Business owners across the UAE have voiced support for a newly introduced music royalty fee, saying the charge will channel much-needed funding into the country’s creative and entertainment sectors. The fee, which applies to establishments that play music for commercial purposes, is being described by industry figures as a step toward formalising how artists, composers and rights holders are compensated when their work is used in public and commercial spaces.
Retailers, restaurants, cafes, gyms and hospitality venues that use recorded or live music as part of their customer experience are among those expected to fall under the scope of the new fee structure. Business owners who have commented on the change say that while any additional operating cost draws scrutiny, the royalty fee is being viewed by many as a fair mechanism that recognises the value music brings to commercial environments, from retail outlets to fitness studios and dining establishments.
Supporting the region’s creative economy
The introduction of the fee arrives at a time when the UAE has been actively positioning itself as a regional hub for music, media and entertainment, with Dubai and Abu Dhabi hosting a growing calendar of concerts, festivals and creative industry events. Advocates of the new royalty system argue that a transparent fee structure gives musicians, producers and other rights holders a clearer path to earning income from the commercial use of their work, rather than relying solely on live performances, streaming revenue or licensing deals negotiated on an ad hoc basis.
For business owners, the shift also brings a degree of regulatory clarity. Establishments that play music commercially have not always had a standardised framework to follow when it comes to licensing obligations, and industry voices suggest that a defined fee removes ambiguity around compliance while formalising the relationship between music users and the creative community that produces the content they rely on to shape ambience and customer experience.
The move is also being framed within the broader context of the UAE’s efforts to strengthen intellectual property protections and support creative industries as part of its wider economic diversification strategy. As the country continues to expand its non-oil economy, sectors tied to media, entertainment, tourism and hospitality have taken on greater importance, and observers say measures that support artists and content creators align with that broader push.
Regional implications for the GCC
The UAE’s approach to formalising music royalty collection could also carry implications beyond its own borders, as other Gulf markets look to develop their creative and entertainment sectors. Saudi Arabia, Qatar and other GCC states have similarly been investing heavily in live entertainment, festivals and cultural programming in recent years, and a clear royalty framework in the UAE may serve as a reference point for neighbouring markets exploring similar systems.
For now, attention remains on how the fee will be implemented across different categories of businesses and how compliance will be monitored. Business owners have generally struck a constructive tone, framing the fee as a reasonable cost of supporting a creative ecosystem that contributes to the atmosphere and appeal of commercial spaces across the UAE. As the country’s entertainment and hospitality sectors continue to grow, the royalty fee is expected to remain a point of discussion among operators, industry associations and rights holders alike as the framework beds in.
