From 1st July 2024, all licensed economic establishments must adhere to its new requirements when engaging social media influencers for advertising and for advertising on social media platforms and websites.
Effective 1st July 2024, the Abu Dhabi Department of Economic Development (ADDED) has mandated that all licensed economic establishments must adhere to its new requirements when engaging social media influencers for advertising and for advertising on social media platforms and websites. Both economic establishments and social media influencers are now required to obtain licenses from ADDED to legally participate in advertising services on websites and social media platforms.
Only establishments with licenses can contract with the licensed influencers. This significant update aims to regulate advertising activities and ensure compliance amidst the rapid changes in digital advertising and content marketing across the Emirate.
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Penalties and Fines
Imposition of penalties and fines will commence in early July following the implementation of the new licensing requirement. Penalties for non-compliance can reach up to AED10,000 and may also result in the closure of such violating establishments.
Licence Fees:
The fee for the licenses are as follows:
For Individual: AED 1,250
For Businesses: AED 5,000
Government companies are also not exempt from this requirement. All entities operating in the Emirate must obtain this licence for advertising services via electronic platforms and for engaging social media influencers to advertise for them.
Branches of companies based outside the emirate of Abu Dhabi must also obtain the necessary permits from ADDED to practice advertising activities within Abu Dhabi.
Having a permit from the UAE Media Council does not exempt social media influencers from obtaining the necessary licences from ADDED. Compliance with this new regulation is essential to avoid fines and penalties.
The licenses can be obtained from the Department of Economic Development Services. Influencers from outside the UAE can also obtain a licence provided they have an Emirates ID card or unified number.
Currently, there are 543 licences issued for practicing advertising services on electronic platforms and social media. This number is expected to increase significantly after the new decision comes into effect.
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