For foreign investors and entrepreneurs, a local sponsor in the UAE is a necessity for certain business types. These local sponsors help facilitate smooth business operations. A local sponsor means an Emirati individual can be a business partner in such entities. In the UAE mainland company structure, a local sponsor is mandatory as per the UAE Civil Law and Commercial Companies Law. This local sponsor must be either a UAE national or a company that is owned and operated completely by UAE nationals. They often take up a shareholding stake or 51% in the said company. In most cases, these sponsors are not involved directly with the day-to-day operations of the company. However, their role in the organizational setup is crucial for doing business in the UAE. They can help in getting the licenses, permits etc. for the company. Their role is also crucial because they provide the know-how of the local market, competition, local operations, cultural farsightedness, consumer psyche, and business etiquette for the company. They can also help the company in creating a local network of stakeholders, arrange crucial business meetings, help in new alliances and tie-ups etc. RAG has been supporting various new businesses and startup companies in securing efficient local sponsorships over the years. Our business association, experience in the sector and knowledge of the local business environment helps us in bringing together new companies and prospective local sponsors together.

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