DIFC and ADGM: the UAE's Financial Free Zones
What a financial free zone is
Federal Law No. 8 of 2004 allows a financial free zone to be set up in any emirate by federal decree. These zones are exempt from federal civil and commercial laws, but federal criminal law, including the anti-money laundering law, still applies.1,3
DIFC was created by Federal Decree No. 35 of 2004 and ADGM by Federal Decree No. 15 of 2013. Firms authorised in DIFC may not take deposits from the UAE domestic market or deal in dirhams.2,3
DIFC and ADGM compared
| Feature | DIFC | ADGM |
|---|---|---|
| Emirate | Dubai | Abu Dhabi |
| Financial regulator | Dubai Financial Services Authority (DFSA) | Financial Services Regulatory Authority (FSRA) |
| Company registration | Registrar of Companies | Registration Authority |
| Courts | DIFC Courts, common law | English common law framework |
| Firms | 10,018 active companies, 1,134 regulated financial firms | 13,974 active licences, 3,986 operational entities |
| Asset management | 592 wealth and asset management firms | 190 fund and asset managers running 276 funds |
| Workforce | 50,200 at the end of 2025 | 49,027 in H1 2026 |
Source: DIFC: Laws and regulations; DIFC: Setting up a wealth and asset management firm; ADGM: Registration Authority; DIFC: H1 2026 results; DIFC: About DIFC, 2026; ADGM: H1 2026 results2,8,7,4,5,6
Each centre measures its size differently: DIFC counts active registered companies, ADGM counts active licences and operational entities. The figures are not directly comparable.
Setting up a regulated firm
| Step | DIFC | ADGM |
|---|---|---|
| 1 | Submit a letter of intent to DIFC | Contact the FSRA to start the application |
| 2 | Send a Regulatory Business Plan to the DFSA and get in-principle approval | After FSRA approval, register the company with the Registration Authority |
| 3 | Register and incorporate, set up the office, visas and bank account; the DFSA then grants the licence | Register a lease: a physical presence is required, except for SPVs |
Source: DIFC: Setting up a wealth and asset management firm; ADGM: Setting up FAQs; ADGM: Setting up in ADGM8,9,10
Frequently Asked Questions
What is the difference between DIFC and ADGM?
Both are financial free zones with their own civil and commercial laws and common law courts. DIFC is in Dubai and regulated by the DFSA; ADGM is in Abu Dhabi and regulated by the FSRA.
Sources
- DFSA: Federal Law No. 8 of 2004 on Financial Free Zones
- DIFC: Laws and regulations
- ADGM: Federal legislation
- DIFC: H1 2026 results
- DIFC: About DIFC, 2026
- ADGM: H1 2026 results
- ADGM: Registration Authority
- DIFC: Setting up a wealth and asset management firm
- ADGM: Setting up FAQs
- ADGM: Setting up in ADGM
Figures checked 21 October 2026. Prepared by Invest-Emirates.ae for general information. It is not investment, tax or legal advice; please confirm details with a qualified adviser before acting.