The UAE Constitution was amended in 2004, to allow for the establishment of financial free zones and the boundaries within which they are exempt the rules and regulations of the UAE. 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). Federal Decree No. 35/2004 established the Dubai International Financial Centre (DIFC).

The internal regulations which apply in the DIFC are the DIFC Laws enacted by the Ruler of Dubai and administered by either the DIFC Authority (DIFCA) or the Dubai Financial Services Authority (DFSA).