Abu Dhabi's Department of Economic Development (ADDED) has issued a firm warning to all licensed businesses in the emirate: contracting with social media influencers who lack proper authorisation is a punishable offence. Several stores have already been shut down, and fines between Dh3,000 and Dh10,000 have been imposed for violations of Abu Dhabi influencer licensing rules.
ADDED's June 20 Circular: Three Compliance Requirements
In a circular released on June 20, 2024, ADDED outlined three areas every business must comply with before engaging an influencer for any promotional activity.
Licensing for influencers. Social media influencers must obtain a licence from ADDED in order to legally offer advertising or marketing services through any digital platform or website. Businesses that hire unlicensed influencers share responsibility for the violation.
Permits for advertising activities. Any advertisement, marketing campaign, or promotional activity — whether carried out by an organisation or an individual, profit-oriented or not — requires a permit from ADDED. This applies equally to sponsored posts, product reviews, and brand partnerships.
Valid media business licences. Because social networking platforms fall under the scope of the Media Business Licence, companies must confirm that ADDED has issued them a valid licence before entering into any contract with influencers or social media platforms.
Roots in the 2018 National Media Council Rules
These enforcement actions are not new. The National Media Council (NMC) introduced regulations in 2018 requiring social media influencers to obtain a media licence if they intend to benefit financially from brand promotions. The Securities and Commodities Authority (SCA) reinforced those rules in June 2019, warning that anyone posting sponsored content without a licence would face a fine of Dh5,000.
The NMC also empowers authorities to monitor social networks and online communities for unlawful commercial activity, giving regulators the tools to identify non-compliant accounts.
Instagram and TikTok Boom Drives Enforcement
The rapid growth of influencer marketing on platforms such as Instagram and TikTok has brought the licensing framework into sharp focus. Prominent content creators now command significant fees for promoting brands and products to large, engaged audiences. ADDED's stepped-up enforcement reflects the commercial scale these arrangements have reached.
The regulations cover news websites, electronic publishing outlets, and all commercial activities conducted through social media inside the UAE. Conducting any of these activities without an NMC licence is unlawful.
One important carve-out: regular social media users who post unscripted, unpaid testimonials about a product or service are not subject to the licensing requirements. The rules target paid, commercial arrangements only.
What Businesses Must Do Before the Next Campaign
Any company planning an influencer campaign in Abu Dhabi should take these steps before signing a contract:
- Confirm the influencer holds a current, valid ADDED-issued media licence. - Ensure the company itself holds the appropriate Media Business Licence from ADDED. - Obtain an ADDED permit for the specific advertising or marketing activity.
Failure on any of these points can result in fines of up to Dh10,000 and, for persistent offenders, closure of the business establishment.
