The UAE has officially lowered the legal age of adulthood to 18 under a new decree law, granting young people full legal rights and responsibilities previously reserved for adults.
UAE Sets Legal Age of Adulthood at 18 Under New Decree Law
The UAE government has introduced a new law regarding civil transactions, lowering the age of majority from 21 lunar years to 18 Gregorian years.
This legislation aims to create a more cohesive and comprehensive legal framework, transforming how civil transactions are regulated in the country. It marks an important step in the UAE’s ongoing effort to modernize its legal system. The law takes a practical approach, making legal provisions easier to understand, unifying references, and removing overlaps with recently issued special laws.
From a judicial standpoint, the law broadens the scope of court discretion, allowing judges to refer to Islamic Sharia principles in cases where no explicit legislative provision exists.
When no statutory rule applies, judges can rely on Sharia principles to choose the solution that best serves justice and public interest, without being restricted to a single jurisprudential school or doctrine.
This framework enhances the judiciary’s ability to adapt to societal changes. It also permits the application of Sharia in situations not specifically addressed by legislation, including cases involving unknown parentage, missing persons, or absentees.
Application of Islamic Sharia
From a judicial standpoint, the law broadens the scope of court decision-making, giving judges greater flexibility to rely on Islamic Sharia principles when no specific legislative provision exists.
In situations where the law is silent, either explicitly or implicitly, judges can turn to Sharia to determine solutions that best serve justice and the public interest, without being restricted to any single school of thought or Sharia interpretation.
This approach enhances the judiciary’s ability to respond to societal changes. It also allows the application of Sharia in cases not covered by existing legislation, including matters concerning individuals of unknown parentage, missing persons, or absentees.
Proprietary rights
The law has restructured the regulations related to usufructuary construction rights. It now mandates that such contracts be officially registered with the relevant authority. It also sets out the responsibilities of the rights holder and allows the parties involved to agree on the duration of these rights.
According to the new legislation, financial assets in the UAE owned by foreigners without heirs will be treated as charitable endowments, with oversight by the appropriate authority to ensure proper management and distribution.
Furthermore, the law introduces a new framework for the assignment of rights and establishes measures to protect possession. These preventive measures are designed to stop any new encroachments before they cause harm.
Corporate, non-profit companies
Corporate regulations have been updated to bring the civil transactions law in line with commercial legislation. The law differentiates between civil and commercial companies based on their activities and legal structure, allows the formation of single-person companies, and sets rules for partner withdrawal, company continuity, and liquidation, thereby strengthening corporate stability.
A separate legal framework has been created for nonprofit companies, requiring that any profits be reinvested to support the organization’s objectives.
Additionally, the law introduces a modern framework for professional companies, regulating ownership, naming, and liability. It also establishes independent oversight for “mudaraba contracts,” which operate outside the scope of standard company law.
Insurance
Insurance regulations have been updated, including the introduction of a detailed framework for takaful (Islamic) insurance. Provisions related to guarantees have also been reorganized to safeguard guarantors and ensure fair enforcement.
Key highlights of the new federal decree law include:
This is the UAE’s largest federal law and serves as the main reference for most federal legislation, providing the general framework and core principles governing legal acts and contracts in society.
The law represents a comprehensive modernization of legislation, aligning legal provisions with contemporary practices. It improves efficiency by using clearer and more precise legal concepts that reflect real-world transactions. Provisions already addressed by recent special laws have been repealed to avoid overlap and ensure consistency.
Significantly, the age of majority has been lowered from 21 lunar years to 18 Gregorian years, standardizing the legislative age reference and reducing practical complications. It also adjusts the minimum age for minors to obtain authorization to manage their own assets from 18 Hijri years to 15 Gregorian years, promoting youth empowerment and entrepreneurship.
The law further strengthens legal capacity and safeguards free will, while updating rules on legal acts and contracts to enhance certainty and reduce disputes.
Contractual negotiations
The new law establishes rules for pre-contractual negotiations, requiring parties to disclose all essential information to ensure that contractual decisions are made knowingly and responsibly.
It also introduces the concept of a framework agreement to manage recurring or long-term contractual relationships. This allows key terms to be set in advance, reducing time and costs while providing a consistent legal basis for future contracts.
Concerning contractual capacity, financial transactions entered into by a minor with discernment that involve both benefits and risks are now considered voidable rather than automatically suspended. Guardians can request annulment within one year of becoming aware of the transaction, while the minor has the right to seek annulment within one year of reaching adulthood.
