The UAE has introduced the most significant overhaul of its civil framework in over four decades with the issuance of the new Civil Transactions Law, whose provisions came into force in June 2026, replacing the former law issued in 1985. It brings changes that affect every individual and company, most notably: lowering the age of majority from 21 lunar years to 18 Gregorian years, enabling a minor to request permission to manage their funds from the age of 15 Gregorian years, changing the effect of vices of consent so they become grounds for nullity rather than rescission, introducing “the vice of exploitation” among the vices of consent, and regulating the pre-contractual stage and disclosure of material information. In this article we explain what is genuinely new across these themes and its practical impact on transactions and contracts.

What Is New in the UAE Civil Transactions Law 2026: Age of Majority, Vices of Consent, and the Vice of Exploitation?

1. What Is the New Civil Transactions Law, and When Did It Take Effect?

The Civil Transactions Law is the largest federal law in the country and the primary reference for most federal legislation, as it sets the general framework and the foundations governing dealings and contracts among members of society. The State issued a new Civil Transactions Law that wholly replaces the former law issued in 1985, in the largest reform of civil law in over four decades, and its provisions took effect in June 2026.

The new law is built on a comprehensive update that keeps pace with legislative development and enhances the efficiency of application, by adopting more precise and clearer legal concepts that reflect the reality of transactions, and by removing provisions already regulated by recent special laws so as to avoid duplication.

2. How Did the Law Change the Age of Majority and Legal Capacity?

One of the most prominent features of the law is the lowering of the age of majority, in order to unify the time reference adopted across legislation and reduce practical difficulties. This amendment aims to align the age of civil liability with the age of criminal liability, and to achieve consistency with a number of national laws such as the juvenile and labour laws, thereby reinforcing the clarity of a person’s legal status.

3. When May a Minor Manage Their Own Funds?

In the same context, the law amended the age at which a minor may request permission to manage their funds, in support of entrepreneurship and to enable young people to engage early in economic activity within a clear and stable legal framework.

4. What Are Vices of Consent, and How Did Their Effect Change to Nullity Rather Than Rescission?

Vices of consent are the defects that corrupt a contracting party’s assent and thus affect the validity of the contract. The new law made amendments to the provisions governing them, providing that where a vice of consent exists, the effect is not rescission of the contract but nullity, meaning the contract is regarded as void from its very origin, rather than merely the termination of a contractual relationship as in the case of rescission.

5. What Is the Newly Introduced “Vice of Exploitation” Among the Vices of Consent?

In addition to changing the effect of the vices of consent, the law introduced a new vice among them — “the vice of exploitation” — to be added to the vices recognised by law. Thus, the recognised vices of consent now comprise mistake, fraud, duress and exploitation, reinforcing the protection of the weaker party in a contractual relationship.

6. How Did the Law Regulate the Pre-Contractual Stage and Disclosure?

On the contractual side, the law regulated the stage of pre-contractual negotiations and established a duty to disclose material information between the parties. It also introduced the framework agreement to organise recurring or long-term contracting more efficiently and stably. The codification of good faith in the pre-contractual stage, and the associated disclosure obligations, is among the law’s most important innovations, after these matters had previously been addressed through general principles and judicial development.

7. What Are the Other Key Updates in the Law?

Alongside the foregoing themes, the law included a number of qualitative updates, most notably:

8. What Does This Mean in Practice for Individuals and Companies?

In practice, a person now attains full legal capacity upon reaching 18 Gregorian years, and a minor may request permission to manage their funds from the age of 15 Gregorian years, opening the way for young people to undertake early economic activity within a disciplined framework. At the level of contracts, a vice that corrupts assent has become grounds for treating the contract as void from its origin, not merely for rescinding it; exploitation has become a vice that may be relied upon; and there are now disclosure obligations during the negotiation stage. All of this calls on individuals and companies to review their contract templates and negotiating practices to comply with the new law.

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This content is published for legal culture and community awareness. It does not constitute legal advice for a specific case and is no substitute for consulting a specialist. The outcome of each case differs according to its facts, documents and the legislation in force at the time it is considered. This article is a translation; in the event of any discrepancy, the Arabic text is the authoritative reference.

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