UAE's new law reducing legal age of maturity from 21 to 18 comes into effect

On Monday, June 1, 2026, new updates on the provisions of Federal Decree-Law No. 25 of 2025 came into effect. According to the updates, the law reduced the age of majority from 21 Hijri years to 18 Gregorian years, in addition to amending the age at which a minor may request permission to manage their funds from 18 Hijri years to 15 Gregorian year, to enhance youth participation in economic activities and entrepreneurship within a regulated legal framework.

The law also unifies the age of full legal capacity at 18 years, enabling anyone who reaches this age to sign employment, rental, service, and education contracts, open and manage bank accounts, manage money and assets, file lawsuits or plead on their own behalf, in addition to and managing their legal and financial affairs independently without the need for parental or guardian consent.

They will be also have the power to establish companies and engage in commercial activities directly.

The law identified categories of legal entities specifically are: the state and the emirates, and other administrative units granted legal personality by law, federal or local public bodies, establishments, institutions, and other entities granted legal personality by law, religious bodies and communities recognised by the state as having legal personality, endowments, civil and commercial companies, except those specifically exempted by special provision, non-profit societies and institutions, federations, social solidarity funds, other public benefit institutions established in accordance with the law and any group of persons or assets to which legal personality is attributed by law.

The law also affirmed that a legal person has all natural rights recognised by law, and has independent financial liability, capacity within the limits prescribed by law, the right to litigate, and an independent domicile. The domicile of a legal person is considered to be the place of his administrative centre. As for legal persons whose main centre is abroad and have activities in the United Arab Emirates, their administrative centre is considered to be the place where the local administration, representing them, is located.