How to Set up a Social Media Marketing Business in the UAE

Author: Rashid Mohammed
Published: March 25, 2024

Overview

In today's digital world, Social Media Marketing has become a vital tool for reaching and engaging potential customers. If you're gearing up to launch your business and feeling unsure about where to begin with setting up a marketing agency, understanding the landscape of Social Media Marketing, particularly in the United Arab Emirates (UAE), can provide valuable guidance.

UAE Social Media Marketing Market Landscape

The UAE's digital scene is vibrant and fast-paced, reflecting its rapid economic growth. Key market statistics include:

Social media ad spend in the UAE: Expected to reach US$358.2 million in 2024
Projected annual growth rate: 5% by 2028
Facebook users in UAE: Over 9.6 million active users

These numbers highlight the importance businesses place on using social media platforms and marketing strategies to boost their presence and connect with their target audience.

Popular Social Media Platforms in the UAE

Among social media platforms in the UAE, Facebook reigns supreme with over 9.6 million active users. Its powerful advertising tools and large user base make it indispensable for businesses aiming to enhance visibility and engage with potential customers. Additionally, platforms like Instagram and X (formerly Twitter) have gained popularity among businesses seeking to establish a strong online presence and interact meaningfully with their audience.

Business Activity Codes for Social Media Marketing in the UAE

When establishing your Social Media Marketing business in the UAE, you can select from the following business activities under your license:

7310.16 – Social Media Services

Social media services encompass a comprehensive range of advertising and marketing activities specifically tailored for social media platforms. These services are aimed at helping businesses leverage the power of social media to enhance brand visibility, engage with their target audience, and drive business objectives.

Services Included

Creation and realisation of advertising campaigns:

Creating and placing advertisements on various social media platforms such as Facebook, Instagram, Twitter, LinkedIn, TikTok, etc.
Developing creative content for ads
Strategizing ad placement
Managing campaigns

Conducting marketing campaigns aimed at attracting and retaining customers:

Promoting products or services through social media channels
Engaging in point-of-sale marketing
Direct mail advertising
Providing marketing consulting to businesses

Distribution of advertising material or samples:

Disseminating advertising content through social media platforms
Distributing product samples to reach target audiences effectively

Provision of advertising space on social media platforms:

Selling advertising space on various social media platforms to businesses or individuals

Creation of stands and other display structures and sites:

Designing and setting up virtual storefronts
Creating pages or profiles on social media platforms
Showcasing products or services effectively

Services NOT Included

Social media services do not include:

Publishing advertising material
Producing commercial messages for traditional media (radio, television, film)
Public relations activities
Market research
Graphic design
Advertising photography
Organising conventions and trade shows

Regulatory Requirements

Requirement	Status
Third-party Approval	Not required
Filing of Economic Substance Return	Exempt
Anti-Money Laundering Compliance	Exempt

7310.18 – Online Advertising

Online advertising refers to the provision of advertising services specifically tailored for the internet and digital platforms. It encompasses a wide range of activities aimed at promoting products or services online and attracting potential customers.

Services Included

Creation and realisation of advertising campaigns:

Creating and placing advertisements on various online platforms including:
- Websites
- Search engines
- Social media
- Email newsletters
- Mobile apps
Developing creative content for ads
Strategizing ad placement
Managing campaigns effectively to reach target audiences

Conducting marketing campaigns aimed at attracting and retaining customers:

Promoting products or services through digital channels
Engaging in point-of-sale marketing on e-commerce platforms
Conducting direct email advertising campaigns
Providing marketing consulting services to businesses seeking to improve their online presence and reach

Distribution of advertising material or samples:

Disseminating advertising content through digital channels such as:
- Email
- Social media
- Display advertising networks
Distributing product samples to reach potential customers effectively

Provision of advertising space on online platforms:

Selling advertising space on:
- Websites
- Social media platforms
- Search engines
- Other digital platforms

Creation of stands and other display structures and sites:

Designing and setting up virtual storefronts
Creating landing pages
Building promotional microsites on the internet
Showcasing products or services effectively to online audiences

Services NOT Included

Online advertising does not include:

Publishing advertising material in traditional print or broadcast media
Producing commercial messages for radio, television, or film
Public relations activities
Market research
Graphic design
Advertising photography
Organising conventions and trade shows

Regulatory Requirements

Requirement	Status
Third-party Approval	Not required
Filing of Economic Substance Return	Exempt
Anti-Money Laundering Compliance	Exempt

7310.21 – Social Media Consultancy

Social media consultancy involves specialised services provided by professionals or firms to help businesses, organisations, or individuals effectively use social media platforms for various purposes like marketing, branding, and customer engagement.

