The UAE Federal National Council's Economic & Industrial and Financial Committee (EIFC) has approved the Federal draft law on Financial Free Zones in the country, Zawya.com reported.
Hamad bin Saif Al Mansoori, Chairman of the Economic, Industrial and Financial Committee, stated that "all financial activities including banking by institutions, insurance and re-insurance, financial markets, financial consultation and banks services will be allowed in the free zones according to the draft law.
"According to the draft law the financial institutions operating in any of the Financial Free Zones in the country are not allowed to absorb deposits from the local market and should not deal with the local currency - dirham," he added. "Licensed brokerage houses and companies listed in the financial local markets can't operate in the free zones without prior approval from the Emirates Financial and Commodity Authority."