The influencer marketing industry in the UAE is undergoing significant changes as advertising and marketing agencies are now ensuring that the influencers they work with are licensed. Abu Dhabi has announced that it will penalize those who conduct social media campaigns without the required permits. This move indicates a shift from a haphazard hobby industry to a well-regulated form of advertisement. Abeer Faisal, Marketing Specialist at Omorfia Group, highlighted the importance of licenses for tracking purposes, especially for multi-million dollar campaigns where influencers earn substantial amounts. The license contains the Tax Registration Number (TRN), essential for billing and accountability.
Starting July 1, Abu Dhabi Department of Economic Development (ADDED) will impose fines of up to Dh10,000 on social media influencers and establishments engaged in advertising services without a valid license. The license fee for individuals is Dh1,250 and for companies, it is Dh5,000. Enquiries for permits have increased since the announcement, with individuals and companies seeking clarification on the process and costs. Firose Khan, operation manager at Arabian Business Centre, stated that the penalties introduced by Abu Dhabi have encouraged compliance with the law and discussions about potential penalties in Dubai have also emerged.
Currently, influencers registered in other emirates can obtain a permit to conduct a campaign in Abu Dhabi by applying for a permit per campaign for Dh50 through the Tamm website. The increased demand for influencer licenses in the UAE indicates a market shift towards a more organized direction. Noushad Hassan from Alhind Business Centre noted a significant increase in demand for influencer licenses since January, attributing it to the exponential growth of the influencer marketing industry in the country. Companies and influencers are proactively obtaining the necessary permits to comply with regulations.
The market in the UAE has seen a surge in influencer marketing, with top brands leveraging influencers to increase brand visibility. Abeer emphasized the reliance on social media campaigns due to the dedicated following of influencers by consumers. Early indicators in the market suggested the introduction of penalties for non-compliance, leading companies and influencers to prioritize obtaining the necessary permits. Indian beatboxer Ardhra Sajan, a resident of India, emphasized the importance of obtaining a license for conducting campaigns in the UAE. She views the license as a crucial factor in distinguishing hobby influencers from serious content creators.
In conclusion, the influencer marketing industry in the UAE is undergoing a transformation towards a more regulated and organized form of advertising. With Abu Dhabi implementing penalties for conducting social media campaigns without licenses, industry players are taking proactive measures to comply with regulations. The increased demand for influencer licenses signifies the growing importance of influencers in marketing strategies and the need for formal recognition in the industry. Influencers and companies are recognizing the significance of licenses for maintaining accountability and professionalism in their campaigns. By obtaining the necessary permits, influencers can differentiate themselves as serious content creators and contribute to the growth of the influencer marketing industry in the UAE.
