The United Arab Emirates Constitution was amended in 2004, to allow for the establishment of freezone areas. Under the constitutional amendment, Federal Law No. 8/2004 On Financial Free Zones was enacted. This enabled the establishment of financial freezones by Federal Law No. 8/2004. The Abu Dhabi Global Market (ADGM) was established by Federal Decree No. 15/2013 On the Establishment of a Financial Free Zone in the Emirate of Abu Dhabi. Cabinet Decision No. 4/2013 On the Determination of the Location and Space of Global Marketplace Abu Dhabi sets out the location and area of the ADGM.

All federal laws in the United Arab Emirates (UAE) with the exception of the company and commercial laws, apply in the financial freezones. It is also expressly stated in Federal Law No. 8/2004 that all the operations conducted in the financial freezones are subject to the federal laws relating to money laundering.