UAE sets 18 as the new age of legal adulthood - here is what that covers

Dubai: Next week, a landmark law in the UAE will take effect and for anyone reaching the age of 18, it could bring significant changes, particularly in terms of financial affairs.

Federal Decree-Law No. 25 of 2025 was issued and published in the Official Gazette in October 2025 and comes into effect on June 1. Its most significant update - lowering the age of legal adulthood in the UAE from 21 to 18.

Under the new UAE Civil Transactions Law, full legal capacity means that an 18-year-old is now legally treated as an adult for most civil and financial matters.

In practical terms, this means an 18-year-old can generally act independently without needing a parent, guardian, or court approval for everyday legal transactions," explained Diana Hamade, Founder and Managing Partner of Diana Hamade Attorneys at Law

According to Hamade, the change unlocks a wide range of rights and responsibilities. From next month, an 18-year-old will be able to:

Hamade noted that the law reflects a shift towards recognising 18-year-olds as capable young adults rather than "extended minors." It aligns with other UAE reforms that have already lowered certain age thresholds in banking, driving, and commerce.

"For students and young professionals, this means more independence moving abroad for university, easier apartment rentals, easier freelance and startup activity, faster access to financial products and investments, and less paperwork requiring parental signatures," Hamade said.

She added that for families, parents may lose automatic legal control over financial and contractual decisions once a child turns 18. Guardianship structures and wills drafted on the assumption that adulthood begins at 21 may now need updating.

Banks, universities, employers, and landlords will likely adjust their policies, as many processes that previously required a parent's consent may no longer legally require it.

Importantly, "full legal capacity" does not necessarily override every separate law or regulation. Certain activities may still carry their own age limits or regulatory requirements, for example, alcohol-related rules, specific financial products, immigration sponsorship rules, or sector-specific licensing requirements.

So while 18 now marks legal adulthood in civil law, some practical restrictions can still exist under other UAE laws and policies.

"The scope of this change is broad. An 18-year-old will now be able to, among other things: sign lease agreements and rental contracts in their own name; sell or transfer property without court authorisation; manage shares or interests in an estate; establish or co-found a business; and pursue or defend legal claims before the courts," said Hashem Alahdal, Associate at BSA LAW.

The reform will have an immediate and tangible impact on matters such as being legally capable of signing a tenancy contract without a guarantor or parental co-signatory. Landlords and real estate platforms will need to recognise this new reality, though they retain the right to apply their own financial screening criteria.

"When it comes to banking and credit, the picture is nuanced. Most UAE banks have already permitted 18-year-olds to open current and savings accounts independently. The real shift lies in consumer credit, personal loans, car financing, and instalment plans signed by individuals aged 18 to 20 will now be fully enforceable contracts," Alahdal said.

Previously, such agreements existed in a legally grey area, as those individuals were not yet recognised as adults under the Civil Code. That uncertainty has now been removed.

"For car finance specifically, the change complements the UAE's earlier decision to lower the driving age to 17, young adults can now legally drive and independently finance their vehicles under one coherent legal framework," he said.

That said, financial institutions are expected to respond by strengthening their affordability assessments and product governance for younger customers. "Full legal capacity does not override the need for responsible lending; it simply creates a clearer and more enforceable framework within which it operates," he said.