UAE: How New Law Enables Minors To Manage Financial Assets, Inherited Funds

(MENAFN- Khaleej Times)

A newly issued UAE Civil Transactions Law reduces the minimum age at which a minor may seek court approval to manage their assets, from 18 Hijri years to 15 Gregorian years, within a supervised legal framework. Hijri years are based on the Islamic lunar calendar and are shorter than Gregorian (solar) years, meaning age calculations can differ between the two systems.

The reform has also lowered the age of majority from 21 lunar years to 18 Gregorian years, marking a significant shift in how young people can participate in legal proceedings and pursue economic interests.

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Considered a legislative milestone, the amendment is part of broader reforms aimed at modernising the UAE's legal system, simplifying legal provisions, and aligning them with recently enacted special laws.

What has changed?

Previously, a minor had to reach 18 Hijri years before applying to the court for permission to independently manage assets such as inherited funds, business interests, or investments. Under the new provisions, minors aged 15 years (according to the Gregorian calendar) may apply for judicial authorisation to do so.

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The court will grant this permission only if it is satisfied that the minor has sufficient maturity and capability to manage their assets responsibly.

What does this mean in practice?

The change does not mean that all 15-year-olds automatically gain full control over their finances. Judicial oversight remains central to the process.

In practical terms:

• The minor must submit an application to the court

• A judge will assess their maturity and ability to manage assets

• The court may impose limits or conditions to protect the minor's interests. Each case will be assessed individually

Why was the law amended?

The reform aims to encourage youth participation in economic activity while maintaining appropriate legal safeguards. By allowing capable teenagers to take on greater responsibility under court supervision, the law seeks to:

• Support young entrepreneurs

• Enable minors to manage businesses or investments where appropriate

• Provide a clear and stable legal framework for early economic engagement

Where does it apply?

According to Samara Iqbal, Founder of Aramas International Lawyers, the provision is intended for specific situations rather than general financial independence.

“In practice, this is designed for cases involving inherited assets, business interests, or investment portfolios,” she said.“Judicial oversight remains key, as the court assesses the minor's competence and may impose limits or conditions to protect their interests.”

She added that while some ambiguities remain, the amendment strikes a balance between empowering capable young people and ensuring legal protection.

Beyond the age of majority

In addition to revising the age thresholds, the amended Civil Transactions Law introduces wider reforms, including updates to proprietary rights, stronger protection of free will, expanded judicial assistance for those who need it, and provisions for additional blood money in certain cases. Together, these changes reflect the UAE's ongoing efforts to modernise its legal framework and adapt it to evolving social and economic realities.

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