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

The UAE government plans to impose music royalty fees on commercial establishments starting December 1, according to the Ministry of Economy. This move aims to foster a robust creative economy, as stated by industry figures. Various types of commercial properties, including restaurants, cafes, hotels, shopping malls, airlines, and fitness centers, fall under the new regulation.

The fees will be administered by authorized entities, Music Nation and the Emirates Music Rights Association. The cost structure is yet to be announced, but it will vary based on the business size and the type of music utilized, with live music and DJ performances being subject to higher rates. Non-commercial locations such as schools, government entities, and charity events are exempt from this requirement.

Additionally, a Cultural Support Fund for Music has been established, which will receive 10% of all collected fees to provide financial, technical, and artistic assistance to musicians at different stages of their careers. This aspect of the program has garnered positive reactions from the UAE's music community. Tariq Al Nasrawi, co-founder of Peninsula Records, expressed his gratitude for the Performing Right Society's support throughout his career and hopes to reciprocate by providing assistance to current and emerging artists.

Hakim Abderrazek, co-founder of Raw Music Store in Dubai, emphasized the importance of compensating artists for their work and believes that any initiative supporting musicians is beneficial. Haider Madani, co-founder and managing partner of the Dubai music and dining venue Cassette, acknowledged that any additional cost is a business expense but welcomed the prospect of a system that values artists.

The UAE's Minister of Economy and Tourism, Abdullah bin Touq, described the new framework as a significant step towards enhancing rights management and promoting the growth of the music sector. Despite the absence of a published fee structure four months before the deadline, business owners seem confident that the new law will not significantly alter their operations.

They are hopeful that the implementation will recognize the varying ways businesses use music and that Peninsula Records will find a way to absorb the cost, continuing to provide quality music to UAE consumers.