UAE lowers legal age to 18, strengthens citizen rights / AI Illustration
The UAE Government has issued a new Federal Decree Law to restructure and modernise the nation’s Civil Transactions Law, aiming for a simpler, clearer, and more coherent legal framework that matches the evolving needs of society and business. This legislation is considered the most comprehensive and unified update of its kind in history, bringing older, scattered civil provisions together under one practical and modern system. It moves away from outdated references, eliminates overlap with recently enacted special laws, and aligns civil legal principles with real-world social and economic realities.
UAE’s new Civil Transactions Law
One of the most talked-about changes is the reduction of the age of legal majority from 21 lunar years to 18 Gregorian years, bringing UAE civil law in line with global standards and other national laws (like labour and juvenile codes). This shift has real-life impact, including:
- 18-year-olds can now independently enter contracts and manage financial affairs.
- Minors aged 15+ can apply for judicial permission to manage their property, encouraging youth participation in business and entrepreneurship.
- Courts can grant judicial assistants to people who cannot express their will, ensuring their decisions are genuinely in their best interests.
At its core, this law reinforces legal capacity and protects free will, balancing empowerment with safeguards against exploitation The new law does much more than adjust ages, it rewrites how civil agreements work, making everyday legal interactions more predictable and fair:
- Contracts & Pre-contractual Negotiations: The law introduces a duty to disclose fundamental information before signing agreements, so parties make informed decisions. It also introduces framework agreements for long-term or recurring contracts to reduce repetition and disputes.
- Sales and Consumer Protection: Rules are clarified for different sales types, including sale by sample or model, and buyers now have clearer options if goods are defective
- Reject the product,
- Accept with a price reduction, or
- Request a replacement.
The time to file a claim for hidden defects has also been extended to 1 year from delivery unless longer coverage is agreed. Compensation and Blood Money: In injuries or deaths where traditional blood money (diya) does not fully cover harm, the law allows it to be combined with additional compensation, ensuring full redress for both moral and material harm.
Company law and rights
- Single-person companies are now recognised, opening paths for solo entrepreneurs.
- Rules around shareholder withdrawal, company continuation, liquidation, and corporate stability are clearer.
- Nonprofit companies must reinvest profits into their mission, reinforcing community impact.
- Professional firms like legal or consulting practices get a dedicated legal framework.
The law also protects judicial integrity by banning judges, prosecutors, and their legal teams from acquiring disputed rights in cases they handle, a safeguard against conflicts of interest.
Insurance and possessory rights
Other important updates include:
- Contracts of works (construction/large projects) now include clearer rights, obligations, and options for courts to restore balance when unforeseen changes occur.
- Insurance and takaful law is streamlined, with refined rules to better protect all parties.
- Possession and rights assignments get new frameworks, especially to prevent encroachment before harm happens.
- Usufru sanctuary construction rights must now be registered for validity, a big deal for property developers and investors.
Why does all this matter? It’s about legal certainty. Whether you are a teenager starting a tech firm, an expat buying your first home, or a corporation signing a multi-year deal, these rules provide a clear, predictable roadmap. The law moves away from confusing, overlapping regulations and provides a single, unified reference point.By prioritizing “Good Faith” and disclosure, the UAE is reducing the chance for disputes before they even start. As stated by the UAE Government Media Office, this decree is a “pivotal legislative milestone” that reinforces the UAE’s position as a global hub for business and a safe, stable home for families of all nationalities. Go to Source
