Whereas a local sponsor was a mandatory requirement for most mainland firms in the UAE. However, legislative changes from June 1, 2021, have dismissed the requirement for local sponsors for business loans. This change allows foreign investors and entrepreneurs to own and manage businesses on the mainland without the need for a UAE resident partner as a sponsor.
However, it is important to be aware that the requirement for a local sponsor may still exist for certain business operations or business loans in certain sectors, especially for expatriates.
