LOCAL SPONSORSHIP

Historically the legislation in the Gulf States has only allowed partial ownership to ex-pat businessmen. The tide is now turning and a number of Gulf States are enacting legislation allowing 100% ownership to ex-pats. Even in the states that mandate majority shareholding in favor of their nationals, the attitudes are changing with a clear understanding that the national partner, usually called “The Local” or “The Sponsor”, is a sleeping partner and is there only to fulfill the legal requirement. The sponsor has no rights on business management, turnover or profits.

While the debate is raging in all Gulf States and there is a clear will to remove the sponsorship system, the wheels of the legal system turn rather slowly. The business opportunities, however, are abundant and cannot wait for the change in the sponsorship system.

We can assist you to capture these current opportunities by introducing you to silent, dormant, trustworthy partners. These are individuals with basic human decency. We have a stringent wetting procedure to assess the suitability of nationals as local partners. We only recommend credible individuals as sponsors who have a well-established track record of noninterference and unequivocally commitment to support the businesses of our ex-pat clients.

If you are considering sponsorship for your new business or are not satisfied with your current sponsor, we can advise you on how to navigate the maze. For confidential advice please call our specialist consultants.