Social media influencers must pay Dh30,000 to get licensed online
Influencers who promote brands in the UAE will need two licences and the cost could lead some to question whether it is financially worthwhile.
Plans to professionalise and regulate the social media industry were announced in March by the National Media Council. Media lawyers have since received clarification on the new regulations.
Influencers must now have a trade licence and then apply for a special e-media licence – the licence to enable them to post content advertising or endorsing brands on social media.
“We have also confirmed that with the National Media Council. Note that this can be a freelance visa, such as those provided by Dubai Creative Clusters Authority and twofour54,” said Fiona Robertson, a senior associate in the technology, media and telecommunications practice with Al Tamimi & Co.
“A trade licence varies depending on the type, the authority and the location that is chosen. The e-media licence is set at Dh15,000.”
The law is already in force but influencers and other e-media businesses were given three months – until the first week in June – to get an e-media licence. Those who fail to comply will have their social media accounts and related websites or blogs shut down, as well as receive fines of up to Dh5,000.
Influencers are people with thousands of followers on social media sites such as Twitter, Instagram and Snapchat. Some of the most popular Dubai-based accounts include The Rich Kids of Dubai, Supercar Blondie and Mo Vlogs. They use their popularity to build a brand and can command rich endorsements from companies to promote their products.
According to Forbes, top fitness instructors and yogis earned between US$3,000 (Dh11,000) and $25,000 per post. And YouTubers with millions of followers can receive up to $300,000 for a video partnership. Small-time restaurant reviewers and makeup artists may receive no more than a free meal or products for their endorsements.
Last month, members of the FNC called for closer observation of content on social media, particularly on apps such as Instagram and Snapchat.
Helen Farmer, who runs The Mothership Instagram account, which focuses on parenting and her experiences raising her children, already has a trade licence. In addition to her blog, she works as a wedding celebrant and conducts focus groups for businesses. She took out her trade licence last year on anticipation of the market getting tighter.
“And some the agencies and brands I was working with were starting to request one. It may be the case that I need another one, which is not ideal.”
Mrs Farmer said she would have to think carefully about whether it would be worth it.
“I have been fortunate over the past year that it has covered my blog and social media platforms as well. It’s a really tricky one. I will have to have a serious look at the numbers.”
Mizra Al Hosani, who runs the @sweetlifeinthesandpit Instagram account and a blog, said: “I’m a micro-influencer. I do have a decent amount of collaborations but it’s not worth taking out two licences for. For one, for sure. But two? No,” said the 28-year-old American.
But it is clear that some influencers’ endorsements are a lot more lucrative.
“One influencer [much loved] just quoted 75k for one FB post and one IG story ... I think the vast majority have the funds,” wrote a media professional in a discussion on Facebook.