UAE’s new Civil Transactions Law: What 18-year-olds can now legally do
Turning 18 in the UAE now comes with full civil legal capacity, following changes introduced under the new Civil Transactions Law, which lowers the age of majority from 21 lunar years to 18 Gregorian years. The change affects how young adults interact with contracts, banking, housing, education, and business, and reshapes long-standing assumptions about parental involvement once a child reaches adulthood.Legal experts say the shift is not just technical, but practical, changing how families, institutions, and courts approach everyday transactions.Parental consent no longer the defaultAccording to Byron James, a partner at Expatriate Law and an international family law expert, the most immediate impact of the reform is that parental or guardian consent is no longer assumed once a child turns 18.Stay up to date with the latest news. Follow KT on WhatsApp Channels.“In practice, lowering the age of majority to 18 changes not only the legal status of young adults, but also the operating assumptions families, banks, schools, landlords and even the courts have historically made about parental involvement,” he said.An 18-year-old is now presumed to have full legal capacity to contract and manage their assets. This affects banking arrangements, tenancy agreements, tuition obligations, consumer finance, vehicle purchases, business start-ups, and informal family arrangements where parents previously signed or guaranteed on a child’s behalf.“Families will need to appreciate that a parent may still be paying, but the young adult is the legal actor,” James said. “That distinction matters when disputes arise.”How disputes may changeJames said the reform is likely to change the nature of family disputes.Under the previous framework, disagreements were often framed around capacity or consent, with age providing a route to challenge or invalidate an agreement. With 18 now being the decisive threshold, those arguments become harder to sustain.“The question in court will increasingly be whether the transaction was tainted, not whether the person was legally too young,” he said, pointing to potential disputes involving allegations of undue influence, misrepresentation, exploitation, or imprudent financial decisions.He added that a poor decision alone would no longer be enough to undo a transaction. “A bad bargain does not automatically become a voidable bargain.”A shift in parental authorityThe new law also reframes parental guardianship in civil matters.While parents retain moral and practical influence, legal authority is no longer automatic once a child turns 18. This can be particularly relevant in separated families, where one parent may previously have blocked a transaction by withholding consent.“That dynamic recedes once the child turns 18, because neither parent has an automatic veto,” James said. “This can reduce leverage-based conflict, but it also introduces a new reality where a young adult can choose one parent’s advice over the other’s, or disregard both entirely, with legal effect.”Full capacity, with real consequencesFrom a commercial and financial perspective, Bianca Gracias, managing partner at Crimson Legal, said the reform brings the law closer to how young adults already live.“Reducing the age of legal majority to 18 brings the law into alignment with how most young adults already live and transact,” she said.In practical terms, she explained, an 18-year-old can now enter contracts, open bank accounts, incur financial liabilities, act as a company founder or shareholder, and be legally responsible for those decisions without parental consent.“For young adults, this is empowerment paired with accountability,” Gracias said. “Yes, they have legal capacity now at 18 years, but this also carries risk. Poor decisions, unpaid debts, or badly negotiated contracts now have real and lasting legal consequences.”Broader shift towards autonomyLegal experts say the reform reflects a broader shift toward autonomy, with protection based on evidence rather than age alone.Courts retain the ability to intervene where there is a lack of capacity or exploitation, but families can no longer assume protection will apply simply because a decision appears unwise.The change, lawyers say, places greater importance on financial literacy, clear communication within families, and careful documentation when parents are contributing funds, such as clarifying whether support is a gift, a loan, or conditional assistance.Overall, the reform marks a move toward a modern model of legal adulthood in the UAE, offering clarity for institutions and independence for young adults, while requiring families to adjust to a new legal reality where responsibility now begins at 18.UAE lowers age of legal adulthood to 18: What the new law means, impact on residentsUAE: How new law enables minors to manage financial assets, inherited fundsUAE reduces age of majority to 18 years old in new decree law
Turning 18 in the UAE now comes with full civil legal capacity, following changes introduced under the new Civil Transactions Law, which lowers the age of majority from 21 lunar years to 18 Gregorian years. The change affects how young adults interact with contracts, banking, housing, education, and business, and reshapes long-standing assumptions about parental involvement once a child reaches adulthood.
Legal experts say the shift is not just technical, but practical, changing how families, institutions, and courts approach everyday transactions.
Parental consent no longer the default
According to Byron James, a partner at Expatriate Law and an international family law expert, the most immediate impact of the reform is that parental or guardian consent is no longer assumed once a child turns 18.
Stay up to date with the latest news. Follow KT on WhatsApp Channels.
“In practice, lowering the age of majority to 18 changes not only the legal status of young adults, but also the operating assumptions families, banks, schools, landlords and even the courts have historically made about parental involvement,” he said.
An 18-year-old is now presumed to have full legal capacity to contract and manage their assets. This affects banking arrangements, tenancy agreements, tuition obligations, consumer finance, vehicle purchases, business start-ups, and informal family arrangements where parents previously signed or guaranteed on a child’s behalf.
“Families will need to appreciate that a parent may still be paying, but the young adult is the legal actor,” James said. “That distinction matters when disputes arise.”
How disputes may change
James said the reform is likely to change the nature of family disputes.
Under the previous framework, disagreements were often framed around capacity or consent, with age providing a route to challenge or invalidate an agreement. With 18 now being the decisive threshold, those arguments become harder to sustain.
“The question in court will increasingly be whether the transaction was tainted, not whether the person was legally too young,” he said, pointing to potential disputes involving allegations of undue influence, misrepresentation, exploitation, or imprudent financial decisions.
He added that a poor decision alone would no longer be enough to undo a transaction. “A bad bargain does not automatically become a voidable bargain.”
A shift in parental authority
The new law also reframes parental guardianship in civil matters.
While parents retain moral and practical influence, legal authority is no longer automatic once a child turns 18. This can be particularly relevant in separated families, where one parent may previously have blocked a transaction by withholding consent.
“That dynamic recedes once the child turns 18, because neither parent has an automatic veto,” James said. “This can reduce leverage-based conflict, but it also introduces a new reality where a young adult can choose one parent’s advice over the other’s, or disregard both entirely, with legal effect.”
Full capacity, with real consequences
From a commercial and financial perspective, Bianca Gracias, managing partner at Crimson Legal, said the reform brings the law closer to how young adults already live.
“Reducing the age of legal majority to 18 brings the law into alignment with how most young adults already live and transact,” she said.
In practical terms, she explained, an 18-year-old can now enter contracts, open bank accounts, incur financial liabilities, act as a company founder or shareholder, and be legally responsible for those decisions without parental consent.
“For young adults, this is empowerment paired with accountability,” Gracias said. “Yes, they have legal capacity now at 18 years, but this also carries risk. Poor decisions, unpaid debts, or badly negotiated contracts now have real and lasting legal consequences.”
Broader shift towards autonomy
Legal experts say the reform reflects a broader shift toward autonomy, with protection based on evidence rather than age alone.
Courts retain the ability to intervene where there is a lack of capacity or exploitation, but families can no longer assume protection will apply simply because a decision appears unwise.
The change, lawyers say, places greater importance on financial literacy, clear communication within families, and careful documentation when parents are contributing funds, such as clarifying whether support is a gift, a loan, or conditional assistance.
Overall, the reform marks a move toward a modern model of legal adulthood in the UAE, offering clarity for institutions and independence for young adults, while requiring families to adjust to a new legal reality where responsibility now begins at 18.
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