Thursday, May 23, 2024

Dubai Business

How Sports Sponsorship Works in Dubai and in Middle East Countries

Sponsorship is not a foreign terminology when it comes to professional sporting activities. Sponsorship broadly describes the act of providing financial support. It is seen as an immensely effective and powerful marketing tool since professional sports in itself attracts a huge audience. Sports sponsorship is therefore considered to be a booming industry by reputable business entities including multinationals such as Coca Cola, Emirates Airline, Nike, Adidas, Vodafone and so on.

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Sports sponsorship is comprised of two factions. The first group is the company that is marketing the product (also referred to as the sponsor) while the other group is the one being sponsored, also known as a sponsee.

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Believing in the Sponsee

Ordinary MotoGP hospitality agency sponsorship, as well as professional business sponsorship, have one thing in common. That they are both anchored on the premise that the sponsor believes in the ability of the sponsee. This is the central reason why the sponsor is willing to invest time, resources and energy on a particular person or group of individuals namely the sponsee. It is not only focused on financial backing, but on moral support and overall promotion of the course being advanced by the entity being sponsored.

In some instances, the sponsoring company observes a huge exposure level in the other party and decides to strategically sponsor them in order for them to tap into that exposure as a business strategy.

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Sports Sponsorship in the Middle East

Sports Sponsorship in Middle East
Picture Credit: Oman Observer

Sports sponsorship in Dubai and the United Arab Emirates, in general, is considered a far-fetched quest. However, there are some interesting aspects of sports sponsorship in this part of the world.
The first and most significant consideration in relation to Sports sponsorship in this part of the world is that there needs to be properly articulated set of documentation before any contract is entered into. Huge companies in the Middle East invest large sums of money in providing Sports sponsorship for various reasons. The central reason is for global marketing strategies.

Another component of Arab based contracts is that they must conform and reflect on the global best practices and standards. This means that their structure should largely adhere to comparable provisions in other regions in the world.

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Predominant Civil Laws

An important fact to note is that the laws in the jurisdiction of the region that is largely ruled by the Islamic Sharia Law which is considered to be harsh by other parts of the world. Consideration of the marketing and advertising laws is of the essence. On the Federal level, for instance, advertising is largely regulated by:

  • Federal Law No. 15 of 1980 Concerning Publications and Publishing.
  • Federal National Media Council Resolution 35 of 2012 Concerning the Standards of Advertisement Content in Mass Media.
  • Federal Decree No. 5 of 2012 on Combating Cybercrimes; and, buttressed by Federal Law No. 3 of 1987 (the Penal Code). It is also vital to consider the general moral values and principles that govern the people including mode of dressing.

A clear understanding of the various laws and general procedures anchored on the civil laws of the jurisdiction is important. Another component that is worth understanding well is the possible consequences of a breach of contract in the Arab regions. This includes any breach that relates to confidentiality or any other anticipatory or ongoing breach, a civil law jurisdiction is unlikely to provide injunctive relief.

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The summary of the analysis above is that there are exciting opportunities for both the sponsoring company and the sponsored party in the United Arab Emirates and more specifically in the Dubai region. The most significant aspect is to comprehensively understand the dynamics, values, principles and laws governing the regions.

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