Doing business is hard and risky anywhere in the world. Some places are more promising than others. In any case the most important step is to contact local authorities to get information about rules and regulations in the country before you open a business.

Especially the countries having "business sponsorship" like United Arab Emirates or Oman. Having a sponsor means that you have to have a local parter who is owning the business in front of the authorities even if in reality the investor is setting up the business 100%. In Oman e.g. the usual share is 70% for the expat 30% for the local.

"Normally"... but be careful "illegally" sponsorship works like this: To avoid paying a business-set-up fee, the sponsor might tell you, both of you should sign a side-agreement, or memorandum of understanding, or a cooperation-contract that regulates the ownership of the business, the percentage and all other business actions and procedures.

Be aware!!! These side-agreements are illegal in some Gulf countries e.g. in Oman. The sponsors know this very well, but still it is "normal practice". The sponsors are in huge troubles if they go in such a business. They even will be punished by going to jail for doing agreements with expats in this illegal way. For many of the investors these "partnerships" are ending up in loosing the business and their money.

As I had to face this problem recently, it would be a pleasure for me to share my experience with people who want to start a business in Oman.

The good thing is, that even you got cheated and were threatened to leave the country, as your sponsor decided to take over the business, you should fight for your rights! The authorities protect and support investors!

If you want to know more don't hesitate to contact me: vneusser@gmail.com