The Dubai International Financial Centre (DIFC) was set up by Dubai Law No. 9/2004 (replaced subsequently by Dubai Law No. 5/2021 on the Dubai International Financial Centre) as a financial freezone with a view to promote Dubai as a global financial hub. It is an independent jurisdiction in the UAE, applies the common law principles and has its own regulatory bodies and own court system.

Banking is one of the core areas at the DIFC with focus on corporate and transaction banking. The other areas include private banking, investment banking, brokerage and capital markets. The financial markets activity is regulated by the Dubai Financial Services Authority (DFSA).

In principle, the banking activity in the DIFC is independent in comparison to onshore Dubai or the wider UAE. However, according to Federal Decree-Law No. 14/2018 On the Central Bank and the Organisation of Financial Institutions and Activities, the UAE Central Bank may extend its reach to licensed financial institutions inside the freezones, subject to cooperation with the freezone regulators.