How the UAE’s Civil Law Overhaul Rewrites Legal Rights, Contracts, and Expat Asset Rules, and Why It Matters for Global Investors and Families

In early 2026 the United Arab Emirates enacted one of the most significant updates to its civil law framework in decades. The changes represent more than technical fine-tuning, they reshape how people, families and businesses exercise legal rights in the UAE and signal the country’s commitment to modern legal standards that align with global practices.

The most eye-catching shift is the reduction of the age of legal majority from 21 to 18. Under the updated civil code, individuals reaching 18 years of age are now fully responsible for their legal and financial affairs, including entering binding contracts, opening bank accounts, managing assets and engaging in commercial activity without requiring parental or guardian approval. This change aligns the UAE’s civil law with international norms and reduces ambiguity in everyday transactions, benefiting young professionals, families and global corporations operating in the Emirates.

Alongside this redefinition of adulthood, the law introduces an earlier pathway for younger individuals to manage assets under judicial supervision. Minors as young as 15 may petition a court for permission to administer personal or inherited property, subject to strict conditions and oversight. This provision acknowledges rising youth engagement in economic activity while balancing empowerment with protective safeguards.

These developments have practical implications beyond youth rights. For families and global investors, clear legal capacity rules remove barriers that once impeded contract enforcement and asset management. Financial institutions, employers and legal advisers can now rely on a uniform age standard that simplifies due diligence, contract validity assessments and compliance processes.

Another cornerstone of the reform concerns how the UAE handles assets when a foreign resident dies without heirs or a registered will. Under the new civil law provisions, if an expatriate passes away and no legitimate heirs come forward, assets such as bank accounts, property and business shares are now directed toward approved charitable endowments under official supervision. This mechanism replaces a period of legal uncertainty in which dormant estates could remain frozen or be subject to ad hoc court decisions, often creating protracted disputes for creditors and related parties.

For expatriates and global families managing cross-border wealth, the rules reinforce the importance of proactive estate planning. Drafting and registering a will that is recognized under UAE law is now essential to ensure that assets pass to intended beneficiaries, rather than to public endowments.

The civil law modernization also touches contract practice. The reforms introduce clearer obligations around pre-contractual negotiations and may require certain contracts to be registered to ensure enforceability. Such clarity supports confidence in commercial dealings, from real estate transactions to complex corporate arrangements.

Taken together, these changes reflect the UAE’s ambition to improve legal predictability, support economic participation, and reinforce its position as a competitive global hub for talent, investment and family life. For legal counsel, wealth managers and expatriate households, understanding and adapting to these reforms is essential to safeguarding rights, minimizing risk and realizing long-term financial goals.

At Larson Wealth & Legacy we specialize in helping international families and investors navigate evolving legal landscapes like the UAE’s Civil Law overhaul. If you are living in the UAE, investing there or planning your estate with cross-border considerations, connect with our experts for personalized guidance and strategic planning tailored to your unique situation.