In the UAE, the age of majority has been lowered from 21 to 18, effective June 1, 2026.
As a result, young people aged 18 and over can now enter into contracts on their own.
This is expected to have a significant impact on economic activities such as signing smartphone contracts, opening bank accounts, entering rental agreements, and applying for various services. Below, we provide a clear explanation of the main changes and their implications.
The UAE Age of Majority Lowered to 18 from June 2026
The Federal Decree by Law Promulgating the Civil Transactions Law was issued on October 1, 2025, and came into effect on June 1, 2026.
As a result, the UAE’s age of majority changes from 21 to 18 as of June 1, 2026. The purpose of this new legislation is to align with international standards and to encourage young people’s participation in economic activities.
Under the new law, civil transaction capacity is divided according to age. A person is deemed to have full legal capacity on the day they turn 18.
| Age | Treatment under the new law |
| Under 17 | Deemed to lack the capacity for judgment |
| 17 to under 18 | Has a certain capacity for judgment, but with limited legal capacity |
| 18 and over | Has legal capacity |
Does the Change to the UAE Age of Majority Also Affect Foreigners?
Article 11 of the Federal Decree by Law Promulgating the Civil Transactions Law states that civil transaction capacity is governed by the law of the person’s home country.
For example, a Japanese national would need to refer to Japan’s “Civil Code.” In Japan, the age of majority was lowered to 18 effective April 1, 2022, so anyone aged 18 or over can enter into contracts independently.
However, if a transaction is carried out within the UAE where it is not readily apparent that the foreign party is subject to restrictions, it becomes difficult to claim that the contract is invalid.
What Can You Do When the UAE Age of Majority Becomes 18?
Under the Federal Decree by Law Promulgating the Civil Transactions Law, a person aged 18 or over who is not subject to legal restrictions will be able to carry out the following transactions:
Contracts Smartphone contracts, internet contracts, subscription services, gym memberships, applications for schools and lessons, and more
Asset management Managing assets held in one’s own name, and more
Real estate purchase and rental Rental agreements in one’s own name, various real estate–related procedures, and more
Financial transactions Opening bank accounts, creating debit cards, installment payments, using investment services, and more
Everyday procedures Contracting living services, modifying contract terms, cancellation procedures, and more
However, restrictions may apply due to school rules or workplace employment regulations.
The Impact of Lowering the UAE Age of Majority to 18
By lowering the UAE’s age of majority to 18, it becomes easier for young people to participate in economic activities.
Under the Federal Decree by Law Promulgating the Civil Transactions Law, individuals can sign up for services on their own from age 18, and the number of people using telecommunications contracts, financial services, rental agreements, educational services, digital services, and the like under their own names is likely to grow.
In other words, demand for services aimed at young people aged 18 and over may expand.
In sectors such as banking, real estate, education, telecommunications, e-commerce, and subscription services, some companies may revise their application forms and contracts in order to attract young customers.
This legislation is set to encourage young people’s economic participation and further invigorate the economy.
Summary
With the UAE lowering the age of majority to 18, it becomes easier for young people to handle contracts, financial transactions, and procedures for everyday services based on their own judgment. This can be considered an important institutional change that encourages young people’s economic participation.
Going forward, businesses offering services aimed at young people in the UAE may need to review their application forms, contracts, terms of use, and identity verification procedures. For those planning to start a business in the UAE, it is extremely important to understand institutional changes like this one, so we recommend proceeding with the guidance of professionals.
