UAE's music royalty fee will benefit creative community, say local business owners

The UAE government has recently announced a new requirement for commercial premises to pay annual royalties for playing copyrighted music. This move is seen as a positive step towards fostering a functional creative economy in the country. The Ministry of Economy revealed that venues such as restaurants, cafes, hotels, shopping malls, airlines, and fitness centers will be required to obtain a music license starting from December 1.

The cost of these fees will be determined by business size and the type of music used, with live music and DJ performances attracting higher rates. Thankfully, non-commercial settings like schools, government entities, and charity events will not be subject to these fees.

The announcement of this new regulation has been met with support from local business owners in the music industry. Tariq Al Nasrawi, co-founder of Peninsula Records, expressed gratitude towards the previous royalty systems that supported him throughout his career. He believes it is now his turn to give back to current and upcoming artists by ensuring they receive fair compensation for their work.

Hakim Abderrazek, co-founder of Raw Music Store, wholeheartedly agrees that artists, musicians, composers, and rights holders should be compensated for their creations. He sees the new framework as a positive development for the music ecosystem in the UAE.

Dubai's Cassette, a music and dining venue, also welcomes the new system. Co-founder Haider Madani acknowledges that while any new annual cost is a consideration for businesses, the fact that musicians will directly benefit from part of the fee makes him feel positively about it. He believes that supporting the creative community is crucial for Cassette, and this new system offers a tangible way to do so.

The UAE's Minister of Economy and Tourism, Abdullah bin Touq, sees the guide as an important step towards enhancing rights management and ensuring transparency and fairness in the distribution of music royalties, thus supporting the growth and prosperity of the music sector.

While the exact fee structure has not yet been published, business owners remain optimistic that the implementation will not drastically change their operations. Hakim Abderrazek hopes that the government will recognize the difference in how businesses use music and avoid applying the same fee to all. Tariq Al Nasrawi, co-founder of Peninsula Records, plans to absorb any potential cost increase in order to continue providing quality music to UAE residents.

The industry as a whole sees this move as a natural progression for the rapidly growing music scene in the UAE.