What Founders in Dubai Need to Know Now
With the new Federal Decree-Law No. 25 of 2025, the United Arab Emirates are taking a long-overdue step: As of June 1, 2026, the age of majority in civil law will officially be 18 years. For young entrepreneurs planning to start a company in Dubai, this means: no guardians, no special permits, and no unnecessary waiting.
🛠️ What Specifically Changes for Founders in Dubai
Previously, founders under the age of 21 had to navigate a complex path – requiring parental consent, court approvals, and facing limited legal capacity to contract. This changes fundamentally with the new Civil Code.
Anyone who has reached the age of 18 by June 1, 2026, can independently sign contracts, establish a company, act as a sole shareholder or managing director, and open a corporate bank account in Dubai – all without the involvement of a legal representative. Civil law thus closes a gap that had already been addressed in labor and juvenile law: both areas already recognized the 18-year limit, while contract law lagged behind. This harmonization now creates legal certainty across all relevant sectors.
📍 Why This is Particularly Relevant for Dubai
Dubai has been the preferred location for international founders for years – attracting young entrepreneurship with its ecosystem of Freezones, support programs, and digital-friendly infrastructure. Hubs like Dubai Internet City or Dtec in Dubai Silicon Oasis are known for fostering tech startups early and supporting them with mentoring, coworking infrastructure, and investor networks. The fact that young founders will be fully legally capable there in the future without bureaucratic detours is not a marginal detail – it noticeably lowers the barrier to entry.
Cost-effective Freezones such as IFZA (International Free Zone Authority) or Meydan Free Zone, which are particularly popular with e-commerce founders and solopreneurs, also benefit from the new regulation: The target group, which is already strongly represented there, can start even earlier and more independently from June 2026.
⚠️ What You Should Still Verify in Advance
The reform simplifies many things – but the Federal Law does not regulate everything on its own. Three points deserve special attention:
🚩 Deadline June 1, 2026: Contracts signed by 18- to 20-year-olds before this date are still subject to the old legal framework. Anyone planning a setup should consciously factor in this date.
🏢 Internal Freezone Guidelines: While the Federal Law sets the framework, individual Freezones may still set their own minimum requirements for managing directors. A quick pre-check with the respective authority is advisable and saves time in case of doubt.
🛂 Visa-Related Questions: Civil legal majority does not automatically transfer to all visa categories. For example, those wishing to sponsor family members should have this checked separately on a case-by-case basis.
🤝 Conclusion
Lowering the age of majority to 18 is more than a legal formality – it is a clear signal that Dubai and the UAE want to actively involve young founders in taking responsibility. Anyone already thinking about starting a business in Dubai will have one less hurdle to clear as of June 1, 2026. The only question is: When will you start?