UAE civil law changes from June 1: Big shift for families, firms and residents

A major legal shift is taking effect in the United Arab Emirates from June 1, changing how residents, families and businesses deal with contracts, assets, disputes and everyday civil transactions. At the centre of the overhaul is a key change for young people: the legal age of adulthood in civil matters will be reduced from 21 to 18.

The change is part of the UAE’s new Civil Transactions Law, Federal Law No. 25 of 2025, which will replace the country’s Civil Code that has been in force since 1985. The new law is aimed at bringing more clarity, transparency and accountability into civil dealings, Gulf News reported.

Change in legal age

Under the new framework, 18-year-olds will be able to act independently in several civil matters. This means they can sign contracts, take part in legal proceedings, start businesses and carry out other legally recognised activities without waiting until the age of 21.

The reform is expected to affect a wide range of day-to-day transactions in the UAE. These include rental agreements, business contracts, failed commercial deals, service agreements, property transactions, investment arrangements and settlement negotiations.

Full disclosure policy

A key feature of the new law is its focus on transparency during negotiations. Individuals and companies will be required to disclose important information that could influence the decision of the other party. Failure to share complete material facts may lead to legal action.

This provision could have a direct impact on property purchases, long-term service contracts, business partnerships and investment projects, where incomplete disclosure can often lead to disputes.

The law also seeks to bring more procedural certainty by laying down clearer rules on time limits, documentation and record-keeping. It provides more defined guidelines on deadlines for filing civil cases, which could help reduce ambiguity in legal proceedings.

For residents and businesses in the UAE, the new law marks one of the most significant updates to civil rules in decades. By replacing a framework that had remained in place since 1985, the country is moving toward a more defined system for contracts, negotiations and civil accountability.