UAE formalises music licensing and royalties regime

The Collective Management in Music Guide was outlined by the UAE Ministry of Economy and Tourism (the Ministry) earlier this month. It authorises the Emirates Music Rights Association (EMRA) and Music Nation to collect fees and distribute royalties to copyright holders in relation to the commercial use of their music.

When the new regime begins to operate, businesses that use music commercially will need to hold licenses and pay fees. The framework introduces sector-specific fee schedules, including fees based on venue size, hotel room count, broadcaster revenue, and airline passenger capacity. Some limited exceptions apply, including for education institutions.

The Ministry has oversight powers, including inspections, review of records, complaint handling, and regulatory enforcement.

According to Alexandra Bertz of Pinsent Masons in Dubai, the purpose of the new regime is to regulate the local music market and raise awareness of the framework for protecting the rights of authors, creators and music production companies, composers and songwriters, singers and musicians, sound recording producers, and music publishers. She said the Collective Management in Music Guide is the culmination of an evolving policy position on collective licensing over the past decade and operationalises provisions contained in UAE copyright law (Federal Decree-Law No. 38 of 2021), by establishing authorised collecting organisations, licence requirements and structured royalty collection mechanisms for commercial users of music.

For businesses, Bertz said, the new regime means use of music will become a licensing and compliance issue rather than merely an operational consideration. They encouraged businesses to check whether they fall within the scope of the new regime and ensure they are compliant with the framework regulations, before fees take effect in December.

Bertz said: “For businesses in the applicable sectors, this framework introduces new compliance and, potentially, financial obligations. It also provides greater clarity around the lawful use of music, creates a standardised licensing framework and supports compensation for creators and rights holders. Organisations that use music as part of their customer experience, entertainment offering or brand strategy should evaluate their exposure, understand the applicable fee structures and prepare for implementation ahead of December 2026.”

Bertz added that other actions businesses can take to prepare for the new regime include: determining the applicable fee category and likely annual licensing cost they will face; reviewing existing music licensing arrangements and supplier contracts; budgeting for licensing fees ahead of the December implementation date; establishing processes to maintain compliance and demonstrate lawful music use; and monitoring for further guidance from the Ministry, EMRA, and Music Nation.