UAE Civil Law Update: What changes for age limits, contracts, compensation and expat assets

Dubai: The UAE is introducing wide-ranging amendments to its Civil Transactions Law, marking a significant shift in how legal capacity, contracts, compensation and financial assets are treated.

While the official text is yet to be published, legal experts say the changes point to a broader legislative trend towards earlier legal responsibility, clearer contract rules and expanded protections.

Here is a breakdown of the key updates and what they could mean in practice.

Legal adulthood lowered to 18 instead of 21

One of the most notable changes is the reduction of the age of majority from 21 to 18. This means individuals will be considered fully legally capable at 18, rather than 21.

Ludmila Yamalova, Founder and Managing Partner of HPL Yamalova & Plewka FZCO Legal Consultancy, said the amendment aligns with recent legal developments across the UAE.

“By way of example, the new UAE Traffic Law reduced the minimum driving age to 17, while the Commercial Transaction Law lowered the age threshold for engaging in trade from 21 to 18. This approach is further reflected in recent banking practices, where individuals aged 18 are generally permitted to open bank accounts independently,” she said.

Minors may manage assets earlier with court approval

Another reported amendment relates to the age at which minors can receive court approval to manage personal or inherited assets.

According to commentary on the new law, this age could be reduced from 18 to 15, subject to strict conditions and judicial oversight.

“The commentary suggests that the new law reduces this age to 15, subject to specified conditions and judicial oversight. If confirmed, this change would align with the UAE’s wider legislative direction of extending legal capacity earlier, albeit under structured safeguards,” Yamalova explained.

If implemented, this would allow younger individuals limited financial autonomy under court supervision.

New legal provisions for missing persons and unknown parentage

The law is also expected to introduce new provisions dealing with missing persons, absentees and cases involving unknown parentage.

However, experts caution that this is a complex area where the practical impact will depend heavily on the final wording of the legislation.

“This is a complex area where the legal and practical impact depends heavily on the precise wording of the provisions, including definitions, conditions and procedures,” Yamalova said.

Contract registration may become a legal requirement

Another major development under discussion is the possible introduction of contract registration as a condition for legal validity.

While full details are still awaited, Yamalova noted that registration requirements already exist for certain types of contracts in the UAE.

“By way of context, certain contracts in the UAE already require registration to be legally recognised or enforceable. Examples include tenancy contracts through Ejari, property sale and purchase agreements registered with the Dubai Land Department, and employment contracts registered with the relevant labour authorities,” she said.

What happens to expat assets in the UAE when there are no heirs

The new law may also introduce clearer rules on how a foreigner’s assets in the UAE are handled when they pass away without a will and without any legal heirs.

“Under the current framework, such assets may ultimately revert to the state. If confirmed, the new law may set out more detailed mechanisms, conditions and options for handling such cases,” Yamalova said.

“Potentially, directing certain assets towards charitable endowments may be included as alternative outcomes, subject to legal requirements.”

According to the reported provisions, where there is no will and no heir claims, financial assets in the UAE would be placed into a charitable endowment under official oversight to ensure proper management and allocation.

New rules for pre-contract negotiations and disclosure

Ahmed Odeh, Managing Partner at MIO & Partners, said public information suggests the law may introduce clearer obligations around pre-contractual conduct, particularly disclosure during negotiations.

“If implemented as described, this would mark a shift from the traditional focus on post-contractual liability, and could have practical implications for how negotiations are conducted, particularly in commercial transactions where information asymmetry exists,” he said.

Stronger buyer protections and clearer rules on defects

The amendments are also expected to refine rules governing sale contracts, including sales by sample or model, protection for individuals with limited legal capacity in real estate transactions, and updated provisions on latent defects.

“It is understood that the limitation period for certain defect-related claims may be extended. If confirmed, this would represent a notable adjustment to the balance of rights and obligations between buyers and sellers,” Odeh said.

Under the proposed changes, buyers may be able to reject defective goods, accept them with a price reduction, or request a defect-free replacement, offering clearer legal backing when goods or property fail to meet expectations.

Compensation beyond blood money in injury and death cases

Another reported change is the potential to award compensation beyond traditional blood money or assessed compensation in cases involving death or injury.

This would apply where material or moral harm is not fully addressed by existing compensation mechanisms.

“If applied as indicated, this would reflect a move towards fuller compensation in serious injury and fatality cases, addressing issues that have previously arisen in practice,” Odeh said.

Important note: The new law, Federal Decree Law No. 25 of 2025, will amend the UAE’s Civil Transactions Law (Federal Law No. 5 of 1985), but it has not yet been officially published. At this stage, information about the law is based on public announcements shared by the UAE Media Office.

For the law to become official, it must be published in the UAE Federal Gazette. The law must also clearly state when it will come into effect.

The comments and insights in this article are based only on the information currently circulating in the media. A full and accurate analysis of the specific legal provisions will only be possible once the law is officially published in the UAE Federal Gazette.