UAE introduces music royalty fees for businesses

The UAE is introducing a new music licensing system that will require commercial venues to pay annual royalties when playing copyrighted music, marking a major step towards strengthening the country’s creative economy.

From December 1, 2026, businesses including restaurants, cafes, hotels, shopping malls, airlines and fitness centres will need to obtain a music licence.

The new framework is designed to ensure that artists, composers, musicians and other rights holders receive compensation when their work is used commercially.

New rules for businesses using music

The annual fee will apply to a wide range of commercial premises across the UAE.

The final pricing structure has not yet been published, but fees will vary depending on the size of the business and the type of music being used.

Businesses that play recorded background music are expected to pay lower fees than venues hosting live performances or DJ sets.

The licensing system will be managed by two authorised organisations: Music Nation and the Emirates Music Rights Association.

Non-commercial environments including schools, government entities and charity events will be exempt from the new requirement.

10% of fees will support musicians

One of the most significant elements of the new system is the creation of the Cultural Support Fund for Music.

The fund will receive 10 per cent of all collected fees and use the money to provide financial, technical and artistic support to musicians at different stages of their careers.

For many figures in the UAE’s music and hospitality industries, this is an important part of the initiative.

Rather than treating the licence simply as another business cost, the system creates a direct mechanism for supporting the people who produce the music used by commercial venues every day.

UAE music businesses welcome the move

Several local business owners have responded positively to the new framework.

Tariq Al Nasrawi, co-founder of Peninsula Records in Abu Dhabi, previously worked as a songwriter with Universal Music and has personal experience of receiving royalties through established rights organisations.

He believes similar systems can provide important support to both current and emerging musicians in the UAE.

Hakim Abderrazek, co-founder of Raw Music Store in Dubai, also supports the principle that musicians, composers and rights holders should be compensated for their creative work.

Raw Music Store operates stores in Al Quoz and Oud Metha, selling vinyl records and music equipment while also hosting curated listening experiences.

Music is central to Dubai’s hospitality scene

The changes will also affect restaurants and lifestyle venues where music forms an important part of the customer experience.

Haider Madani, co-founder and managing partner of Dubai music and dining venue Cassette, said the introduction of a royalty framework was expected as the UAE’s creative sector continued to develop.

Although the new licence represents an additional annual operating cost, he noted that music is a fundamental part of Cassette’s identity.

For venues built around carefully selected playlists, DJs or live performances, music is not simply background entertainment. It plays a direct role in creating atmosphere, shaping customer experience and defining the personality of a space.

Knowing that part of the fees will directly support musicians may therefore make the additional cost easier for businesses to understand.

Businesses call for fair implementation

While the general response has been positive, some business owners are calling for flexibility in how the new system is applied.

Not every business uses music in the same way.

A restaurant playing a background playlist has very different requirements from a record store, HiFi retailer or music-focused venue whose core business depends on demonstrating, promoting or selling music.

Industry representatives hope the final fee structure will recognise these differences rather than applying the same approach to every type of business.

With the pricing details still to be announced, companies will be watching closely to understand how much they will need to pay from December.

A more developed creative economy

The introduction of music royalties reflects the rapid growth of the UAE’s wider music and entertainment sector.

Dubai and Abu Dhabi have become major destinations for international concerts, festivals, DJs and live performances, while the local creative community continues to expand.

As the industry becomes more established, infrastructure around copyright management, royalties and artist compensation is also evolving.

The UAE’s Minister of Economy and Tourism, Abdullah bin Touq, said the new framework is intended to improve transparency and fairness in rights management while supporting the continued growth of the music sector.

What changes from December 1

For businesses, the immediate change is straightforward: commercial venues using copyrighted music will need to ensure they have the appropriate licence.

The exact financial impact will depend on the final fee structure and the way each business uses music.

For artists, however, the system represents something more significant.

It creates a formal mechanism through which the commercial use of music can generate income and support for the people behind it.

As the UAE continues building its creative industries, the new royalty framework could become an important part of a more mature music ecosystem — one where businesses can continue using music as part of their customer experience while creators receive a clearer share of the value their work generates.