The requirement of Emirati shareholding in an LLC Company

Dear Miss Raluca Gatina,

We are planning to set up an LLC in Abu Dhabi. The new company shall have four Saudi nationals as shareholders - together holding 85% shares and a UAE citizen - holding the remaining 15%.

We were told by some friends in the UAE that it is mandatory for an LLC to have an Emirati citizen or a legal entity as a majority shareholder holding not less than 51% of the shares.

This requirement is for licensing and company registration purpose only while we could have a side agreement as shareholders reflecting the actual shareholding structure.

I will be grateful for your advice.

Kind regards,

P. W.