A landmark law in the UAE will come into effect next week, bringing significant changes for individuals turning 18, particularly in financial and legal matters.
Federal Decree-Law No. 25 of 2025 was issued and published in the Official Gazette in October 2025 and will come into force on June 1. The key reform lowers the age of legal adulthood in the UAE from 21 to 18.
Under the updated UAE Civil Transactions Law, full legal capacity means individuals aged 18 and above will now be treated as adults in most civil and financial matters.
Legal expert Diana Hamade, Founder and Managing Partner of Diana Hamade Attorneys at Law, said the change allows 18-year-olds to act independently without requiring parental, guardian, or court approval for routine legal transactions.
The reform grants 18-year-olds the ability to sign employment, rental, service, and education contracts; open and manage bank accounts; start and operate businesses; initiate or face legal proceedings; and manage inherited assets earlier than before.
They may also draft wills, provided they are of sound mind, and in certain cases handle property and investments, subject to relevant regulations.