UAE Business Owners Praise New Copyright Music Licensing Fees for Supporting the Local Creative Community

A new government requirement mandating annual royalties for playing copyrighted music has been hailed by industry figures as a vital step toward establishing a functioning creative economy. The UAE's Ministry of Economy announced that commercial establishments must secure a music licence starting December 1. Venues such as restaurants, cafes, hotels, shopping malls, airlines, and fitness centres fall within the scope of this requirement, with fees to be overseen by two authorised bodies: Music Nation and the Emirates Music Rights Association.

While the detailed cost structure is yet to be published, fees will be scaled according to business size and the nature of music usage, with live acts and DJ sets incurring higher rates. Non-commercial spaces, including schools, government entities, and charity events, are exempt from the charges. Furthermore, the initiative establishes a Cultural Support Fund for Music, allocating 10 per cent of all collected fees to offer financial, technical, and artistic backing to musicians across all career stages.

This commitment to reinvesting in creators has garnered strong support from within the UAE's music scene. Tariq Al Nasrawi, co-founder of Peninsula Records in Abu Dhabi and a former writer with Universal Music, noted the profound impact of structured royalty systems. Reflecting on his own experience with the Performing Right Society, he emphasized his desire to give back and ensure that current and emerging artists receive comparable support.

Hakim Abderrazek, co-founder of the Dubai-based Raw Music Store, similarly voiced his backing for any measure that genuinely compensates artists, musicians, composers, and rights holders to develop the local music ecosystem. Meanwhile, Haider Madani, co-founder and managing partner of the Dubai music and dining venue Cassette, acknowledged that while any annual cost affects business operations, a framework returning value directly to the artists they feature daily is a welcome development.

Abdullah bin Touq, the UAE's Minister of Economy and Tourism, described the new framework as a crucial advancement in enhancing rights management in alignment with international practices, promoting transparency and fairness, and fostering the growth and prosperity of the music sector.

Despite the current absence of a published fee structure ahead of the deadline, local business owners remain confident. Mr Abderrazek expressed hope that the implementation will account for businesses that utilize music differently, such as record stores and HiFi retailers whose primary activity involves promoting and selling music and reproduction equipment, compared to venues using music merely for background ambience. Meanwhile, Mr Al Nasrawi affirmed that Peninsula Records will absorb the costs to maintain affordable access to music for UAE enthusiasts, viewing the new infrastructure as a natural evolution for a rapidly growing local music scene.