Across the Emirates, a long-standing gap between artistic creation and commercial benefit is beginning to close. Starting December 1, businesses that use music to shape their atmospheres — from hotel lobbies to fitness floors — will pay annual licensing fees, with a portion flowing directly back to the musicians whose work fills those spaces. The UAE's Ministry of Economy frames this not as a new tax but as an alignment with the global architecture of creative rights, a signal that the Emirates' music culture has matured into something worth protecting.
UAE's new music royalty fee draws support from business owners backing creative ecosystem
Money going back to the artists changes how we view it
Mark
Why did business owners accept this so quickly? Usually new fees face pushback.
Mimi
Because the money goes back to the artists. That changes the psychology entirely. These are people who already believe in music—they're not just using it as filler.
Mark
But they don't know the actual cost yet. How can they support something they haven't priced?
Mimi
Fair point. But they've already decided the principle is sound. The cost will sting, sure, but they're betting it's worth it to have a functioning system.
Mark
What about the record store owner's concern—that different businesses use music differently?
Mimi
That's the real test. A cafe and a record store aren't the same thing. If the fee structure doesn't account for that, you'll see support evaporate fast.
Mark
So this could still fail?
Mimi
Not fail, exactly. But it could become unfair. And unfairness kills goodwill faster than cost ever does.
The Pulse
- A December 1 deadline is approaching with no published fee schedule, leaving restaurants, cafes, hotels, and fitness centers uncertain about what they will owe and how their business models will be assessed.
- The absence of a tiered framework raises a pointed tension: a record store built around demonstrating music occupies fundamentally different ground than a cafe using it as background ambiance, yet both may face the same licensing logic.
- Two authorized bodies — Music Nation and the Emirates Music Rights Association — will administer the system, with live performances and DJ sets commanding higher rates than recorded background music.
- Ten percent of all collected fees will be redirected into a Cultural Support Fund, transforming what could feel like a compliance burden into a pipeline of financial and artistic backing for UAE musicians at every career stage.
- Business owners, including venue founders and independent record store operators, have largely embraced the framework, viewing it as a legitimate investment in the creative community rather than a regulatory imposition.
Across the Emirates, a long-standing gap between artistic creation and commercial benefit is beginning to close. Starting December 1, businesses that use music to shape their atmospheres — from hotel lobbies to fitness floors — will pay annual licensing fees, with a portion flowing directly back to the musicians whose work fills those spaces. The UAE's Ministry of Economy frames this not as a new tax but as an alignment with the global architecture of creative rights, a signal that the Emirates' music culture has matured into something worth protecting.
Starting December 1, commercial spaces across the UAE — restaurants, cafes, hotels, shopping malls, airlines, and fitness centers — will be required to pay annual fees to legally play copyrighted music. Schools, government offices, and charity events are exempt. Two authorized bodies will manage the collection, with fees scaled by business size and music type; live performances and DJ sets will carry higher rates than ambient recorded music. The government has committed to directing 10 percent of all collected fees into a Cultural Support Fund, money that will flow back to musicians in the form of financial, technical, and artistic support across all stages of their careers.
The Ministry of Economy framed the announcement as an overdue alignment with international practice. Minister Abdullah bin Touq described it as a step toward transparency and fairness in rights distribution — a recognition that the UAE's music scene has matured enough to require the infrastructure that established markets have relied on for decades.
What has surprised observers is how readily business owners have accepted the framework. Tariq Al Nasrawi, co-founder of Peninsula Records in Abu Dhabi, drew on his own experience having royalties collected on his behalf by the Performing Right Society during his years writing for Universal. He sees the new system as a chance to reciprocate, and his label will absorb whatever fee arrives. Hakim Abderrazek of Raw Music Store in Dubai expressed broad support for anything that genuinely develops the music ecosystem. Haider Madani, co-founder of Cassette — a music and dining venue — acknowledged the cost but framed it as a tangible investment in the artists his venue plays every day.
