The easiest way for a foreign investor to establish a business presence in the UAE is to enter into a Joint Venture (JV) with a UAE National (Local) or a company 100% owned by UAE Nationals.
A Joint Venture can be arranged on the following basis:
- All aspects of the business and stock of products remain the property of the foreign investor.
- The foreign investor controls the management of the business including operations of its bank accounts.
- The foreign investor effectively receives all profits except for an agreed fee paid to the Local.
- The UAE National provides sponsorship to the foreign investor’s employees for residence visas and work permits.
- The UAE National must have a licence to operate the Joint Venture in the name of the foreign investor.
- Licences are issued by the Municipality or Economic department of the Emirate where the business will be set up.
- A Joint Venture is not suitable for manufacturing, contracting or similar businesses.
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