Lowering the Age of Legal Capacity to 18 in the UAE

In one of the most significant legislative reforms introduced in the UAE at the start of 2026, the Civil Transactions Law was amended to lower the age of full legal capacity from 21 to 18 years. This fundamental shift affects millions of people in the country and reshapes numerous legal and commercial relationships.

What Is Legal Capacity?

Legal capacity refers to an individual’s ability to independently enter into contracts and legal transactions without the need for a guardian. Before this amendment, individuals in the UAE did not acquire full legal capacity until the age of 21, which restricted young adults from exercising their civil and commercial rights.

Key Practical Implications

Contracts and Transactions: Individuals aged 18 can now enter into sale, purchase, and lease agreements, and open bank accounts without parental consent.

Business and Entrepreneurship: Those who have reached 18 can now establish companies or join as partners in commercial ventures, opening new doors for youth entrepreneurship.

Litigation: Individuals aged 18 can now file lawsuits and appear before courts in their own capacity.

Inheritance: Heirs who have reached 18 are now entitled to directly receive and manage their share of an estate.

Legal Advice

If you are a business owner or institution dealing with young adults between 18 and 21, it is essential to review your internal policies and contracts to ensure compliance with this new amendment. We also advise young adults to familiarize themselves with their new rights and obligations before entering into any legal transactions.

For legal consultation regarding the new Civil Transactions Law or any other matter, contact Mohamed Alazazi Advocates & Legal Consultants.