UAE Lowers Legal Adulthood Age to 18 for Commercial Transactions

The UAE has officially lowered the legal age of majority for commercial transactions from 21 to 18. The legislative change permits individuals to launch businesses, sign binding contracts, and manage financial entities independently upon reaching their 18th birthday. Legislative Framework and Commercial Capacity The update follows the enforcement of Federal Decree-Law No. 50 of 2022 on Commercial Transactions. Under Article 18 of the law, any individual who has attained the age of 18 and is of sound mind possesses the full legal capacity to practice commerce. This replaces the previous requirement of 21 years for full commercial autonomy. Previously, individuals under 21 required specific court authorization or a legal guardian’s signature to engage in most high-level commercial activities. The new law streamlines the entry of younger residents and citizens into the private sector, allowing them to assume full legal liability for their business ventures. Operational Impact on Business and Banking The reduction in the legal age threshold affects several administrative processes. Individuals aged 18 are now eligible to apply for business licenses independently through the…