In the United Arab Emirates, a local sponsor is essential to the establishment of a firm for overseas investors, including sponsor visa Dubai. Acting as a liaison between the foreign investor and the local regulatory framework, the sponsor holds a 51% ownership stake in the UAE business. Despite this majority ownership, the sponsor’s role is mainly passive, devoid of decision-making authority or involvement in day-to-day operations. Instead, they serve as a conduit for navigating the UAE’s intricate legal and administrative landscape.

It’s important to note that while the sponsor holds the majority stake, they do not claim 51% of the profits. Instead, they are compensated through an annual fee for the facilitation services provided by the sponsorship company. This arrangement allows foreign investors to maintain operational autonomy and strategic business control while adhering to local ownership regulations. Sponsors in the UAE can be individuals or corporate entities, offering flexibility in the choice of partnership structure. While specific industries may require mandatory sponsorship, such as those related to real estate, trading, and professional services, other sectors may allow for 100% foreign ownership.