Not every concern has been resolved. With four months remaining and no published fee schedule, some owners worry about fair implementation. Abderrazek raised a pointed distinction: a retailer whose entire business model revolves around demonstrating music operates differently from a cafe using it as background ambiance — asking both to pay the same way, he suggested, would be like charging a television retailer a content fee every time it shows a customer how a screen works. How regulators will differentiate between these models remains an open question. Even so, the broader industry consensus has settled: the UAE's creative economy has grown enough to warrant this infrastructure, and the commitment to return money to creators has reframed the system as something closer to a collective investment than a compliance cost.
Starting December 1, commercial spaces across the Emirates will need to pay annual fees to legally play copyrighted music. Restaurants, cafes, hotels, shopping malls, airlines, and fitness centers are all in scope. Schools, government offices, and charity events are exempt. Two authorized bodies—Music Nation and the Emirates Music Rights Association—will manage the fees, which will be scaled based on business size and the type of music used, with live performances and DJ sets commanding higher rates. The cost structure has not yet been released, but the government has already committed to directing 10 percent of all collected fees into a Cultural Support Fund for Music, money that will flow directly back to musicians in the form of financial, technical, and artistic support across all stages of their careers.
The announcement came from the UAE's Ministry of Economy this week, framed by officials as an overdue alignment with international practice. Abdullah bin Touq, the Minister of Economy and Tourism, called it "an important step in enhancing rights management in line with international practice, strengthening the principles of transparency and fairness in their distribution, and improving the regulation of the music sector in a way that supports its growth and prosperity." The timing reflects a music scene that has matured enough to require the kind of infrastructure that established markets have relied on for decades.
What has surprised observers is the speed with which business owners have embraced the framework. Tariq Al Nasrawi, who co-founded Peninsula Records in Abu Dhabi after years writing music for Universal, sees the system as a natural extension of his own experience. He benefited from the Performing Right Society collecting royalties on his behalf and now views the UAE's new requirement as a chance to reciprocate. "I have always been incredibly thankful for the work that the Performing Right Society did in collecting royalties on my behalf," he said. "So, on a personal note, I should never forget that and ensure that both current and up-and-coming artists also have that same support. Perhaps it is my time to give back in some way." Peninsula Records will absorb whatever fee arrives, he added, committed to continuing to offer affordable music to listeners in the Emirates.
Hakim Abderrazek, co-founder of Raw Music Store in Dubai, which sells vinyl, demonstrates high-fidelity equipment, and hosts curated listening sessions, expressed strong support for artist compensation. "Anything that genuinely supports musicians and helps develop the music ecosystem in the UAE is something I would support," he told The National. Haider Madani, who co-founded Cassette, a music and dining venue in Dubai, acknowledged that any new annual cost becomes a line item on the balance sheet. But because music is central to what Cassette does, and because he knows the fees will support the artists his venue plays daily, the framework feels like a legitimate investment in the creative community. "Supporting the creative community here has always been important to us, and this is a tangible way of doing that," he said.
Not all concerns have been resolved. With four months remaining before the December deadline and no published fee schedule, some business owners worry about fair implementation. Abderrazek raised a crucial distinction: a record store or audio retailer whose entire business model revolves around demonstrating and selling music operates fundamentally differently from a cafe using music as background ambiance. "It would be similar to asking a television retailer to pay an additional content fee every time it demonstrates a television to a customer," he said. The question of how regulators will differentiate between these business models remains open. Still, the industry consensus appears settled: the UAE's music ecosystem has grown enough to warrant the infrastructure, and the commitment to funnel money back to creators has shifted what could have been seen as a burden into something closer to an investment in the future.
Notable Quotes
I have always been incredibly thankful for the work that the Performing Right Society did in collecting royalties on my behalf. Perhaps it is my time to give back in some way.— Tariq Al Nasrawi, co-founder of Peninsula Records
Music is part of Cassette's DNA, so a system that puts value back in the hands of the artists we play every day is one I'm glad to see.— Haider Madani, co-founder of Cassette music venue
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Politics & Governance