Plan to scrap mandatory business sponsorship

Establishing a new company in Dubai may no longer require a mandatory UAE sponsor if the government approves a recommendation to this effect, which is currently under study, said a top Dubai Chamber official.

Hamad Buamim, Director-General of Dubai Chamber, said the proposal has been with the Executive Council for the past three months. If approved, the new policy may be announced with the revised Company Law this year.

"This is in line with what the business community is expecting," he told Emirates Business. "It would support the business community in attracting more investment. The government is looking into this issue along with the Company Law that is under revision and is expected to be out in 2009."