Whether you are trying to make an investment or start a venture in Dubai mainland, finding a local sponsor or service agent is more than inevitable. Mainland Dubai strictly adheres to the UAE government-sanctioned shareholding structure which is 51% local share and 49% ex-pat share. A foreign investor must consider a UAE national as the local sponsor or better known as a silent or dormant business partner who has a hold on 51% of the company’s shares and is receiving a yearly income without having hands in the administration or management of the business operations. Sometimes, this may adhere foreign investors to make some agreements with local sponsors which can end up in disputes and maybe in courts.
