UAE social media influencers on finance to be licensed

Dubai: For UAE based influencers offering financial advice, there is a new license that they need to sign up for.

The UAE regulator, Securities & Commodities Authority, has brought out the Middle East's first 'finfluencer' license - which aims to supervise digital financial content.

"This ground-breaking initiative seeks to establish a clear governance framework for individuals offering investment analysis, recommendations, and financial promotions across digital platforms," said the statement.

The aim? To enhance investor protection in the UAE.

According to Waleed Saeed Al Awadhi, CEO of SCA, stated: “Introducing the Finfluencer license is not merely a regulatory measure - it is a strategic move to redefine the role of regulators in the digital economy.

"The SCA aspires to elevate global benchmarks of market integrity, foster transparency, and nurture a disciplined and trustworthy financial environment.”

On platforms such as YouTube and TikTok, a new breed of influencers have been talking about stocks, crypto, gold and offer all sorts of investment advice. Some of these digital channels have become quite influential, as the base of investors in the UAE and the wider Gulf sign up for IPOs and trade in crypto or currency assets.

* The 'finfluencer' license is available to individuals who offer financial or investment recommendations related to regulated products or entities within the UAE through digital or traditional media.

* Eligible applicants must register with SCA and 'comply with all applicable regulatory obligations'. This is to ensure the 'highest standards of investor protection and reinforcing public trust in the local capital markets'.

* The finfluencer can use traditional or social/digital media channels, such as written or audio social media platforms, participation in seminars, meetings, or forums, blogging, public appearances by any means, or through statements, opinions, or analyses about the present or future value, price, or expected performance.

* The UAE finfluencer license also includes individuals who engage the public through content, visuals, advice, recommendations, discussions, information, analyses, opinions, or reports related to financial investments or specific financial products within the country.