Services Included

Consultants offer a comprehensive range of services, including:

Strategic Advisory Services:

Advice on social media marketing strategies
Creative content development tailored for online audiences
Media planning and buying specifically for digital channels

Client Engagement:

Working closely with clients to understand their goals and objectives
Providing expert insights and recommendations
Maximising presence and engagement on social media platforms

Marketing Campaign Support:

Conducting marketing campaigns aimed at attracting and retaining customers
Promotion of products
Point-of-sale marketing techniques
Direct mail advertising strategies customised for online audiences

Services NOT Included

Social media consultancy excludes:

Publishing advertising material
Producing commercial messages for traditional media channels (radio, television, film)
Public relations activities
Market research
Graphic design
Advertising photography
Organising conventions and trade shows
Mailing activities

Regulatory Requirements

Requirement	Status
Third-party Approval	Not required
Filing of Economic Substance Return	Exempt
Anti-Money Laundering Compliance	Exempt

Comparison of Social Media Marketing Business Activities

Feature	7310.16 Social Media Services	7310.18 Online Advertising	7310.21 Social Media Consultancy
Focus	Social media platform-specific advertising and marketing	Internet and digital platform advertising	Strategic advisory and consulting services
Primary Platforms	Facebook, Instagram, Twitter, LinkedIn, TikTok	Websites, search engines, social media, email, mobile apps	Social media platforms
Campaign Creation	Yes	Yes	Advisory only
Ad Placement	Social media platforms	All online platforms	Not included
Marketing Consulting	Yes	Yes	Primary focus
Content Development	Yes	Yes	Yes (advisory)
Third-party Approval	Not required	Not required	Not required
Economic Substance Return	Exempt	Exempt	Exempt
AML Compliance	Exempt	Exempt	Exempt

Frequently Asked Questions

What business activities can I select for a social media marketing business in the UAE?

You can select from three main business activities:

7310.16 – Social media services (focused on social media platform advertising)
7310.18 – Online advertising (broader digital advertising across all online platforms)
7310.21 – Social media consultancy (strategic advisory services)

Each covers different aspects of social media marketing operations.

Do I need third-party approvals for social media marketing business activities in the UAE?

No third-party approvals are required for business activities 7310.16, 7310.18, or 7310.21.

Are social media marketing businesses exempt from Economic Substance Return filing?

Yes, business activities 7310.16, 7310.18, and 7310.21 are all exempt from Economic Substance Return filing requirements.

Are social media marketing businesses subject to Anti-Money Laundering Compliance in the UAE?

No, business activities 7310.16, 7310.18, and 7310.21 are exempt from Anti-Money Laundering Compliance requirements.

What is the difference between social media services (7310.16) and online advertising (7310.18)?

Social media services (7310.16) focus specifically on advertising and marketing activities tailored for social media platforms like Facebook, Instagram, Twitter, LinkedIn, and TikTok. Online advertising (7310.18) has a broader scope, covering advertising services across all internet and digital platforms including websites, search engines, social media, email newsletters, and mobile apps.

What activities are NOT included in social media marketing business licenses?

All three business activities (7310.16, 7310.18, 7310.21) exclude:

Publishing advertising material in traditional media
Producing commercial messages for radio, television, or film
Public relations activities
Market research
Graphic design
Advertising photography
Organising conventions and trade shows

Next Steps for Setting Up Your Business

To proceed with setting up your social media marketing business in the UAE:

Calculate your business setup costs using the cost calculator
Choose from customized company setup packages to find your perfect fit
Get your business license in the UAE

Related Resources:

Activity Hub – Explore unique business ideas in Dubai
Business Setup Guide – Navigate the essentials of business setup
Cost Calculator – Calculate your business setup costs
Company Setup Packages – Customized packages
Business License – Get your business license in the UAE