Collaboration Between UAE Agencies and Licensed Influencers to Ensure Compliance with New Social Media Laws

Multiple advertising and marketing agencies in the UAE are currently verifying the licensing status of influencers they engage with. This follows Abu Dhabi's announcement of penalties for conducting social media campaigns without the necessary permits.

Industry experts view this trend as a shift from an informal hobbyist sector to a regulated and officially recognized form of advertising.

Abeer Faisal, Marketing Specialist at Omorfia Group, emphasized that they rigorously verify the licenses of the social media personalities they collaborate with.

“The influencer industry is very big and very often, some of the campaigns we do are multimillion dollar ones,” she said.
 

“For such campaigns, the influencer earns in excess of Dh500,000. So, the licence has become extremely important for tracking purposes. Every permit has a Tax Registration Number (TRN), which is essential when billing. With such big budget shoots, it is extremely important that all licences are in place so that everything can be tracked and accounted for.”

Beginning July 1st, the Abu Dhabi Department of Economic Development (ADDED) will enforce fines up to Dh10,000 on social media influencers and advertising service providers who operate without a valid license. Individuals are required to pay Dh1,250, while companies must pay Dh5,000 for their licenses.
 

Since this announcement, experts have noted a steady rise in inquiries for these permits.
 

• “Every day I am receiving at least five calls enquiring about the licence and its costs,” - Firose Khan, operation manager at Arabian Business Centre.
   
• “The move by Abu Dhabi to introduce penalties has definitely encouraged people to conduct their social media campaigns according to the law. Callers usually enquire about the costs of these permits in Abu Dhabi, and they also ask about whether such penalties have been introduced in Dubai. Although there are no penalties in Dubai yet, we are strongly advising our clients to take an e-trader licence to carry out their influencer campaigns.”

Currently, influencers registered in other emirates can obtain a license to conduct campaigns in Abu Dhabi. According to the ADDED call center, they can apply for a campaign permit at Dh50 each, which can be done through the Tamm website.
 

Industry experts speculate that despite the absence of similar penalties in other emirates, there is a growing trend towards greater organization in the market.
 

“We have been seeing an increase in demand since January this year,” said Noushad Hassan, from Alhind Business Centre. “Ever since Dubai introduced influencer licences in 2018, the demand for them has been increasing. However, this year my appetite has been exceptionally high. I would say 2024 is the year when my company has issued the highest number of influencer licences during our operations in the country.”
 

According to Abeer, one of the reasons for this has been that the influencer marketing industry has grown exponentially. “This market has grown a lot in the UAE,”
 

“Many top brands, as well as those like us in the marketing industry, rely and depend on influencers to get brand names noticed. Traditional marketing methods are giving way to social media campaigns because people very diligently follow what their favourite influencers are doing, using and promoting."
 

Noushad said there were early indicators in the market that some sort of penalties would be introduced.
 

• “There was some chatter among companies and influencers that penalties were in the works,”
   
•  “Although these have only been introduced in Abu Dhabi currently, all concerned parties are taking this as a sign that similar rules may soon come up in all emirates. So, everyone who wants to run influencer campaigns are ensuring that they have the necessary permits.”
   

One individual not taking any chances is Indian beatboxer Ardhra Sajan. Despite residing in India, she frequently travels to the UAE for campaigns. "Since becoming an influencer, I have been regularly invited to create advertisements for companies and products based in the UAE," she stated.
 

“So, this year when I came to Dubai, I decided to get a licence to legally do campaigns. I think this license will be a main factor in differentiating hobby influencers from full-time content creators. I want to be seen as an influencer who takes her craft seriously and that is why I decided to invest in a licence," she added.