Local sponsorship involves partnering with a UAE national (Emirati) who will hold at least 51% of the company’s shares. There are three main types of local sponsorship:

Corporate Sponsorship: An Emirati-owned company (corporate entity) acts as the local sponsor. The corporate entity holds 51% of the business. This type often provides more stability and reliability.

Individual Sponsorship: An individual Emirati acts as the sponsor. The sponsor holds 51% of the business. Suitable for smaller businesses or professional services.

Local Service Agent (LSA): Used for professional service businesses (sole proprietorships or civil companies). The LSA does not own shares in the company but facilitates administrative and legal processes. The expatriate retains 100% ownership of the business.