The UAE is reducing the minimum age to 18 through contract, property and corporate law changes
The UAE government has issued a Land Determination Law that promulgates a new Public Commercial Law, which brings
The change includes lowering the age of majority from twenty-one to eighteen Gregorian years, a move that aligns the UAE with comparative legal systems and introduces a unified standard of full legal capacity across civil, juvenile, labor, and criminal law.
UAE civil law
The new Civil Transactions Law establishes a comprehensive and unified legal framework, representing a legal milestone and a qualitative change in the regulation of civil transactions in the UAE.
It is based on a balanced and modern vision that aims to reorganize the general bases of rights and obligations, improve the clarity of legal rules, and facilitate their practical application to all courts, businesses, and individuals.
The law is part of an ongoing national legislative process focused on modernizing the legal framework. Simplify legal provisions, consolidate references, and eliminate duplication with newly enacted special laws, improving efficiency and reducing the complexity of procedures.
From a legal point of view, the law expands the scope of legal reasoning by giving the courts a wide discretion to refer to the principles of Islamic Sharia where there is no provision of applicable law.
In such cases, judges may choose the solution that best serves justice and the public interest according to the circumstances of each case, without being bound by a particular school of law or a single doctrine of Sharia.
The law also provides for the application of Sharia principles where there is no special law governing matters related to persons of unknown parentage, missing persons, and absent persons, strengthening legal flexibility to evolving societal needs.
State and local law
A comprehensive review of the law took into account the practical challenges faced by the judiciary, while respecting the competences of local authorities in managing certain matters, issuing licenses, and overseeing activities related to human trafficking.
Local law still applies within the jurisdiction of each emirate, while the law preserves the unity and integrity of the federal legal framework and ensures harmony between the roles of the state and the local.
To prevent duplication, conflicting provisions have been deleted.
In relation to copyrights, the law has reorganized the rules governing construction rights, requiring registration with a competent authority and providing for nullity in the absence of registration. It introduced provisions governing the obligations of rights holders and allowed parties to determine the duration of those rights.
The law also provides that financial assets located within the UAE belonging to expatriates without heirs will be designated as a charitable gift, under the supervision of a competent authority.
A new regulatory framework is introduced for the assignment, which is accompanied by provisions for the protection of property with protective measures aimed at stopping new acts of entry before damage.
Youth empowerment, and protection
The law adopts clearer legal concepts in line with modern commercial realities, strengthening the legal power of the individual while protecting freedom of choice in legal acts and contracts.
In an effort to support businesses and youth participation in economic activities, the law lowers the age at which a minor may seek court approval to manage assets from eighteen years of Hijri to fifteen years of Gregory.
It also introduces provisions dealing with people who cannot express their will, giving the courts the power to appoint a legal assistant to support such people in actions that serve their interests.
Contracts and compensation
The Decision Act establishes an improved framework governing pre-contractual negotiations, which imposes an obligation to disclose basic information to ensure informed contractual decision-making and reduce disputes.
It introduces the concept of a framework agreement to manage emerging or long-term contractual relationships, defining in advance the important terms to reduce time and costs and ensure a consistent legal reference.
Financial actions of a sighted child involving profit and loss are considered to be ineffective at a small profit rather than suspended, with defined time limits for disposal.
The law allows for a combination of blood money or assessed compensation with additional damages when the death or injury results in physical or moral injury that is not fully covered, guaranteeing the principle of full compensation.
Sales contracts were revised with a clear rule on sales by sample and model, improved protection in cases of total deficiency in real estate sales, and strengthened rules governing latent defects. The time limit for latent defect claims was extended from six months to one year from delivery, unless a longer warranty is agreed.
Corporations, non-profits, and professional organizations
Business provisions have been modernized to comply with commercial law. The law differentiates between public and business companies based on function and legal form, allows one-person companies, regulates partner withdrawal, continuation, and liquidation procedures, and promotes company stability.
A dedicated legal framework for non-profit companies is introduced, requiring the reinvestment of profits into the company’s objectives and supporting sustainable development.
The law also establishes a modern system of professional companies, which regulates ownership, naming, and liability, and introduces independent regulation of commercial contracts outside the scope of company law.
It deals with contracts, insurance, and warranties
Provisions governing employment contracts were revised to clarify obligations, regulate termination, address contingencies affecting the fairness of contracts, and empower courts to restore balance.
Insurance provisions were refined, including a comprehensive framework for takaful insurance, while the rules governing guarantees were restructured to protect guarantors and ensure equity compliance.
