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Choosing the Right Sponsor for Your Business in UAE

sponsors in uae

Setting up a business in the United Arab Emirates (UAE) can be an exciting and profitable venture. However, for foreign entrepreneurs looking to establish a business on the mainland, finding a local sponsor is a crucial step. A local sponsor, also known as a local service agent, plays a significant role in the business setup process and can influence your company’s success. In this blog post, Choose UAE will discuss the importance of selecting the right sponsors in UAE for your business and provide some tips to help you make the best choice.

Why Do You Need a Local Sponsors in UAE?

Foreign entrepreneurs looking to set up a business in the UAE mainland were traditionally required by law to have a local sponsor. This sponsor, who must be a UAE national, would hold a minimum of 51% ownership in the company. However, this requirement has been amended recently, and the need for a local sponsor no longer applies to more than 1,000 commercial and industrial business activities. Thanks to Federal Decree-Law No. 26 of 2020 amending the provisions of Federal Law No. 2 of 2015 on Commercial Companies, foreigners are now allowed to establish companies with 100% full ownership. Despite these changes, partnering with a trustworthy and reliable local sponsor can still significantly enhance your company’s credibility and reputation in the UAE.

Key Considerations When Choosing Local Sponsors in UAE

When searching for a sponsor, it’s crucial to consider factors such as their experience, expertise, reputation, connections, and support. A sponsor with a strong background in your industry can provide invaluable insights into the local market, helping your business overcome challenges and capitalize on opportunities. Additionally, a sponsor’s reputation can significantly impact your company, so ensure they have a good standing in the community and a clean legal record. Well-connected sponsors can offer access to valuable contacts and resources, facilitating your business’s establishment in the UAE market. A dedicated and supportive sponsor can also help you navigate the complex regulatory environment and offer valuable guidance throughout your business journey. Lastly, it’s essential to establish a transparent and mutually beneficial agreement with your sponsor, clarifying expectations, responsibilities, and financial arrangements upfront to prevent misunderstandings and


Tips for Finding the Right Sponsor

To find the right sponsor for your business in the UAE, it’s essential to conduct thorough research, utilizing online resources, local business directories, and professional networks to gather information on potential sponsors and their backgrounds. Seeking referrals from fellow entrepreneurs or professionals experienced in the UAE market can provide invaluable insights for identifying a reliable and trustworthy sponsor. Attending networking events, such as local business conferences, can help you meet potential sponsors and expand your professional network. Additionally, consulting with professional business setup service providers like Choose UAE can simplify the process of finding a suitable sponsor. These companies have extensive experience and connections in the market, enabling them to help you identify and connect with the right sponsors for your business.




Identifying a suitable local sponsor plays a vital role in the prosperity of your business in the UAE. Considering elements such as experience, knowledge, standing, and networks can guarantee a successful collaboration with your sponsor, leading to a flourishing business in the UAE market.

How Can Choose UAE Help

At Choose UAE, we focus on helping you navigate the complexities of finding the ideal sponsor for your business. Our team of specialists has a wealth of local market knowledge and robust connections within the business community, significantly aiding you in identifying and connecting with the perfect sponsor. Contact us today to explore how we can assist you in launching and nurturing your business in the UAE.

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