The United Arab Emirates has introduced the region’s first licensing system for finance marking a major regulatory milestone in digital financial governance. Announced by the Securities and Commodities Authority (SCA), the new Finfluencer Licence introduces mandatory registration for individuals providing financial advice or recommendations on social media and other platforms, if they have a following of 1,000 people or more and target UAE audiences.
This development is a strategic response to the increasing influence of unregulated financial content online, and it seeks to uphold market integrity, transparency, and investor protection in the digital age.
“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,” said H.E. Waleed Saeed Al Awadhi, CEO of the SCA.
Industry welcomes Regulatory clarity
The introduction of the Finfluencer Licence has been widely welcomed across the financial sector as a much-needed step toward restoring trust in digital financial discourse. Industry observers describe the move as timely and necessary, particularly in light of the growing volume of unqualified financial advice circulating on social media—often unchecked and potentially harmful.
The regulation is seen as a way to reset the playing field, reinforcing the value of credible, long-term financial advisory in a market saturated with unverified and speculative content. It offers clearer standards and accountability for financial communications in the digital space, while also helping consumers distinguish between entertainment and legitimate financial guidance.
Global context and drivers behind the UAE’s Finfluencer Licence
The UAE’s decision mirrors a global shift towards regulating digital financial advice, following rising investor harm linked to unlicensed content creators:
- In the United Kingdom, the Financial Conduct Authority (FCA) has penalised influencers for promoting unregulated investment schemes and failing to disclose paid promotions.
- The U.S. Securities and Exchange Commission (SEC) has issued high-profile fines against celebrities and content creators who promoted cryptocurrencies without appropriate disclosures.
- Singapore and Australia have also tightened digital finance regulations, targeting misleading financial promotions and unauthorised investment advice online.
In the UAE itself, several influencers have been associated with questionable trading platforms and unregulated promotions, often delivered via Instagram, TikTok, or public seminars. The low barrier to entry for online content creation, coupled with high public engagement, has increased the risk of retail investor manipulation and financial loss.
The Finfluencer Licence ensures that the UAE is aligned with international best practices, while also setting a regional precedent for formal oversight in the digital financial space.
Scope and application of the new Regulation
Unlike traditional regulatory frameworks that target licensed firms, the SCA’s regulation applies to individual content creators across all media formats—including public speaking events, seminars, and television appearances—if they promote investment-related content relevant to the UAE.
Importantly, the rules also apply to individuals based outside the UAE if they are actively targeting UAE audiences. This expands the jurisdictional reach of the SCA and strengthens investor protection from cross-border misconduct.
Accessible Compliance: No Registration Fees for three years
To promote compliance and avoid deterring legitimate creators, the SCA has waived all registration, renewal, and legal consultation fees for three years.
However, applicants must still meet certain eligibility conditions, such as:
- Holding a certification in financial analysis or equivalent
- Demonstrating at least six months of financial advisory experience
- Providing credible and analytical content, supported by third-party recognition or data
- Violations of the regulation may attract penalties of up to AED 200,000 (still to be officially published), along with possible license revocation and further legal action, depending on the nature and severity of the breach.
Market impact and investor behaviour
The regulation comes at a time of growing public interest in financial content shared online. Financial professionals increasingly observe clients referencing investment ideas they encounter on platforms like TikTok and Instagram, often seeking quick insights into trending strategies.
This shift highlights the importance of bridging the gap between general financial content and personalised, regulated advice. While professional advisory firms remain cautious about engaging with influencers, the introduction of the licence offers a clearer framework for future collaborations—ensuring that any partnerships are built on shared values of trust, quality, and a long-term focus on client outcomes.
A step towards a Safer and Smarter Market
The Finfluencer Licence reflects the UAE’s broader strategy to establish itself as a transparent, trustworthy, and globally competitive financial hub. By proactively addressing the risks associated with unregulated digital financial content, the country underscores its commitment to investor protection, financial literacy, and disciplined market conduct. This regulatory step sends a clear signal to both local and international investors that the UAE is not only open for business, but is also committed to maintaining the highest standards of integrity and accountability in its financial sector.
Challenges Ahead: Enforcement and Education
While the regulation marks a significant step forward, its effective implementation—particularly across borders—may present challenges. Enforcement could require cooperation with digital platforms to restrict non-compliant content and identify violators, especially those based outside the UAE but targeting its residents.
Importantly, the success of this initiative will rely not only on enforcement mechanisms, but also on raising awareness among content creators and the public. Educating both groups about the importance of licensed financial advice and the risks associated with misinformation will be critical to fostering a responsible and informed investment environment.
Conclusion
The UAE’s Finfluencer Licence represents a forward-looking and internationally aligned step toward digital investor protection. It balances accountability with accessibility, fostering a more informed, secure, and ethically guided financial environment—both online and off.
While the regulation marks a significant step forward, its effective implementation—particularly across borders—may present challenges. Enforcement could require cooperation with digital platforms to restrict non-compliant content and identify violators, especially those based outside the UAE but targeting its residents.
Importantly, the success of this initiative will rely not only on enforcement mechanisms but also on raising awareness among content creators and the public. Educating both groups about the importance of licensed financial advice and the risks associated with misinformation will be critical to fostering a responsible and informed investment environment.
