No licence, no promotion: Saudi Arabia tightens influencer ads rules

New rules restrict media activities for individuals on visit visas without licensing

Saudi Arabia
Caption: Saudi Arabia enforces new rules requiring influencers, both local and visiting, to obtain a ‘Mouathaq’ license for advertising, ensuring compliance with national media laws.
Source: Unsplash

Saudi Arabia has introduced new regulations requiring influencers, both local and foreign, to obtain a "Mouathaq" (trusted) license to legally advertise on social media platforms.

The move, announced by the Saudi Ministry of Commerce, aims to regulate the growing influencer marketing sector and ensure that advertising in the Kingdom adheres to established media laws.

The new guidelines prohibit businesses from promoting celebrities and influencers who visit Saudi Arabia on tourist visas unless they possess the necessary licensing.

The Ministry's directive applies to both residents and visitors, meaning that any commercial advertisements featuring influencers in Saudi Arabia must now comply with licensing requirements.

Licence requirements for all influencers

The “Mouathaq” license is mandatory for anyone seeking to advertise on social media platforms such as Instagram, TikTok, YouTube, and Snapchat, regardless of whether they are Saudi residents or visiting the Kingdom. The license is issued by the General Authority for Media Regulation (GCAM) and applies to all influencers, content creators, and businesses engaging in promotional activities through social media.

Under the new regulations, foreign influencers visiting Saudi Arabia must either apply for a commercial registration or partner with an authorised advertising agency to obtain the required license. Residents and non-residents alike are subject to the same requirements, ensuring that influencer-driven campaigns remain compliant with local laws and regulations.

Regulating Influencer Marketing

The Ministry of Commerce's new directive aims to standardise influencer marketing in Saudi Arabia by introducing a system that ensures transparency in advertising. In addition to preventing unlicensed celebrity promotions, the license also aims to safeguard the interests of businesses by providing a structured framework for working with influencers.

By requiring influencers to hold a valid license, the government intends to address concerns around fraudulent practices in the influencer marketing industry, such as the use of fake followers and inflated engagement rates. The new licensing system is designed to provide a legitimate framework for influencer advertising, benefiting both content creators and advertisers.

Licensing Process and Conditions

To obtain a “Mouathaq” license, influencers must meet certain criteria outlined by the GCAM. This includes the requirement for foreign content creators to own at least 50% of a registered advertising agency or marketing firm involved in visual, audio, or digital media. Local influencers, on the other hand, must comply with less stringent requirements but still must adhere to the country’s advertising laws.

The license is valid for three years, during which influencers are permitted to work with brands and promote products and services in line with Saudi Arabia’s media guidelines. Influencers who fail to comply with the new licensing rules could face penalties, including fines or restrictions on future advertising activities.

In a bid to ensure full compliance, the Ministry of Commerce has warned that businesses failing to verify influencer licenses will face legal action. This directive is intended to strengthen regulatory oversight over the influencer marketing industry, which has become an integral part of modern advertising in Saudi Arabia.

Previously, influencers visiting the Kingdom on tourist visas were allowed to engage in commercial promotions without restrictions. The new rules close this loophole and mandate that all influencer-driven advertising campaigns, regardless of the influencer’s nationality or residency status, must follow legal procedures.

This development follows similar moves in other countries, such as the United Arab Emirates, which introduced a similar licensing system for influencers in 2018. The measures are part of a wider effort to regulate the rapidly growing influencer industry across the Gulf region.

Impact on Influencers and Advertisers

The introduction of mandatory licensing is expected to have a significant impact on both influencers and the businesses that rely on them for marketing. While the licensing process will introduce additional costs for content creators, it is also seen as a step toward professionalising the sector and improving transparency in influencer marketing.

In addition, businesses that hire influencers will benefit from a more structured approach to advertising, which ensures that influencers they collaborate with are operating within the bounds of Saudi Arabia's legal framework.