For mainland businesses in the UAE, having a local sponsor has traditionally been a requirement. A local sponsor is a UAE national (either an individual Emirati or a UAE-owned corporate entity) who holds a share in the company as per UAE law. In a standard mainland LLC, the local sponsor legally holds 51% of the company’s shares, while the foreign investor owns 49%. This structure is mandated by the UAE Commercial Companies Law to ensure local participation in businesses. Despite the local sponsor’s majority share on paper, the foreign owner can retain full operational and financial control through carefully drafted side agreements and powers of attorney. In fact, with the right sponsorship arrangement, your day-to-day control and profits are safeguarded while complying with the legal ownership requirements.