UAE Majority Age Reform: Key Implications from 1 June 2026

UAE Majority Age Reform_V
Author: Arshadh Malim

The UAE has introduced a significant reform to the rules governing civil legal capacity by reducing the age of majority from twenty-one (21) lunar years to eighteen (18) Gregorian years. This change is part of the new Civil Transactions framework promulgated by Federal Decree-Law No. 25 of 2025 Issuing the Civil Transactions Law (the “New Civil Transactions Law”), which is to come into effect on 1 June 2026, while repealing the prior civil code regime under Federal Law No. 5 of 1985 (as amended).

This article outlines:
  • The legal position under the existing law
  • What the reform is intended to achieve
  • The practical implications for individuals and institutions as the effective date approaches.
The position under the existing UAE Civil Transactions Law (Federal Law No. 5 of 1985)

Under the current Civil Transactions Law, full capacity is linked to attaining the age of majority. Article 85(2) provides that “a person shall be of the age of majority upon reaching the age of twenty-one lunar years.”

In practice, the use of a lunar age threshold has produced recurring issues for counterparties and regulated entities when dealing with individuals who are adults by common international standards (18+) but are not yet treated as having full civil capacity under the current rule. This has been most visible in high-value contracts, financial arrangements, guarantees, property transactions, and formal authorisations (including powers of attorney), where capacity due diligence is routinely scrutinised.

The reform: 18 (Gregorian) as the unified threshold for full civil capacity

The UAE Government’s legislative communication describing the New Civil Transactions Law confirms that a “core reform” is the reduction of the age of majority from twenty-one lunar years to eighteen Gregorian years, with the stated objective of unifying the legal age for full capacity and ensuring consistency with other national legislation (including juvenile and labour laws), thereby enhancing legal clarity and coherence.

Transactional and institutional implications
  • Capacity to contract and enforceability risk
Capacity is a threshold element of enforceability. The revised age standard is likely to reduce disputes and transactional friction arising from challenges based on age-related capacity for parties aged 18–20. This is particularly relevant where contractual commitments are long-term, financially material, or supported by security or guarantees. Institutions may also expect a reduced need for “workarounds” (guardian consents, additional representations, or deferred execution strategies) where the only risk driver was age.
  • Financial services, onboarding and documentation
Banks, payment service providers, exchanges, insurers, and other regulated institutions frequently embed age thresholds into onboarding, product eligibility, risk scoring, and documentation suites (mandates, indemnities, account terms, credit documentation, and authority matrices). Where those thresholds are anchored to civil capacity assumptions rather than internal policy choices, a review will be prudent to avoid (i) excluding persons who now have full capacity, or (ii) continuing to apply legacy age wording that could be inconsistent post-effective date.
  • Real estate and asset transactions
Property transactions, leases, and asset disposals often involve formalities and authority requirements, including notarisation and powers of attorney. A clearer 18-year threshold for civil capacity should simplify counterparty assessment for 18–20-year-old purchasers, tenants, guarantors, and authorised signatories, subject always to procedural requirements imposed by competent authorities and registries.
  • Dispute resolution posture and remediation of legacy documents

Capacity-based arguments have historically been deployed in civil disputes to contest obligations, unwind arrangements, or resist enforcement. The reform is expected to reduce the scope for such arguments for agreements entered into after 1 June 2026. However, legacy contracts executed before that date may still be assessed under the law applicable at the time of contracting, and parties should consider whether re-execution, ratification, or confirmatory documentation is appropriate in specific contexts (particularly for high-value or long-duration arrangements).

Managing the transition to 1 June 2026

For transactions straddling the effective date, negotiated earlier but intended to complete later, capacity should be assessed with careful attention to (i) the timing of execution, (ii) any conditions precedent requiring post-execution acts, and (iii) authority/registration steps that might be treated as legally operative. The government’s policy rationale emphasises harmonisation and clarity, but practical outcomes will still depend on how each transaction is structured and on any mandatory rules applicable to the sector or subject matter.

It is also important to distinguish civil capacity from age thresholds that may arise under other UAE legal regimes (for example, certain employment, licensing, or personal status contexts). The reform aims at coherence across legislation, but it does not automatically displace every age-based rule that may exist elsewhere in the legal system.

Conclusion
The reduction of the age of majority to 18 (Gregorian) is a material recalibration of the UAE’s civil capacity framework and will be relevant across consumer and commercial contracting, financial services, real estate, and dispute resolution strategy. The effective date, 1 June 2026, provides a defined window for institutions and counterparties to align contracting practices and compliance workflows with the revised capacity standard.

Note: This Legal Update / Newsletter is intended for general informational purposes only and should not be construed as legal advice. It is based on laws and legal interpretations in effect as of the date of publication. Laws and regulations may change over time, and their application can vary depending on individual circumstances. Readers are strongly encouraged to seek specific legal counsel before acting on any of the information provided herein.rian and religious purpose in accordance with the law.