- Location: UAE
- Organisation: UAE Ministry of Economy and Tourism
- Status: New commercial music royalty system takes effect from December 1, 2026
- Who is affected: Restaurants, cafes, hotels, malls, fitness centres, airlines, broadcasters and other commercial users of copyrighted music
- Business impact: Annual fees will apply, with charges expected to vary according to business size and music usage
- What’s next: Fee levels and permit requirements will determine the cost for individual businesses
Businesses across the UAE that play copyrighted music commercially will need to prepare for a new annual royalty fee from December 1, 2026. The UAE Ministry of Economy and Tourism has introduced a collective music rights management framework covering commercial users such as restaurants, cafes, hotels, shopping malls, fitness centres and airlines.
The new UAE copyright music fees are intended to ensure composers, singers, songwriters, musicians, producers and music publishers receive royalties when their work is used commercially. The system will be managed by two authorised organisations, Music Nation and the Emirates Music Rights Association (EMRA).
For businesses, the change means playing music as part of the customer experience will increasingly come with formal licensing requirements.
Which UAE businesses will have to pay the new music fee?
The new system applies to commercial entities that use copyrighted music as part of their operations.
This includes:
- Restaurants and cafes
- Hotels and hospitality venues
- Shopping malls
- Fitness centres and gyms
- Airlines
- TV channels and radio stations
- Other commercial establishments that use copyrighted music
The actual cost of a permit has not yet been disclosed. According to the reported details, fees will be determined based on factors including the size of the business and how the music is used.
Businesses hosting live performances or DJ events can generally expect higher charges because the use of music goes beyond simply playing recorded tracks.
That distinction could be particularly relevant to Dubai’s hospitality and entertainment sector, where live music and DJ-led events are common.
Why is the UAE introducing music royalty fees?
The new fees are part of a wider effort to strengthen copyright protection and create a structured system for collecting and distributing music royalties.
The Ministry of Economy previously issued collective music management licences to EMRA and Music Nation. EMRA received its licence in April 2025, while Music Nation became the second authorised organisation in June 2025.
These organisations are responsible for managing rights on behalf of different groups within the music industry.
That includes composers, songwriters, singers, instrumentalists, record producers and music publishers.
Instead of individual creators having to negotiate separately with every business using their work, collective management organisations can administer these rights and distribute royalties to the relevant rights holders.
Dubai’s music and entertainment industry could feel the impact
The change is particularly relevant to Dubai, which has developed a large hospitality, tourism and entertainment economy.
The Ministry of Economy has previously highlighted the scale of the emirate’s music ecosystem. Its figures showed that Dubai had around 350 live music venues, while the UAE music-streaming market generated approximately $841.9 million in 2024.
The Ministry also projected that the UAE music-streaming market could reach around $2.3 billion by 2030.
The figures show why a formal royalty system could become increasingly important as music-related businesses and entertainment venues expand.
For hotels, restaurants and other venues, music can be an important part of the overall customer experience. The new framework gives rights holders a formal mechanism to receive compensation when their work contributes to a commercial business.
Not every event or organisation will need a paid licence
The new system is focused on commercial use, meaning not every setting where music is played will automatically be subject to the annual fee.
Non-commercial uses, including certain government entities, schools and charity events, are excluded from the paid licensing requirement under the reported framework.
This distinction is important because the purpose of the system is to regulate the commercial exploitation of copyrighted music rather than charge every organisation that plays music.
Businesses should therefore check their specific circumstances once the detailed permit and fee structure is published.
Part of the money will support musicians
The new framework also includes a direct support mechanism for the UAE’s music sector.
According to the reported details of the Ministry’s Collective Management in Music Guide, 10% of the fees collected will go towards a Cultural Support Fund for Music.
The fund is expected to provide financial, technical and artistic support to musicians at different stages of production.
This creates a link between commercial music use and investment in the wider creative economy. Musicians and other creative professionals could benefit from additional support for producing and developing their work.
The move also follows the UAE’s broader push to strengthen cultural and creative industries. Government programmes in 2026 have continued to support areas such as music, film, performing arts and other creative disciplines.
Why It Matters?
For UAE residents, the change may not mean paying a new fee personally. The direct responsibility will fall on businesses and organisations using copyrighted music commercially.
However, it could influence how venues organise entertainment and music programmes.
For businesses: They will need to understand whether their music use requires a permit and what category applies to them.
For musicians: A structured royalty system can create a clearer route for receiving payment when their work is used commercially.
For Dubai’s hospitality sector: Restaurants, hotels, clubs, malls and entertainment venues may need to factor music licensing into their operating costs.
For the creative economy: A formal rights-management system can help establish clearer rules around the commercial use of creative work.
The next important development will be the release of the actual fee structure and detailed permit requirements. Until those figures are announced, businesses cannot accurately calculate the additional annual cost.
FAQs
When will the UAE’s new music royalty fees start?
The new commercial music royalty system is scheduled to apply from December 1, 2026.
Which businesses will be affected?
Commercial users of copyrighted music, including restaurants, cafes, hotels, malls, fitness centres, airlines, TV channels and radio stations, are among those covered.
How much will the new music permit cost?
The exact fees have not yet been disclosed. Charges are expected to vary depending on factors such as business size and the way music is used.
Who will manage music rights in the UAE?
The system will be managed by authorised collective management organisations, including Music Nation and the Emirates Music Rights Association.
Will schools and charity events have to pay?
Non-commercial settings such as government entities, schools and charity events are generally excluded from the paid commercial licensing requirement under the reported framework.
What UAE businesses should watch next
The UAE’s new music royalty system marks another step towards formalising how copyrighted creative work is used commercially.
For businesses, the immediate priority is to understand the upcoming permit requirements and fee categories before the December 2026 start date. For musicians and rights holders, the system could provide a more structured way to collect royalties from commercial uses of their work.
As the UAE continues to grow its creative economy, the new framework is likely to become an important part of how music is used across the country’s hospitality, retail, tourism and entertainment sectors.
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