The UAE Lowers The Age of Majority from 21 to 18: What This Means for Expat Families

The UAE has introduced a significant legal reform, lowering the legal age of adulthood from 21 to 18. This change forms part of a new Federal Decree Law updating the Civil Transactions Law. This is the main law that governs contracts, property, compensation, and legal responsibility in everyday life.
This reform modernises the legal system and aligns the UAE with international norms. It also brings important consequences for families, and particularly expats with teenage children.

What Has Changed?

Under the new law:

• 18 years old is the new legal age of majority
• The law now uses the Gregorian calendar, rather than lunar years
• At 18, a person has full legal capacity unless restricted by a court

‘Legal capacity’ refers to the ability to make legally binding decisions. At 18, a person can now therefore:

• Enter into commercial contracts
• Sign a tenancy agreement
• Open and manage bank accounts
• Start a business
• Be fully liable for debts and obligations
• Be legally responsible for their decisions
• Sue or be sued in their own name

Previously, even if someone was working or married, they were considered a minor under civil law until the age of 21.

For expat parents, this is significant as you are no longer legally responsible for your child when they turn 18.

The law also introduces an important change for children aged under 18. Children aged 15 and above can now apply to a court for permission to manage their own assets, run a business, and engage in certain financial activities. This is intended to support young entrepreneurs.

Why Has This Change Been Made?

The government introduced this reform to modernise the legal system in line with other countries. Three main reasons underpin the change.

First, the UAE seeks to align itself with global legal systems. Most countries recognise adulthood at 18. The UAE’s previous system, which defined adulthood at 21 lunar years, created confusion. This is especially significant given the prevalence of expats in the country, whose home countries hold the age of 18 as the standard.

Second, this reform establishes consistency across other UAE laws. Other UAE laws already treat 18-year-olds as adults for employment, criminal responsibility, marriage, and driving. This removes contradictions within the domestic law.
Lastly, this reform seeks to empower young people by supporting youth independence, entrepreneurship, and economic participation in a country with a significant young population.

Implications for Expat Parents

1. Parental Legal Authority Changes at 18

Once your child turns 18, parents do not have automatic authority over contracts, financial decisions, and legal disputes.

2. Legal Liability Shifts to the Child

If an 18-year-old falls into debt, enters a dispute, or enters a bad contract, they are personally responsible.

3. Culture Clash

Many expat families from Asian, Middle Eastern, or African backgrounds may not view the age of 18 as adulthood socially. This difference in cultural norms may lead to unexpected legal exposure for families.

4. Increase in Responsibility for Children Over 18

The new law places a stronger emphasis on protecting individual free will by allowing the autonomy to enter contracts and manage finances. However, this places a responsibility on those over 18 to understand the contracts they enter into, as the courts are generally reluctant to interfere in contracts entered into freely, unless there is evidence of fraud, coercion, or a lack of legal capacity.

5. Assistance for Vulnerable Individuals

The law recognises that not everyone holds the capacity to validly express their will. The courts may appoint a judicial assistant to support individuals with mental or communication impairments who are unable to manage their affairs independently. This is a step forward for families with vulnerable dependants.

Immediate Takeaways for Expat Parents

Here are the steps you should take to educate your child on the responsibility they hold under the new law.

1. Educate Your Child

Talk to your child before they turn 18 about what legal adulthood actually entails. The new Civil Transactions Law holds real legal consequences for those over 18.

Explain to your child that at 18, they can enter binding contracts on their own. This includes tenancy agreements, employment contracts, phone plans, online subscriptions, and business arrangements. Make sure they understand that contracts do not need to be ‘formal’ to be enforceable. Emails, online forms, and app-based agreements can all create legal obligations.

It is crucial to discuss debt and liability. If your child takes out a loan, signs a payment plan, or guarantees an obligation, they are personally responsible. Parents are not automatically liable anymore.

Make sure your child understands that, while the courts offer protections to prevent exploitation by rendering a contract null in cases of lack of capacity or duress, simply ‘not understanding’ a contract is not a defence.

2. Be Cautious with Business Ventures

Whilst the new law actively supports youth entrepreneurship, it also exposes young people to commercial risk at an earlier age. Teenagers aged 15 and above can now apply for court authorisation to manage their own assets, and at 18, they may run businesses and enter commercial contracts independently.

If your child is starting a business, investing money, or partnering with others, consider obtaining legal advice. This is especially important where contracts are long-term and involve shared ownership or financial guarantees.

Parents should be aware of the new framework governing pre-contractual negotiations, which requires disclosure of fundamental information. Encourage your child to ask questions, request written terms, and avoid informal or rushed agreements.

3. Review Financial Access and Authority

As soon as your child turns 18, review who has control over bank accounts, cards, and digital payment platforms. Many young adults gain immediate access to credit and installment plans without fully appreciating the consequences. Be sure to discuss spending limits and payment obligations.

4. Encourage Careful Decision-Making

The new law strengthens individual autonomy, but with that comes mature and informed decision-making. Encourage your child to pause before signing anything, committing money, or agreeing to any obligations.

5. Seek Assistance for Vulnerable Individuals

If your child is vulnerable, the new law allows courts to appoint a judicial assistant to safeguard their interests. This must be requested for families caring for children with additional needs as they transition into legal adulthood.