UAE Local Partner & Sponsor — Required Only for Strategic Impact Activities.

No — 100% foreign ownership is now the default for most Dubai mainland LLCs since the June 2021 amendment to UAE Federal Decree‑Law No. 32 of 2021. Local sponsorship is only required for a narrow list of “strategic impact” activities including banking, insurance, oil and gas exploration, telecoms, defence contracting, military equipment, and certain regulated media. For all other activities, you can form a mainland LLC with 100% foreign ownership.

The strategic impact activities requiring 51% Emirati ownership are published by the UAE Cabinet and include: banking and financial services (other than those in ADGM/DIFC), insurance, commercial agency, oil and gas exploration, telecommunications, defence contracting, military equipment and ammunition, and certain broadcasting and print media. Professional services, trading, consulting, e‑commerce, and most service businesses do NOT need a local partner.

YABS local partner arrangements start at AED 12,500 per year for standard strategic activities, structured as a Corporate Service Provider contract where the Emirati partner holds legal 51% shareholding but assigns 100% of profits, operational control, and signing rights to the foreign partner via a notarised Power of Attorney and side agreement.

YABS structures every local partner arrangement as a formal Corporate Service Provider contract notarised at UAE Courts, including: 100% profit assignment to the foreign party, irrevocable Power of Attorney for bank signing and license decisions, fixed annual fee with no profit sharing, mutual share buyback clauses, and a guaranteed exit mechanism. Our partners are vetted Emirati corporate entities, not random individuals.

Yes. If your business activity is no longer on the strategic impact list, you can convert existing Dubai mainland LLCs to 100% foreign ownership by amending the MoA and buying out the local partner’s share at DED. YABS handles the full conversion including MoA amendment, partner buyout, court notarisation, and DED re‑registration. Typical cost AED 6,500–9,500 depending on company complexity.