UAE Introduces Annual Music Licensing Fees for Businesses from December 2026

The UAE Ministry of Economy and Tourism has introduced a new national framework governing the commercial use of copyrighted music. The Collective Management in Music Guide, adopted under Ministerial Resolution No. 136 of 2026, establishes a structured system for licensing music use, collecting royalties and distributing payments to music creators and other rights holders. Businesses covered by the framework will begin paying the applicable licensing tariffs from 1 December 2026.

The new system applies within the UAE's existing copyright and neighbouring-rights framework rather than creating a new tax or government levy.

The framework covers a broad range of commercial establishments and activities where protected music is used. These include restaurants and cafés, retail outlets and commercial complexes, shopping malls, fitness centres, hotels and floating hotels, premium airlines, radio and television broadcasters, concerts and similar events.

The applicable fee depends on the nature and scale of the music use. Different calculations apply according to factors such as seating capacity, floor area, hotel classification and room count, or annual income in the case of broadcasters.

Restaurants and cafés using music will be charged according to seating capacity. The published tariff starts at:

• AED 1,500 per year for establishments with up to 50 seats;

• AED 2,700 for 51 to 100 seats;

• AED 4,800 for 101 to 200 seats; and

• an additional AED 20 per seat above 200 seats, subject to a maximum annual fee of AED 6,000.

Restaurants and entertainment venues using DJs or similar entertainment are subject to a higher tariff. The annual fee starts at AED 2,500 and can reach a maximum of AED 8,000.

Shops and commercial complexes are charged according to floor area. Premises of up to 300 square metres are subject to an annual tariff of AED 1,700, increasing to AED 3,400 for premises between 301 and 700 square metres. Additional floor area attracts further charges, with the annual tariff capped at AED 20,000.

Large shopping malls are treated separately, with fees based on common areas and an annual ceiling of AED 50,000. The AED 50,000 figure therefore should not be interpreted as the standard annual charge for businesses. It represents the maximum tariff applying to one of the largest categories covered by the framework.

Fitness centres will pay according to their size, starting at AED 1,700 annually for premises of up to 300 square metres and subject to an annual maximum of AED 6,000.

Hotels and floating hotels are assessed according to their classification and room count. Published tariffs range from AED 50 per room for smaller one and two-star properties to higher rates for four and five-star hotels, with the largest hotel category capped at AED 25,000 annually.

Premium airlines offering in-flight entertainment are also included. Their annual tariffs range from AED 5,000 to a maximum of AED 45,000, depending on passenger-seat capacity.

Different rules apply to broadcasters. General-programming radio stations are subject to a tariff equivalent to 1% of annual income, while predominantly music-based radio services can be charged 3%. Television broadcasters are charged according to their programming category, with rates ranging from 0.25% to 1% of annual income. A minimum annual fee of AED 1,700 applies to the relevant broadcasting categories.

The Ministry has authorised two organisations to administer collective music rights in the UAE:

• Emirates Music Rights Association

• Music Nation

These organisations will manage licensing, collect payments from music users and distribute royalties to the creators and rights holders they represent. The Ministry retains supervisory authority over collective-management activities, including oversight of records, financial systems and compliance.

The approved pricing matrix cannot be changed independently by the collecting organisations without Ministry approval.

The new system operates within Federal Decree-Law No. 38 of 2021 on Copyright and Neighbouring Rights and its implementing regulations. Commercial use of recorded music can involve several different rights, including those belonging to:

• composers and songwriters;

• performers and musicians;

• sound-recording producers; and

• music publishers.

The collective-management model is intended to allow businesses to obtain the necessary rights through authorised organisations while providing a structured mechanism for royalties to reach rights holders. This means that a business having access to music through a consumer streaming service should not automatically assume that the subscription itself covers commercial public use of that music.

The Guide provides exemptions for several categories of music use. These include educational and academic institutions, government entities, use of music during national occasions and non-commercial private celebrations and events. The Ministry may also exempt additional categories through subsequent decisions.

Businesses should therefore determine whether their particular use falls within a commercial licensing category rather than assuming that all use of music is treated identically.

The framework also establishes a Cultural Support Fund for Music. The Ministry says 10% of amounts collected will be allocated to the fund. Its objectives include supporting music composition, production and distribution, live performances, emerging talent, training programmes and the international promotion of Emirati music. The fund will operate under Ministry supervision through a committee involving the Ministry of Economy and Tourism and the Ministry of Culture.

NUR Advisory Note

Businesses that play music as part of their customer experience should begin assessing the new requirements before the 1 December 2026 collection date. This is particularly relevant to restaurants, cafés, hotels, gyms, retail businesses, malls and entertainment venues.

A compliance review should establish the type of music being used, the relevant tariff category, the size or capacity of the establishment and whether the business already has any music-rights arrangements in place.

Businesses should also distinguish between a consumer music subscription and the legal right to use copyrighted music commercially in a public venue. Paying for access to a streaming platform does not necessarily provide the copyright and neighbouring-rights permissions required for commercial public use.

Multi-location operators should review each establishment individually because tariff calculations can depend on the characteristics of the particular premises.

Companies should also ensure that any payment request or licensing communication is received from an organisation authorised under the Ministry's framework.

From December 2026, music licensing should therefore be treated as part of normal operational compliance for affected businesses, alongside commercial licensing, municipality approvals, food or hospitality permits and other sector-specific requirements.