09/06/2026
With the entry into force of Federal Decree-Law No. 25 of 2025 concerning Civil Transactions as of 1 June 2026, any person who has completed 18 Gregorian years shall have full legal capacity, provided that they are of sound mind and are not legally interdicted.
The impact of this amendment is not limited to individuals only, but also extends to several important practical sectors, particularly business, banking, and real estate.
1. Business Sector and Company Incorporation
In terms of general legal capacity, a person who has completed 18 years of age may enter into commercial contracts and contractual obligations, subject to the requirements of licensing authorities, free zones, and the relevant commercial regulations.
2. Banking Sector and Financial Transactions
This amendment may affect policies relating to opening bank accounts, applying for financial facilities, and signing banking obligations, while such matters remain subject to banks’ internal policies and the instructions of the competent regulatory authorities.
3. Real Estate Sector
In principle, a person with full legal capacity may enter into sale, purchase, and lease agreements, and may dispose of their funds and real estate rights, subject to real estate registration requirements, procedures of the competent authorities, and any applicable regulatory controls.
4. Corporate Compliance and Updating Forms
Companies, banks, real estate developers, and legal service providers should review their contract templates, legal capacity verification policies, and internal compliance procedures to ensure alignment with the new age of legal capacity.
This update represents an important step in the development of the civil and legislative environment in the United Arab Emirates, and requires legal and regulatory readiness from both institutions and individuals.
To review your company’s contracts or contracting policies in line with the new legal updates, contact the team at Dr. Awad Alaryani Advocates & Legal Consultancy:
https://adaal.co/