Operating a limited liability company in the UAE requires UAE nationals to hold a majority shareholding in the company. As such, foreign investors must enter into partnership with a local party. In some cases, disagreements between shareholders can occur, particularly if the so called "nominal shareholders" wish to enhance their share of the economic interests or to increase their involvement in the operation of the company. Key points made are as follows:

• Foreign investors traditionally enter into partnership with UAE national shareholders in order to comply with the provisions of the UAE Federal Law No. (8) of 1984 concerning the Commercial Companies (as amended) (Companies Law).

• The Companies Law provides that any company with limited liability to be incorporated in the UAE should include one or more UAE national shareholder(s) who hold a minimum of 51% of the share capital of the company.