By Staff Reporter
The United Arab Emirates is set to introduce major changes to its Civil Transactions Law from June 1, marking one of the country’s most significant legal reforms in recent years. The new legislation will lower the age of legal majority from 21 to 18 and reshape rules governing contracts, inheritance, compensation claims and financial rights for residents and expatriates.
Issued under Federal Decree-Law No. 25 of 2025, the reforms are aimed at modernising civil legislation while expanding individual legal and financial independence.
Full Legal Capacity Begins at 18
Under the revised law, individuals will gain full legal capacity at the age of 18 instead of 21. This means young adults will be able to independently manage financial matters, sign contracts and conduct legal transactions three years earlier than before.
Legal experts say the amendment reflects broader reforms already taking place across the UAE, including reduced age limits for driving, trade activities and banking services.
According to legal consultant Ludmila Yamalova, the move aligns with the UAE’s evolving approach toward youth empowerment and economic participation.
Minors Could Gain Limited Financial Control at 15
The law may also allow minors as young as 15 to manage inherited or personal assets under court supervision and strict legal safeguards.
If confirmed, the measure would give younger individuals limited financial authority while maintaining judicial oversight to prevent abuse or exploitation.
Contract Registration Could Become Mandatory
Another key proposal under discussion is the introduction of mandatory registration requirements for certain contracts to be legally recognised.
The UAE already enforces registration systems for tenancy agreements, property transactions and employment contracts. The new law could expand these requirements to additional civil agreements in an effort to improve legal transparency and enforceability.
New Rules for Expat Assets Without Heirs
The legislation is also expected to clarify what happens to assets owned by expatriates who die in the UAE without a will or legal heirs.
Under the proposed framework, unclaimed assets could be transferred into regulated charitable endowments rather than automatically reverting to the state. Authorities say the change would ensure more transparent management of abandoned estates.
Stronger Buyer Rights and Commercial Protections
The amendments are expected to strengthen consumer and buyer protections, particularly in disputes involving defective goods or property sales.
Buyers may gain expanded rights to:
- Reject defective products
- Request replacements
- Seek price reductions
- Pursue extended defect-related claims
Legal experts say the changes could significantly alter the balance of responsibility between buyers and sellers in commercial transactions.
Expanded Compensation in Injury and Death Cases
The law may also allow courts to award compensation beyond traditional “blood money” payments in cases involving serious injury or death.
If implemented, judges would be able to consider additional emotional and material damages where existing compensation mechanisms are considered insufficient.
Legal analysts believe the reform reflects the UAE’s push toward a more comprehensive civil justice system that better addresses modern legal and social realities.
