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Living in a different country from your home country can be confusing – so many new rules and regulations, different cultures, different types of housing, the list goes on and on.
This blog will give you insight into some of the common pitfalls. We’ll add them on a very regular basis – keep checking!
Jargon and expressions used can seem a tad odd and even disconcerting to a newcomer. We’ll make you feel right at home.
Here’s the first one ‘Anshallah’ or ‘Inshallah’ means ‘if Allah wills it’. Most Muslims use it at the end of a meeting (or even during the meeting) when they or you are going to do something, e.g. ‘I will organise another meeting, Anshallah’. There you go, bright as a button, it will come to pass if Allah wills it. You should be very respectful of anything relating to religion. How often do we say ‘please God’ which basically means the same thing?
They’re not all Arabic expressions, some others can be very confusing to say the least. Exactly what or who is a Sponsor? Who can be a Sponsor in business?
Let’s start with the business Sponsor first. This is a GCC national who will help you, Anshallah, do business in the GCC. If you are registered and licensed in the Dubai Mainland (oops, what on earth is that?? The answer’s coming soon!) and you are an LLC (Limited Liability Company), e.g. general trading company, then you will need a Sponsor. The Sponsor will own 51% of your company shares – erm, that doesn’t make much sense or does it? You will also need to pay the Sponsor an annual fee – you should discuss and agree – with your eyes wide open! Take advice from a savvy UAE lawyer.
There are ways to ensure you are protected but the Sponsor also needs to be protected. Get a good lawyer to draft the correct set of documents. We’ve worked with Al Tamimi (excellent so far) and their fees are reasonable.
If you are a sole trader/practitioner then you will need a Local Service Agent (LSA). This guy/girl has no say in your company, in its finances etc etc and does not own any shares (unless of course you want to sell them to him/her).
They are there to help you navigate the procedures and processes. They will also act as an interpreter if needed. You will need to pay them an annual fee. The fee is agreed between the parties but written into the Local Service Agent Agreement – just to make sure he/she gets his/her money!