If your business plays music, whether it’s a playlist in a café, background music in a retail store, a DJ in a restaurant, or music in a hotel lobby, a major change is on the horizon.

From 1 December 2026, businesses across the UAE that use copyrighted music commercially may be required to obtain a licence and pay annual music licensing fees under the UAE’s new collective management framework. The new regime introduces fees ranging from approximately AED 1,500 to AED 50,000 per year, depending on the type and size of the business.

This is one of the most significant developments in the UAE’s copyright landscape in recent years and is expected to have a direct impact on businesses operating across the hospitality, retail, leisure and entertainment sectors. 

  • First things first: does this apply to you?

    Ask yourself:

    • Do customers hear music on your premises?
    • Do you play background music in a restaurant, café, gym, spa, shop or office?
    • Do you host DJs, live performers or events?
    • Do you operate a hotel, retail outlet or entertainment venue?

    If the answer is “yes” to any of the above, there is a strong possibility your business will need to consider the new licensing requirements. 

  • What’s actually changing?

    The UAE Ministry of Economy and Tourism has introduced a new framework regulating the commercial use of music. Under the new system, licensed collective management organisations (“CMOs”) will administer music licences, collect royalties and distribute payments to rights holders including composers, songwriters, performers, producers and publishers. The two organisations currently licensed by the Ministry are:

    • Emirates Music Rights Association (EMRA); and
    • Music Nation. 

    Put simply, if your business uses copyrighted music commercially, you may now need a licence and may be required to pay royalties. Licences will generally be issued on an annual basis and renewed periodically. 

  • What will it cost?

    The tariff varies depending on business type and size.

    Indicative annual fees

    • Restaurant/ café (up to 50 seats) = AED 1,500
    • Restaurant/ café (51-100 seats) = AED 2,700
    • Restaurant/ café (101-200 seats) = AED 4,800
    • Restaurants with DJs/ entertainment = AED 2,500 - AED 8,000
    • Retail stores = From AED 1,700
    • Fitness centres = From AED 1,700
    • Hotels = Based on room numbers and star rating
    • Shopping malls = Up to AED 50,000
    • Broadcasters = Percentage of annual revenue

    The applicable tariff will depend on the specific business category and size. 

  • Why is this a positive development?

    Whilst many businesses will understandably focus on the new cost and compliance burden, the broader policy objective is an important one.

    Historically, there has been no comprehensive mechanism in the UAE for ensuring that composers, artists, performers and publishers are paid when their music is used commercially. The new framework introduces a structured royalty collection and distribution system that aligns the UAE more closely with international best practice. 

    The benefits are significant:

    • stronger copyright protection
    • fairer compensation for creators and rights holders
    • greater transparency in royalty collection
    • increased investment confidence in the music and creative sectors
    • continued growth of the UAE's creative economy. 

    For creators, this means greater protection of their intellectual property. For businesses, it creates a clearer and more reliable framework for using music legally.

    Four steps to compliance

  1. Step 1: Conduct a music audit

    Identify every way music is used within your business:

    • Background music
    • TVs and screens
    • Streaming services
    •  DJs
    • Live performers
    • Events and promotions
  2. Step 2: Determine responsibility

    Who is responsible for obtaining the licence?

    • The venue owner?
    • The operator?
    • The franchisee?
    • The event organiser?

    This is particularly important for hotels, retail groups, franchised businesses and event operators.

  3. Step 3: Obtain the appropriate licence

    Businesses will generally need to obtain licences through the authorised CMOs. Music Nation has indicated that businesses will be able to obtain licences and pay fees through its platform, whilst both Music Nation and EMRA have been licensed to administer rights and collect royalties under the new framework. 

  4. Step 4: Maintain records

    Keep records of licences obtained, renewal dates, music supplier contracts; DJ and entertainment agreements and compliance policies.

What happens if a business does nothing?

At present, many of the practical enforcement details are still emerging, however, businesses should not assume that existing Spotify, Apple Music or other streaming subscriptions will satisfy the new licensing requirements. Consumer streaming subscriptions generally provide rights for personal use rather than public commercial use. 

Failure to obtain the appropriate licence could expose businesses to:

  • copyright infringement claims;
  • royalty payment disputes;
  • regulatory scrutiny;
  • reputational risks; and
  • potential enforcement action once the framework becomes fully operational.

The precise enforcement approach remains to be seen, but businesses would be well advised to address compliance proactively rather than waiting until December. The Ministry has indicated that it will oversee the operation of the new system and monitor licensed organisations. 

How we can help

The new regime raises a number of commercial and legal questions:

  • Does my business require a licence?
  • Which entity should obtain it?
  • Are existing agreements with DJs, entertainment providers and music vendors compliant?
  • Who bears responsibility in a franchise or management arrangement?
  • What internal processes should be implemented?

The bottom line

The UAE’s new music licensing framework is not just another regulatory change, it represents a major step forward in recognising and protecting the value of creative works, ensuring that artists, composers, performers and publishers are fairly rewarded when their music is used commercially. At the same time, it provides businesses with a clearer pathway to lawful music use.

If music forms part of your customer experience, now is the time to review your position, understand your licensing obligations and prepare for the new regime before it takes effect on 1 December 2026.

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