The charm of Dubai’s strong economic structure, elongated geographic reach through the sea, copious commerce openings for trading, and elevated requirements of living has made the nation a well-recognized spot to begin an organization. Though it has been pulling in a large number of overseas financial investors quite a long while, for establishing their marks in the market, they also do a hefty amount of work in support of finding a local sponsorship as well. The local person is bound to have a 51% share of a company that means that outsiders are only availing the remaining 49% of the shares. For this, they need to scrutinize every possible aspect for a perfect collaboration and this requires a bigger risk as well. However, local sponsorship is not the only solution as there are other types of financial funding like corporate sponsorship that numerous outside investors are still not acquainted with the idea of in the UAE.
Generally, most people know about individual sponsorship and local agents but are still ignorant about corporate sponsorship. Terminologically it means that any UAE based company that can be either private or public asking foreigners to invest in their specific projects. The collaboration is between a 100% UAE organization and an overseas organization, so there is no need for financing by the locals. There is no interference by the sponsored party and sturdy profit is yielded by the working party. It is more secure and less risky as compared to the other two sponsorships. Furthermore, as the fund Provider Company is bound for a specific project only, hence they are allowed to opt-out without the hassle of any alternate planning that is obligatory in the other two categories.
One of the benefits of corporate sponsorship in Dubai is that the sponsor gets the 100% financial benefit from it. The national company charges for the services they are providing, so they do not require investing in the venture. In return, they give the full attorney of the project to the investors and seek working approval by the government for their entry in Dubai. It means that the sponsor gets a 100% financial return without any obligation of sacrificing more as compared with the locals.
Furthermore, the contract in corporate funding is protected in contrast to the other two investments and provides legal protection of a reliable process as well. The finance providers are involved with all details and are allowed to have proper consultation before making any decision or amendment. It does not only save the owner but also secures the shareholders in other prospects. The paperwork is constructed in a systematic structure and takes very little time for the competition of the documents.
Moreover, as pointed out earlier that if you are working with a UAE local sponsor then succession planning is required for avoiding any future problem when one retires or passes away. With corporate sponsorship, the partnership between two parties does not necessitate any plan in this regard. Hence, when a Dubai based company is working with an international client, it expands the horizons of opportunity both ways around. The exchange of technology and learning of new cultural values causes acceptance of a new progressive approach that eventually increases the brand’s image in the market as well. The affiliation makes the venture strong and flexible, thus, increasing the credibility of the organization among the audience.
Now the companies can reach a widening number of audiences by leading to new markets looking for new possible leads. The growth in potential reach ultimately increases the number of sales, companies earning large margins. Lastly, corporate sponsorship does only let businesses enter the global marketplace but also saves the time of searching for a local agent and building a new reputation with a new person. So if you want to launch an idea in Dubai, it is advisable to know your market and strategic approach before choosing for a sponsorship.