Influencer economy must balance creativity, compliance

A dynamic digital realm is growing day by day, inviting content creators to unleash their imaginations in multiple metaverses. Rapid innovations in social media and digital platforms have unlocked creative expressions and possibilities that were unthinkable just a few years ago.

Cloaked as celebrities, advertisers and trendsetters, content creators can rise to the title of becoming an “influencer” with as few as 1,000 followers, wielding a powerful tool that shapes audiences’ opinions, behaviors and social norms.

The wellspring of content spans a vast palette of interests, covering lifestyle aspirations, personal financial management, travel itineraries, parenting tips, recipes, book clubs, product and service recommendations, and more. Additionally, influencers are monetizing their activities through paid partnerships with local brands or multinational companies. Posts are designed to feel authentic and inviting, mixing storytelling with subtle nudges to experiment with products and services.

The creator economy has skyrocketed, with the market predicted to be worth about $480 billion by 2027, according to Goldman Sachs Research. It is emerging as a vibrant driver of economic activity and social engagement across the Middle East and North Africa region, with a current estimated value of $1.3 billion. The Gulf Cooperation Council is home to 263,000 social media influencers as of October, up 75 percent since 2023, according to the influencer marketing intelligence platform Qoruz.

Engaging, accessible and mostly free content attracts vast audiences. And with MENA’s whopping 228 million active social media users, encompassing about 46 percent of the population, it comes as no surprise that the influencer economy is flourishing. Demand could be attributed to the regional base of a predominantly young and digitally active population, widespread social media access, rapid e-commerce growth and consumer preference for lifestyle products and services.

As the influencer economy continues to scale, it is pivotal that MENA governments ensure that content creators abide by principles of accuracy, transparency and ethics. If unaddressed, unhealthy and unsafe spaces could be created, which could lead to lapses in judgment and may erode public trust.

With MENA’s 228 million active social media users, it is no surprise the influencer economy is flourishing

Sara Al-Mulla

For instance, it is important to protect audiences, especially those who are highly impressionable, from potentially harmful or misleading information, dangerous trends, bullying and unrealistic lifestyle portrayals. At the same time, influencers must disclose when their product or service recommendations are driven by paid partnership deals, while also ensuring that all claims are verified.

In response to these activities, regulation has emerged as an enabler to professionalize the industry, protect consumer rights and strengthen public trust. Standards and guidelines encourage influencers to elevate the quality and credibility of their content, while audiences benefit from safer, creative and more useful posts. Additionally, monitoring is needed for areas that could lead to harm, such as investment advice and medical claims or treatments. Content addressing children or young people should be particularly closely monitored to ensure suitability and safeguards.

Some governments in the MENA region have recognized the importance of regulating the influencer economy and, as such, have set down laws and measures to govern this ever-growing industry in ways that protect audiences, influencers and markets alike.

For instance, a 2023 UAE law mandates that individuals obtain a license or permit before engaging in media activities. It also requires content creators to respect all faiths and to uphold the culture, national identity and values of the UAE. The law protects privacy and prohibits material that may offend social cohesion, including rumors and false or misleading news.

Earlier this year, the UAE Media Council also introduced the Advertiser Permit, applicable for anyone publishing paid or unpaid promotional content on social media platforms. Additionally, the UAE’s Securities and Commodities Authority has introduced a resolution that is considered the region’s first regulatory framework for social media content creators who share financial information, aka “finfluencers.” Under this regulation, they must be certified, transparent, unbiased and disclose sources, risks, conflicts of interest and paid promotions.

Similarly, Saudi Arabia has mandated influencers to apply for licenses, in addition to publishing a set of standards that respect cultural sensitivities and privacy, and ensure the disclosure of advertisements, while also imposing penalties for misinformation and commercial deception. To ensure compliance, the General Authority for Media Regulation organizes regular awareness-building workshops targeting influencers and businesses.

Regulation acts as an enabler to professionalize the industry, protect consumer rights and strengthen public trust

Sara Al-Mulla

Other countries are exploring numerous implications of the influencer economy, including taxation rules, safeguards on children’s social media consumption, intellectual property protection and guidelines for medical or investment promotion. The French law regulating commercial influence, for example, has outlined a number of important articles, obligating influencers to be transparent about paid partnerships, promotional content and commercial collaboration. In general, influencers in France must ensure their content is respectful and not offensive to any demographic. And when content targets children or teenagers, it must clearly state that parental authorization is necessary.

Furthermore, the law prohibits influencers from promoting a number of products and services, such as plastic surgery or aesthetic medicine, financial products and services, and products containing nicotine. For example, the authorities can take action against influencers who promote health-related products without scientific evidence to support their claims. The latest legislative amendments, set to take effect in 2026, require that any collaboration exceeding €1,000 ($1,164), whether paid in cash or in-kind, must be formalized through a written contract.

While these laws and measures advance the industry’s practice of responsibility and accountability, what remains is the collective commitment from content creators to build authentic, engaging and trustworthy spaces. It is safe to say that audiences will continue to draw transformative inspiration from these storytelling channels for many years to come.

• Sara Al-Mulla is an Emirati civil servant with an interest in human development policy and children’s literature. She can be contacted at www.amorelicious.com.