UAE sets new finfluencer license to regulate digital finance content

The United Arab Emirates’ Securities and Commodities Authority (SCA) has introduced a new “Finfluencer” license to regulate digital financial content across the country.

This marks the Middle East’s first formal regulatory framework aimed at supervising individuals who provide investment analysis, recommendations, and financial promotions on digital platforms.

H.E. Waleed Saeed Al Awadhi, CEO of the SCA, described the license as “not merely a regulatory measure; it is a strategic move to redefine the role of regulators in the digital economy.”

Al Awadhi emphasised that the SCA aims to raise global standards of market integrity and foster a disciplined financial environment through evolving regulatory models.

The license applies to individuals offering financial or investment advice related to regulated products or entities within the UAE, whether through digital or traditional media.

Applicants must register with the SCA and comply with regulatory obligations designed to protect investors and strengthen public trust in local capital markets.

The move comes amid a surge of social media influencers, or “finfluencers,” providing financial advice without formal qualifications or regulatory oversight.

This trend has raised concerns about the spread of unverified or misleading financial information.

A study by Coinwire found that memecoin-promoting influencers on the social media platform X, with over 200,000 followers, led to 39% of investors experiencing losses within one week and 89% within three months after acting on their advice.

To address these risks, the SCA now requires finfluencers who offer recommendations related to buying, selling, or holding financial products or virtual assets in the UAE to register with the authority.

This requirement also covers those who engage the public through content, visuals, advice, or discussions about financial investments or specific products.

By implementing this license, the UAE regulator seeks to bring greater accountability and oversight to the growing digital financial advice sector.