Federal Law No. 8 of 2004 concerning Financial Free Zones (economy and business law)

Article (1) 
Definitions  
The State  : The State of the United Arab Emirates  
Financial Free 
Zone  : A free zone, that is established in any Emirate of the State, in which Financial Activities are carried out   
Federal Law No. 8 of 2004 on Concerning Financial Free Zones.  2 
 Financial 
Activities  : Banking, financial, insurance, financial markets activities and services and the Ancillary Activities thereto that are licensed to be performed 
in a Financial Free Zone.  
Ancillary 
Activities  : Financial and currency brokerage services, consultancy and the provision of services and the supply of goods to Companies and 
Establishments and individuals inside the Financial Free Zones.  
Financial 
Banking 
Activity  : Financial banking operations and banking operations.  
Companies and 
Establishments  : Companies, branches of companies and establishments that are 
established or licensed to operate in the Financial Free Zones

Article (2) 
A Financial Free Zone shall be established pursuant to a Federal decree. It shall have a 
juristic personality and the chairman of its board of directors shall be its lawful 
representative.  
It shall be solely responsible for the obligations arising from the conduct of its activity.  
The Cabinet shall define its location and area.

Article (3) 
1. Financial Free Zones, and all the activities therein, are subject to the provisions of the 
Federal Law No. (4) of 2002 Concerning the Criminalization of Money Laundering.  
2. Further, these zones and Financial Activities are subject to all provisions of Federal law 
with the exception of the Federal civil and commercial laws.

Article (4) 
 Financial Free Zones comply with the following:  
1. With regard to Financial Banking Activities:  
a. Licensing shall be limited to branches of Companies and Establishment, joint ventures and companies wholly owned by any of the foregoing, provided that they  
Federal Law No. 8 of 2004 on Concerning Financial Free Zones.  3 
 have a strong financial position and a complete organizational and management 
structure and are managed by persons having expertise and knowledge in this type 
of activity.  
b. Companies and Establishments licensed in the Financial Free Zones shall not engage 
in taking deposits from the national market and shall not enter into transactions in 
the U.A.E. Dirham.  
c. The licensing standards for companies and branches of Companies and 
Establishments shall not be lower than those applied in the State.  
2. No financial brokers licensed on an exchange in the State may transact business in a financial free market without the approval of the Emirates Securities and Commodities 
Authority and Market.  
3. No companies already listed on any of the exchanges in the State shall be listed without 
the approval of the Emirates Securities and Commodities Authority and Market.  
4. The performance of insurance activity in the State shall be limited to re -insurance.  
5. That the actual existence of the Companies and Establishments licensed to operate by 
the free zones shall be restricted to the boundaries of those zones; however, it is 
permissible to license them to operate outside the State.

Article (5) 
 Financial Free Zones must not perform any activity that results in the breach of an 
international treaty to which the State has adhered or will adhere.

Article (6) 
The Financial Free Zones may enter into memorandums of understanding and cooperation with similar parties and entities on condition that these memorandums do not conflict with 
treaties to which the State is a party.

Article (7) 
1. Financial Free Zones must publish semi- annual reports on their activities and their 
compliance with the provisions of this Law.   
Federal Law No. 8 of 2004 on Concerning Financial Free Zones.  4 
 2. The competent authorities in the Federal government have the right to carry out 
inspections of Financial Free Zones to verify adherence to the provisions of this Law and 
shall present the result thereof to the Cabinet to take appropriate action.  
3. Subject to the provisions of Article 3  - for the purpose of establishing a Financial Free 
Zone - the relevant Emirate may issue regulations necessary for it to perform its activity.

Article (8) 
 Financial Free Zones, pursuant to a resolution issued by the Cabinet and for a period not 
exceeding four years from the date of their establishment, may license Companies and 
Establishments to perform their operations outside the managerial and geographical 
boundaries of those zones in the State.

Article (9) 
The Cabinet shall issue the implementing regulations for the provisions of this Law.

Article (10) 
This Law shall be published in the Official Gazette and shall be effective from the date of its publication.  
  
 
Zayed Bin Sultan Al- Nahyan  
UAE President  
 
Promulgated by us at the Presidential Palace in Abu Dhabi:  
Date: 22 Muharam 1425  
Corresponding to: 14 March 2004