Historically the legislation in Gulf States has only allowed partial ownership to expat businessmen. The tide is now turning and a number of Gulf States are enacting legislation allowing 100% ownership to expats. Even in the states that mandate majority shareholding in favour 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 the 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 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, trust worthy 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 non interference and unequivocally commitment to support the businesses of our expat clients.
If you are considering sponsorship for your new business or are not satisfied with your current sponsor, we can advise you how to navigate the maze. For confidential advice please call our specialist consultants.
