The UAE has lowered the legal age of adulthood to 18, granting young people full control over their finances. Experts say the UAE financial reforms will have far-reaching effects on youth, families, and institutions across the country.
Previously, Emirati law defined adulthood as 21 lunar years, roughly 20 Gregorian years. Under the updated Civil Transactions Law, individuals gain financial autonomy at 18. Additionally, minors aged 15 can now seek judicial authorisation to manage their own assets.
These changes allow young people to enter contracts, secure loans, buy and sell property, and register businesses independently. For example, 18-year-olds can now run a business without needing guardian approval. Courts may also authorise minors to manage assets, streamlining access to funds for education, property, or daily expenses.
Government officials said aligning the age of adulthood across UAE law will enhance legal clarity. It also harmonises civil, criminal, labour, and juvenile regulations. Already, Emiratis can marry, drive, and work full time at 18. Now, financial and contractual responsibilities will match other adult rights.
Legal experts praised the reforms. Byron James, partner at Expatriate Law, said the change recognises modern realities and empowers youth. “Young people already assume social and economic responsibilities,” he explained. “These reforms bring legal clarity and support independent decision-making.”
Sheikha Bu Humaid, senior associate at Al Tamimi & Company, said the reforms will strengthen independence for 18-year-olds. They can now sell property, manage inheritances, and make financial decisions without a guardian. “It places full legal and financial responsibility on their decisions while fostering accountability,” she added.
Financial experts also noted potential risks. Keren Bobker, senior partner at Holborn Assets, cautioned against credit overuse. “Banks can now offer loans and credit cards to 18-year-olds, but promoting debt could be irresponsible,” she said. However, she highlighted that inheritance and property transfers will become more direct and streamlined.
The reforms also impact family dynamics. Parents will shift from guardianship to advisory roles, guiding children in responsible decision-making before age 18. Hend Al Mehairi, associate at Al Tamimi & Company, said the law confirms legal realities while providing clarity. “Adulthood now carries both freedom and responsibility,” she explained.
Experts also highlighted judicial authorisation as a practical tool for minors. Diana Hamade, founder of Diana Hamade Attorneys at Law, noted that families previously had to undergo time-consuming court processes for minor expenses. The new system simplifies financial management for youth and families alike.
The UAE financial reforms mark a significant step toward empowering young people, promoting independence, and supporting entrepreneurship. They align the Emirates with international legal standards while enhancing financial literacy and responsibility.
