A local sponsor is an Emirati or a UAE national, who acts as your service agent for your business in the company. Being a mandatory requirement, it’s a real, inevitable challenge for foreign investors to find the right local partner in Dubai, appropriate for their line of business. UAE, where expatriates planning to set up an LLC or a joint venture are required to work with a Local sponsor (Emirati Partner), who would own 51% of the business. The remaining 49% can be owned by the expatriate. In some cases, the local sponsor does not have any involvement in the business daily activities except for helping in obtaining permits such as trade licenses, visas, and other official paperwork. However, the sponsor can provide you with a power of attorney and avoid any involvement in the operations or profit-sharing. For a professional company, the ownership is 100% for the investor, but a local service agent is still a requirement.