Many social media influencers call the UAE their home, focusing on topics such as food, fashion, investment, and lifestyle. As the market becomes more powerful and popular, the Emirates is tightening the rules with a system of permits and fines for anyone earning money through social media platforms.
Abu Dhabi’s New Standards
Unlicensed social media influencers in Abu Dhabi face fines of up to Dh10,000 ($2,720) under a new crackdown by the authorities. Influencers who have registered as a company, which is common when a group wants to work together, also face fines up to Dh10,000 and could be shut down if they are found to be operating without the necessary permits.
These new rules took effect in Abu Dhabi starting July 1. You can buy the required licenses through Tamm, the Abu Dhabi government services website. For individuals, the permit costs Dh1,250. If you’re a group of influencers working together as a company, the permit will cost Dh5,000.
Influencers working in Abu Dhabi must also have a license from the UAE Media Council, as confirmed by the Abu Dhabi Department of Economic Development.
Ensuring Fair Play
An expert who regularly works with influencers said that the latest crackdown from Abu Dhabi authorities would ensure a fairer playing field. “My personal feeling is that, as an agency boss, this is very much needed to help drive standards and compliance in the industry, which has been lacking,” said Natasha Hatherall-Shawe, chief executive of Dubai marketing company TishTash, which helps connect companies with influencers.
She added that she hopes the announcement from Abu Dhabi authorities will lead to influencers being more transparent about posts that are paid or gifted, similar to the rules in the UK and the US.
Tax Obligations for Influencers
In 2021, the Federal Tax Authority issued a bulletin reminding influencers and artists that they must pay 5 percent VAT if they earn more than Dh375,000 annually. Any paid promotional work, such as promoting a product, company, or place online, is subject to this tax. Physical appearances and access to an influencer’s social media network are also taxable, according to the bulletin. Influencers must also consider the cost of any free products or experiences they receive in exchange for their services.
What About Influencers Outside Abu Dhabi?
If you’re making money from your social media posts anywhere in the UAE, you’ll need to apply for a license from the National Media Council. This license costs Dh15,000 in Abu Dhabi and Dubai, but the total costs can vary depending on the emirate in which you operate.
If you’re based in Dubai, you’ll also need an additional freelance trade license, which also costs Dh15,000, bringing the total to Dh30,000.
When these licenses were introduced in the UAE in 2018, it was announced that those who failed to comply would face fines up to Dh5,000.
Maintaining Transparency and Professionalism
While these rules may seem complex, they are essential for maintaining a professional and compliant industry. Platforms like Reviews Me offer influencers tools to grow their engagement, such as the ability to buy real reviews and comments. This service can help influencers maintain transparency and professionalism, ensuring they meet regulatory requirements while growing their online presence.
Conclusion
As the UAE continues to regulate the social media industry, staying informed and compliant with these rules will be key for any influencer looking to succeed in this vibrant market.