Individuals and institutions who carry out commercial activities on social media are warned they have two weeks left to get compliant with new Electronic Media Regulations, before the first week of June. Kacper Pempel / Reuters / File Photo
Individuals and institutions who carry out commercial activities on social media are warned they have two weeks left to get compliant with new Electronic Media Regulations, before the first week of JuShow more

Social media influencers have two weeks to comply with new rules



Individuals and institutions who carry out commercial activities on social media have been warned they must be fully complaint with new electronic media regulations before the end of May.

A workshop hosted by the National Media Council in Abu Dhabi explained the new measures, due to be enacted at the start of June. It emphasised the importance of obtaining the mandatory e-media licence.

Under the terms of the new law, influencers and other e-media businesses had three months to become licensed, through applications to the NMC's website by the first week in June. The permit relates to commercial activities that are conducted via visual and print media, advertising and news websites, electronic publishing and on-demand printing, including activities promoted through social media.

Those who fail to comply with the new rules will have their social media accounts and related websites or blogs shut down, as well as being hit with fines of up to Dh5,000.

“The Electronic Media Regulations form an essential component of regulating the media sector and have been enacted as a response to the rapid growth and spread of electronic media," said Dr Rashid Al Nuaimi, the council’s Executive Director of Media Affairs.

“The aim of the regulations is to enhance competitiveness, increase reliability and support the provision of balanced, responsible and impartial media content that respects the privacy of individuals and protects society’s various segments from negative influences.”

The National revealed last week that influencers who make money from promoting brands will need two licences under the new regulations costing Dh30,000, leading some to question whether it will still be financially worthwhile for them – a trade licence is needed before they can apply for the special e-media licence.

Plans to regulate the industry were first announced in March. At the time, it was not immediately clear what would be required of influencers, but media lawyers have since received clarification on the regulations.

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“The NMC requires the licensing of individuals who have accounts on social media and who conduct activities that are commercial in nature, such as advertisements that are done on a paid-for basis.

“Accounts, blogs and personal pages are not subject to these new regulations, including the accounts of influencers on social media, provided they are not commercial in nature. Individuals and organisations that voluntarily promote work are not affected by the electronic media regulations,” said Dr Al Nuaimi.

He called on all institutions, companies and individuals who engage in activities of a commercial nature to register with the NMC before the May 31, saying: “We are constantly seeking to strengthen our partnership with the various components of the media sector.”

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Other workplace saving schemes
  • The UAE government announced a retirement savings plan for private and free zone sector employees in 2023.
  • Dubai’s savings retirement scheme for foreign employees working in the emirate’s government and public sector came into effect in 2022.
  • National Bonds unveiled a Golden Pension Scheme in 2022 to help private-sector foreign employees with their financial planning.
  • In April 2021, Hayah Insurance unveiled a workplace savings plan to help UAE employees save for their retirement.
  • Lunate, an Abu Dhabi-based investment manager, has launched a fund that will allow UAE private companies to offer employees investment returns on end-of-service benefits.
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”