The UAE Constitution was amended in 2004, to allow for the establishment of Free Zones areas. Under the constitutional amendment, Federal Law No. 8/2004 Concerning the Financial Free Zones was enacted. This enabled the establishment of financial free zones by Federal Decree (the Financial Free Zones Law). The Abu Dhabi Global Market (ADGM) was established by Federal Decree No. 15/2013. Cabinet Decision No. 4/2013 sets out the location and area of the ADGM.

All the UAE federal laws with the exception of the company and commercial laws apply in the financial free zones. It is also expressly stated in the Financial Free Zones Law that all the operations conducted in the financial free zones are subject to the federal laws relating to money laundering.

Abu Dhabi Law No. 4/2013 as amended by Abu Dhabi Law No. 12/2020 (the ADGM Law) sets out the governance, legislative, regulatory framework and activities which can be carried out in the ADGM.