Does the UAE age of majority reform affect employment contracts?

Yes. Employers should review employment documentation, HR policies, and any contractual terms that previously referenced the age of majority or imposed age-based conditions on legal capacity. The reform may affect the scope of parental consent requirements in employment arrangements involving individuals aged 18 to 20 who were previously treated as minors under UAE civil law.

UAE Lowers Age of Legal Majority to 18: What Everyone Must Know

11 August 2026

As of 1 June 2026, the UAE has lowered the age of legal majority from 21 lunar years to 18 Gregorian years under Federal Decree-Law No. 25 of 2025, Which Promulgates the Civil Transactions Law. This is one of the most significant reforms to UAE civil law in recent years, and for businesses that contract with, employ, or provide services to young adults, it creates immediate compliance obligations that require review.

What the Reform Changes

Under the previous Civil Transactions Law, individuals generally attained full legal capacity at 21 lunar years of age. Federal Decree-Law No. 25 of 2025 lowers this threshold to 18 Gregorian years. Unless otherwise restricted by law or judicial order, any individual who has reached the age of 18 is now considered fully capable of exercising civil rights and assuming legal obligations.
The law also reduces the age at which a minor may apply to a court for permission to manage their own assets, from 18 Hijri years to 15 Gregorian years, a change that supports earlier financial independence and entrepreneurship among young people in the UAE.

What 18-Year-Olds Can Now Do Under UAE Law

From the age of 18, individuals may generally:

Enter into legally binding contracts without parental or guardian consent
Purchase and dispose of property, subject to any sector-specific requirements
Open and manage bank accounts and other financial arrangements
Register and operate businesses where permitted under applicable legislation
Grant powers of attorney and undertake other civil legal acts in their own name

Compliance Implications for Businesses

The reform has direct and immediate compliance implications for any organisation that interacts with young adults in the UAE. Businesses that previously relied on the 21-year threshold, including financial institutions, property developers, insurers, employers, educational institutions, and companies providing digital services, must now review and update their procedures.
Areas requiring review include:

Customer onboarding procedures and age verification policies
Contractual documentation that references the age of majority or legal capacity
Internal compliance manuals and operational policies
Employment documentation and HR policies affecting young workers
Product and service eligibility criteria linked to age thresholds

Frequently Asked Questions: UAE Age of Legal Majority Reform

When did the UAE lower the age of legal majority to 18?

Federal Decree-Law No. 25 of 2025 Promulgating the Civil Transactions Law came into force on 1 June 2026. From this date, 18 Gregorian years is the threshold for full legal capacity under UAE civil law, replacing the previous standard of 21 lunar years.

Does the new law mean all age thresholds in UAE legislation have changed?

No. The reform establishes a uniform age of legal majority for civil law purposes but does not automatically amend every age requirement in other federal or local legislation. Certain sectors, including financial regulation, healthcare, family law, and regulated professions, may continue to impose separate eligibility requirements or licensing conditions. Businesses should not assume that every legal age threshold has changed and should conduct a sector-specific compliance review.

Can an 18-year-old sign a contract in the UAE without parental consent?

Yes. Under Federal Decree-Law No. 25 of 2025, an individual who has reached the age of 18 has full legal capacity to enter into binding contracts without parental or guardian consent, unless otherwise restricted by a specific law or judicial order. This applies across a broad range of civil and commercial transactions.

Can an 18-year-old buy property in the UAE?

Generally yes. The reform grants 18-year-olds full civil legal capacity, including the ability to purchase and dispose of property. However, sector-specific rules, such as those governing foreign ownership, freehold areas, or property registration requirements, continue to apply and should be considered on a transaction-by-transaction basis.

What should financial institutions do in response to this reform?

Financial institutions should review their customer onboarding procedures, account opening policies, and any documentation that references the previous age of majority threshold. KYC processes, age verification mechanisms, and product eligibility criteria should all be assessed and updated to reflect the new standard of 18 Gregorian years. Where existing contracts or policies reference the 21-year threshold, legal advice on the need for updates is recommended.

Does the reform affect employment contracts with young workers in the UAE?

Yes. Employers should review employment documentation, HR policies, and any contractual terms that previously referenced the age of majority or imposed age-based conditions on legal capacity. The reform may also affect the scope of parental consent requirements in employment arrangements involving individuals aged 18 to 20 who were previously treated as minors under UAE civil law.

Practical Steps for Businesses

Organisations operating in the UAE should take the following steps in response to the reform:

Conduct a compliance audit of all documentation, policies, and procedures that reference age of majority or legal capacity thresholds
Update customer onboarding, age verification, and eligibility processes to reflect the new 18-year standard
Review employment contracts, HR policies, and parental consent requirements for workers previously treated as minors
Assess whether sector-specific legislation applicable to your industry prescribes different age requirements that remain unchanged
Seek legal advice before assuming that existing contracts or policies are automatically compliant with the new framework

The Outlook: A More Internationally Aligned UAE Civil Law

Reducing the age of legal majority to 18 represents a significant step in the UAE’s ongoing legislative modernisation. By aligning with the standard adopted in most international jurisdictions, the UAE has simplified civil transactions, enhanced legal certainty, and expanded the ability of young adults to participate independently in economic and commercial life.
For businesses, the reform is both an opportunity and a compliance obligation. Those that proactively update their policies and documentation will benefit from a clearer, more uniform legal framework. Those that delay risk transacting based on outdated assumptions about legal capacity, with consequences for the validity and enforceability of their agreements.

How MIS Legal Can Help

MIS Legal advises businesses, financial institutions, employers, property developers, and individuals on the practical implications of Federal Decree-Law No. 25 of 2025. Our services include:

Compliance audits of contracts, policies, and procedures affected by the age of majority reform
Contract review and redrafting to reflect updated legal capacity thresholds
Sector-specific advice on the interaction between the reform and applicable regulatory frameworks
Employment and HR policy reviews for organisations with young adult workforces
Tailored legal guidance for financial institutions, property developers, insurers, and digital service providers

If your organisation needs to assess its exposure to the changes introduced by the new Civil Transactions Law, contact MIS Legal for a compliance review tailored to your business.