the obvious users.
3. Unforeseen circumstances. Courts can restore contractual balance by adjusting or terminating contracts affected by unforeseen events. This matters for long-term supply, construction and lease contracts where costs can move sharply.

Some commentary also suggests that registration may become a condition of validity for certain contracts, as it already is for Ejari tenancies and Dubai Land Department property transactions. This point is described as unconfirmed, so confirm the position for your contract type before relying on it.

Sales, defects and real estate: stronger buyer protection

Buyers and property owners gain clearer rights;
Remedies
Buyers can reject the goods, accept them with a price reduction, or request a defect-free substitute
Time limit
Claim period rises from 6 months to 1 year from delivery, unless a longer guarantee is agreed
Sales by sample or model:
Rules clarified
Real estate and limited capacity:
Stronger protection against grossly inadequate property transactions
Usufructuary construction rights:
Must be registered with the competent authority; parties can set the duration
Possession:
Preventive actions can stop encroachment before damage occurs
Disputed rights:
Judges, prosecutors, court officials and lawyers involved in a dispute cannot acquire the disputed rights; any such acquisition is void

These points reflect published summaries of the law, so confirm them against the Gazette text. For Dubai property owners and developers, the registration requirement and the longer defect period are the two to act on first. Check warranty clauses in sale and purchase agreements and handover documents so they match the new one-year baseline. See our related guide on off-plan property and Oqood registration.

Compensation, company structures and employment contracts

The reform also touches areas that businesses and employers deal with daily.

• Compensation. Where a death or injury causes material or moral harm that blood money or assessed compensation does not fully cover, additional damages can be awarded.
• Company types. The law distinguishes civil and commercial companies by activity and legal form, permits single-person companies, and introduces a regime for professional companies. Non-profit companies must reinvest profits into their objectives, and mudaraba contracts are now regulated independently.
• Partner exits. Procedures for partner withdrawal, company continuation and liquidation are updated.
• Employment and works contracts. Rules for contracts of works and employment are refined. See also our guide to key changes in ADGM employment law.
• Insurance and guarantees. A takaful insurance framework is added, and guarantee rules are reorganised to protect guarantors.

If you are setting up or restructuring a business, read these changes alongside the recent amendments to the Commercial Companies Law. Our Business Setup and Structuring, Corporate and M&A and Employment teams advise on how the laws fit together.

Expats in the UAE: what happens to your assets without a will

For foreign residents, one provision deserves attention. Under the new law, the financial assets in the UAE of a foreigner who dies without heirs are designated as a charitable endowment under the supervision of the relevant authority. Previously, such assets could revert to the state.

The practical lesson is the same as before: do not leave the outcome to default rules. A properly drafted UAE will lets you name your beneficiaries, guardians for minor children and how your Dubai property, bank accounts and business interests pass on.

Courts may also apply Sharia principles where no statutory provision exists, and are not bound to a single school of jurisprudence. That discretion makes clear drafting even more valuable. Our Family Law & Wills team can help you register a will and review your existing arrangements.

UAE Civil Transactions Law compliance checklist

Use this list to find the gaps in your contracts, policies and estate plan.

1. Update age thresholds. Check onboarding forms, tenancy and service agreements, guarantor rules and terms that refer to age 21.
2. Add a disclosure step to negotiations. Record what material information each side has shared before signing.
3. Review defect and warranty clauses. Align them with the one-year latent defect period, and decide whether to offer a longer guarantee.
4. Check long-term contracts. Look at price-adjustment, hardship and termination wording in light of the court's power to rebalance contracts after unforeseen events.
5. Register what must be registered. Confirm registration requirements for usufructuary construction rights and any contract type that now needs it.
6. Revisit company documents. Review shareholder agreements, articles and succession plans alongside the new company-type rules.
7. Make or update your will. This is especially important if you are a foreign resident with UAE assets and no close heirs here.
8. Get the official text reviewed. Several reported details are still described as unconfirmed in public commentary, so have a UAE lawyer read the Gazette version against your situation.

Frequently asked questions

What is the legal age of majority in the UAE in 2026?

The age of majority is 18 Gregorian years under Federal Decree-Law No. 25 of 2025, replacing the previous age of 21 lunar years. The law has been in force since 1 June 2026.

When did the new UAE Civil Transactions Law come into force?

It came into force on 1 June 2026. It was published in the Official Gazette in October 2025.

Does the new law affect existing contracts?

The law's transitional rules should be checked for each contract. As a precaution, review any contract that refers to age 21, relies on a six-month defect period, or was signed with a party aged 18 to 20.

What happens to a foreigner's assets in the UAE if they die without heirs?

Financial assets in the UAE belonging to a foreigner who dies without heirs are designated as a charitable endowment, under the supervision of the relevant authority. A registered will avoids this default outcome.

How long do buyers have to claim for latent defects now?

One year from delivery, up from six months, unless the parties agreed a longer guarantee.

Do I need a lawyer to review my contracts under the new law?

A review is advisable if you have long-term contracts, standard-form terms, property transactions or family-business arrangements. A lawyer can check your documents against the official text and recommend targeted changes.

Get your contracts and estate plan ready for the new law

The new Civil Transactions Law is already in force, and the contracts you signed last year were drafted under the old rules. A short review now costs far less than a dispute later.

The Firm Dubai's advocates can review your contracts, company documents and will against the new law and tell you exactly what to change.

• Book a consultation with a partner
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We act for individuals, family businesses and international companies across Dubai and the other emirates. Contact The Firm Dubai today and get clear, practical advice in plain language.

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