Legal Majority Age Reduced to 18 in the UAE: What Has Changed and Who Is Impacted?
A major legal reform is on the horizon in the United Arab Emirates, reshaping how legal capacity is defined and exercised. Under Federal Decree Law No. 25 of 2025, which amends the Civil Transactions Law, the UAE will formally reduce the age of legal majority to 18 Gregorian years, with the law expected to enter into force on 1 June 2026.
This is not a technical tweak. It is a structural shift with wide-reaching consequences for individuals, families, and businesses operating across the UAE.
What Has Changed?
The UAE’s Personal Status Law now recognises 18 years (Gregorian) as the age of full legal capacity, replacing the earlier threshold of 21 Hijri years. In practical terms, individuals who turn 18 are presumed to be fully legally competent unless a court determines otherwise.
This means 18-year-olds can independently manage their legal and financial affairs without parental or guardian consent. The shift also replaces the Hijri (lunar) calendar standard with the globally recognised Gregorian calendar, eliminating long-standing ambiguity around age calculation.
What Full Legal Capacity at 18 Really Means
From the moment an individual turns 18, they are legally empowered to:
• Enter binding contracts
• Manage, sell, or dispose of assets
• Sue or be sued in their own name
• Make independent financial and legal decisions
Previously, individuals below 21 Hijri years were often treated as minors, requiring guardian approval or court oversight. The new framework places greater autonomy, and responsibility, squarely on young adults.
Why the Shift From Hijri to Gregorian Matters
The move to Gregorian age calculation aligns UAE law with international norms. The Hijri calendar, being lunar, is around 10–11 days shorter than the Gregorian year, which historically led to confusion in contracts, passports, banking, and cross-border transactions.
By adopting the Gregorian standard, the UAE is simplifying legal certainty, improving consistency with global documentation, and strengthening its position as an internationally aligned business jurisdiction. This reform is part of a broader national legislative strategy focused on legal modernisation and economic competitiveness.
Challenges That Come With Earlier Legal Capacity
While the benefits are clear, the reform is not without risk. Legal autonomy at 18 assumes a level of financial literacy and maturity that not all young adults possess. This increases exposure to:
• Poor financial decision-making
• Exploitation or unfair contracting
• Disputes arising from misunderstood obligations
• Vulnerability to scams and aggressive credit products
As a result, financial education, structured advice, and early planning will become essential rather than optional.
Are There Safeguards?
Yes. The law continues to provide important safety nets. Courts retain the authority to intervene in cases involving incapacity, abuse, or mismanagement, particularly where significant assets or complex arrangements are involved. Legal capacity at 18 is presumed, but it is not absolute or beyond judicial oversight.
What This Means for Families in the UAE
For expatriate and local families alike, the implications are significant. Once a child turns 18, they can legally act independently in many matters, including signing contracts, managing assets, or holding shares in a business.
This makes early financial education, thoughtful structuring, and proper estate planning critically important, especially where minors are expected to inherit assets or participate in family-owned enterprises.
Implications for Consumer-Facing Businesses
1. Stronger Contract Enforceability
Lowering the age of majority reduces capacity-related risks when contracting with customers aged 18–20. Businesses are less likely to face challenges around enforceability, collections, or disputes based on legal competence.
2. Updates to Terms & Conditions
Many UAE consumer contracts still reference 21 as the age threshold. These must now be reviewed. If a business wishes to retain a 21+ policy for commercial reasons, it should be framed as eligibility, not legal capacity, to avoid inaccuracies.
3. Simpler Onboarding and Consent Flows
Age prompts, parental consent mechanisms, and KYC pathways should be updated. For most offerings, parental approval for users aged 18–20 will no longer be necessary, enabling smoother onboarding.
4. Payments, Subscriptions, and Credit Exposure
While the contracting population expands, businesses should reassess risk controls for subscriptions, BNPL models, and postpaid services. Clear authorisation language, cancellation terms, and compliant collections policies are now even more important.
5. Disputes and Chargebacks
With fewer capacity-based defences available to customers aged 18–20, businesses gain a stronger legal position when enforcing cancellation fees, minimum terms, and limitation clauses.
6. Marketing and Product Access Rules
If a business maintains a 21+ policy for strategic reasons, this must be consistently reflected across terms, privacy notices, app ratings, and customer-facing policies—clearly as a business rule, not a legal requirement.
7. Data and Privacy Consents
Consent-based processing becomes simpler. For users aged 18–20, parental consent is generally no longer required, although sector-specific rules may still apply.
What Businesses Should Do Now
• Audit all consumer terms for references to “21” as legal majority
• Update sign-up, checkout, and consent flows
• Decide where 21+ remains a commercial policy and draft accordingly
• Review regulated product overlays (financing, BNPL, postpaid services)
• Add clear capacity representations confirming users are 18+ and legally competent
Turning Legal Change Into Strategic Advantage
This reform opens a window of opportunity for businesses that act early, adapt intelligently, and structure correctly. That is where Consult Kumar® becomes a valuable partner.
Consult Kumar® supports businesses across the UAE with end-to-end business setup services, complemented by corporate tax assistance, corporate bank account setup, accounting and bookkeeping, and ongoing compliance support.
As the legal environment evolves, the businesses that succeed will be those that align quickly, manage risk proactively, and build on a solid legal and operational foundation. Consult Kumar® is positioned to help you do exactly that, confidently, compliantly, and strategically. Get in touch with us today.
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