The rise of finance influencers on social media platforms like YouTube, TikTok, and Instagram is changing the investment landscape. Many, especially Gen Z, rely on them for information when making decisions about stock investing, derivatives trading, personal finance, and cryptocurrency.

This May, the UAE launched a licensing regime for financial influencers, marking a major milestone in its push to regulate digital finance. 

Under the new framework introduced by the Securities and Commodities Authority (SCA), any individual sharing financial advice or promotional material on platforms such as social media, blogs, or podcasts must now obtain a finfluencer license if operating within the UAE.

The law applies to all written, audio, or visual content related to regulated financial products or services, including investment analysis, forecasts, or financial recommendations.

A LICENSE TO INFLUENCE

Explaining the framework are Marie Chowdhry, Partner at Pinsent Masons and Head of its Financial Regulatory and Fintech practice in the Middle East, and Lana Akkad, Associate in the firm’s Financial Services Practice.

To be licensed, an individual must be a certified financial analyst, accredited by the SCA or a recognised regulatory body, and independent, meaning they do not work for a licensed financial institution.

“An interesting point is how the law defines market influence,” says Chowdhry. According to the framework, an influencer is determined by meeting one or more of the following criteria:

• Having no fewer than 1,000 real followers;
• At least 6 months of experience in the financial or investment field;
• Repeatedly providing professional recommendations based on established criteria, studies, and analyses;
• Having previous recommendations quoted or reproduced by third-party specialized entities, such as media channels

Regulators also retain the flexibility to introduce new criteria as the ecosystem evolves. 

UNDERSTANDING THE SPIRIT OF THE LAW

The implications are significant. Influencers must now assess whether their content qualifies as financial advice and apply for a license if so. 

Akkad underscored the emphasis on “real followers,” highlighting how regulators are aware of creators’ use of bots to boost their numbers. 

Furthermore, financial firms must reassess influencer partnerships to avoid inadvertently breaching the law.

When the news broke in mainstream media, the financial and creator sectors took notice, with many touting it as a welcome initiative. 

Muhammad Alamer, a private wealth specialist and one of the UAE’s first SCA-registered finfluencers, calls the law “a significant step in supervising digital financial content,” adding that it promotes trust and integrity in a fast-growing fintech space and that it is “critical in combatting misinformation and misleading promotions in financial markets”. 

Ali Nanji, Regional Director – Middle East at Backbase, agrees. “We’re in an era where financial decisions are being influenced by 60-second videos, not just formal, accredited advisors,” he says. When you factor in the UAE’s age demographics — with the large majority (64%) of individuals in the 25-54 age bracket — and the nearly three hours people in the country spend on social media daily, it’s clear that the reach is powerful.

“Without oversight, it becomes a risk for consumers and the financial ecosystem,” Nanji adds. “But this law doesn’t restrict insight; it safeguards it.”

CREDIBILITY, EDUCATION, AND OPPORTUNITY

Though it introduces new requirements, the framework also opens a path to legitimacy. “Credibility and consistency are just as valuable as reach,” says Nanji. 

Akkad agrees that a regulatory stamp gives creators an edge, especially in jurisdictions that don’t yet have these standards. “By getting licensed, you present yourself as a trusted source.”

While Alamer calls the law “long-overdue accountability” in a space where misinformation has thrived, Nanji sees this as a turning point for financial literacy. “Licensed finfluencers don’t compete with banks—they complement them. They bring relevance, personalisation, and trust into financial conversations.” 

By translating complex concepts into accessible, lifestyle-driven narratives, content creators can improve understanding at scale. “With more licensed content creators, consumers will be exposed to better, more educational content by design,” Nanji adds. “It’s a strategic step toward a more informed society.”

GLOBAL MOMENTUM, LOCAL IMPACT

The UAE’s move comes amid a global trend toward regulating online financial advice. “This regulation aligns the UAE with jurisdictions like the UK, Hong Kong, and Australia,” says Chowdhry. “It shows a commitment to consistent, global oversight in digital finance and protecting its people.”

For instance, the UK’s Financial Conduct Authority (FCA) has issued over 50 warnings and several cease-and-desist letters against unlicensed creators. Alamer adds, “It filters out unqualified actors and attracts serious players. That strengthens the UAE’s position as a fintech hub.”

NAVIGATING COMPLIANCE 

The SCA has waived registration, renewal, and legal consultation fees for the first three years to encourage early adoption.“Given the law was introduced in May 2025, we expect this grace period to last until around May 2028,” says Akkad.

Alamer, an early adopter, notes that early compliance unlocks commercial opportunities beyond the waived fees, while non-compliance risks exclusion from brand partnerships, regulatory action, or even platform bans. 

“If someone operates without a license, they risk being fined, shut down, or ordered to cease online activities,” adds Chowdhry. “It’s better to seek clarity now than face reputational damage later.”

The new regulation is also driving demand for legal and compliance support. ‘We’re seeing a spike in individuals asking whether to pursue a finfluencer license or set up a fully regulated advisory business,’ says Chowdhry. “That’s where firms like ours can add value—guiding clients through business setup, providing regulatory advice, and ensuring everything is structured legally from day one.”

For the UAE, this isn’t just about regulating influence—it’s about cultivating the local industry and building a credible, future-ready fintech ecosystem where education, innovation, and trust can scale together.