This is a sponsorship arrangement where a UAE national sponsors a foreign business or individual. According to the UAE Commercial Companies Law, any foreign entity seeking to establish a mainland business in the UAE is required to have a local sponsor. This individual local sponsor holds a 51% stake in the company. However, while they legally own the majority of the company, they often agree not to intervene in the company’s operational, financial, or investment matters. This type of sponsorship is mainly for commercial and industrial licenses.