Circular Number 16 of 2024 regarding the compliance requirements for economic establishments in Abu Dhabi when contracting with social media influencers.

The Abu Dhabi Department of Economic Development (ADDED) has issued Circular Number 16/2024 on June 19, 2024, addressing the compliance requirements for licensed economic establishments in Abu Dhabi when contracting with social media influencers. This circular aims to ensure an ideal economic environment for business operations and to standardize the advertising practices within the Emirate.

Key Points of the Circular

1. License Requirement for Social Media Influencers:

Social media influencers must obtain a license from ADDED to engage in advertising activities through websites and social networking sites.

2. Permit Requirement for Economic Establishments:

Economic establishments must obtain a permit from ADDED when conducting any form of advertisements, including advertising, promotional, or marketing activities.

3. Validation of Licenses:

Economic establishments are required to verify that influencers and social networking sites possess a valid license issued by ADDED before entering into any contracts with them.

Penalties for Non-Compliance

Failure to comply with these regulations will result in penalties as outlined in the table of violations. Repeated violations can lead to substantial fines and eventual closure of the establishment. The penalties are structured as follows:

•1st Violation: AED 3,000

•2nd Violation: AED 6,000

•3rd Violation: AED 8,000

•4th Violation: AED 10,000

•Closure of the establishment upon further violations.

ADDED emphasizes the importance of adherence to these guidelines to avoid penalties and potential closure. This initiative is part of ADDED’s ongoing efforts to promote regulatory compliance and maintain a thriving economic environment in Abu Dhabi. Economic establishments are encouraged to ensure that all contractual agreements with social media influencers align with the stipulated requirements to support sustainable business practices.

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