The Type of Business Sponsors available in Gulf Region

There was a time where the United States of America used to be the end goal for every entrepreneur to take their business to, but now that is all changed. The UAE or to be more specific, Dubai has become the epicenter for business creation and innovation. This city respects new and old entrepreneurs by providing them all the facilities a modern business requires and the local government has been keen in recent years to boost the businesses on its land. The laws are not the only plus points, the city itself is a tactical, harbors innovative structures, multiple business centers and an investment friendly economy.

Now, this heaven on Earth for businessmen is not as easy to get into as one would expect. Setting up your business can be a bothersome task initially, the policies, standards and the UAE market are tricky to get around. The government eased up this process for foreign investors and entrepreneurs, but they also made sure that the residents of the state are not left behind. They did so by making it mandatory that any foreigner opting to open a business on their land needs to obtain a business sponsorship in Dubai.

The Type of Sponsorships Available in UAE

You can always setup your business in a free zone but setting it up on the mainland has the most benefits for a business. In order to operate on the mainland, you would need a local sponsor. Below are the three types of sponsorships offered.

  • Independent Sponsorship

This sponsorship targets the native Emirati’s who are willing and able to provide a local sponsorship to a foreign business that is beneficial to both parties involved. The sponsor however will hold 51% of the business’s stock and will be liable to any losses. Do not worry, the sponsor can transfer the power to the original partner for an agreed upon price.

  • Local Service Agents

This is by far the most sought-after method of sponsorship as it allows you to keep all of your business stocks. The service agent will sponsor and work for you on a regular fee and make your life easier by looking after all the matters involving the government.

  • Corporate Sponsorship

This sponsorship also assumes the ownership of 51% of a business’s stocks. There are many upsides for a business to attain a corporate sponsor in Dubai. To mention a few, under the corporate sponsorship, you’d have access to a wider demographic, you’d still have 100% operational control and all of the financial benefits. This method will boost your business faster than any other form of sponsorship.

What You Should Do Before You Get Yourself a Sponsor in the UAE

We as a human race, find pleasure in cheating the system, or making money quickly without any hard work, hence it is immensely important to checkoff the points mentioned below before you join hands with your sponsor. It does not matter if the sponsor is a friend or a complete stranger, either one could have a questionable history in the Emirates and checking off the points below does no harm.

  • To begin with, make sure that the sponsor is currently a resident of Dubai or UAE, with proof of his or her residence.
  • Asses their household history, this aids in giving you an idea on if this sponsor will bring you goodwill amongst the businesses operation in the UAE or will it bring its backlash.
  • Make sure that the host is a well-educated entity with a grasp in English or your native tongue as he or she will help you breakdown the communication barrier for your business.
  • Obtain the sponsorship deed before signing the before signing up your business contract.
  • Lastly, get in touch with a corporation advisor to make sure that you have everything you need and you are aware of the terms, so that you are not fooled into giving more than required.


Having a sponsor in the UAE by your side is like having a cheat sheet for exam. Some might think of them as a liability, but they pose a vital advantage to the business, which is, its exponential growth and freedom of operation.

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