Music licensing in the UAE: What the new tariffs mean for hospitality, retail and leisure businesses

From 1 December 2026, businesses using music in the UAE will need to look more closely at not only whether they require a licence, but also how the applicable fee is calculated.

The Ministry of Economy and Tourism’s Guide to Collective Management in Music introduces an approved tariff structure covering a range of commercial users, including restaurants, cafés, shops, shopping centres, fitness centres, hotels, broadcasters and airlines.

The important point for businesses is that the tariff is not calculated in the same way for every sector. Depending on the activity, the assessment may be based on seating capacity, floor area, number of hotel rooms, passenger numbers or annual revenue.

For businesses operating mixed-use premises or multiple sites, that distinction can be significant.

Different businesses, different measures

The Guide links the tariff to the nature and scale of the music use.

For restaurants and cafés, the tariff is based primarily on seating capacity. Establishments using DJs or operating as entertainment clubs are placed within a separate tariff structure reflecting a more intensive use of music.

For shops and commercial complexes, the relevant measure is floor area. The Guide applies an increasing tariff as the size of the premises grows, subject to an annual collection limit.

Fitness centres and health clubs are similarly assessed by reference to their total area, with the Guide recognising the role music plays during sporting and exercise activities.

For hotels, the position is more nuanced. The hotel tariff is calculated principally by reference to the number of rooms and hotel classification. However, that does not necessarily cover every use of music within the property. Restaurants, halls, shops and entertainment facilities inside a hotel may fall within their own tariff categories.

This means that one building may contain several distinct licensing considerations.

Restaurants and cafés

For restaurants and cafés without intensive music use, the annual tariff in the Guide is:

• 1–50 seats: AED 1,500
• 51–100 seats: AED 2,700
• 101–200 seats: AED 4,800
• More than 200 seats: an additional AED 20 per seat

The Guide places an annual collection limit of AED 6,000 on this category.

Restaurants and cafés offering DJ services, entertainment clubs and similar establishments are treated separately. Their tariffs begin at AED 2,500 for premises with up to 50 seats and are subject to an annual collection limit of AED 8,000.

The distinction matters because a change in how music is used can potentially affect the applicable category even where the physical premises remain the same.

A restaurant that introduces regular DJ performances, for example, should therefore consider whether its existing licensing arrangements still reflect its operations.

Retail and commercial premises

For shops and commercial complexes, the Guide adopts an area-based approach.

Premises of up to 300 square metres are subject to an annual tariff of AED 1,700, while premises between 301 and 700 square metres are subject to AED 3,400. Additional space is then assessed according to the formula in the tariff matrix, subject to an annual cap of AED 20,000.

For retailers, this makes accurate premises information important.

Expansion, relocation or changes to the area in which music is used should therefore be considered as part of the licensing review rather than simply waiting for the next renewal.

Shopping centres

Shopping centres are treated separately from individual retail units.

The Guide provides that the tariff for shopping centres using music in public areas is calculated by reference to the total area used, including common areas.

This creates an important distinction between the responsibilities of a mall operator and those of individual tenants.

Music used in corridors, atriums or common event areas may therefore need to be considered separately from music used inside individual shops, restaurants or entertainment venues.

For landlords and mall operators, this makes it particularly important to establish clearly which party is responsible for licensing different areas of the property.

Fitness centres and health clubs

The Guide specifically recognises fitness centres and health clubs as a separate user category.

Facilities up to 300 square metres are subject to an annual tariff of AED 1,700. For larger facilities, the tariff increases by reference to additional floor area, with an annual collection limit of AED 6,000.

Because music often forms an integral part of classes and general gym operations, operators should map where music is used across the facility, including studios, exercise areas and other customer-facing spaces.

Businesses operating several branches should also consider each location rather than assuming that arrangements for one site necessarily extend across an entire group.

Hotels require particular attention

Hotels are one of the areas where the tariff framework is likely to require closer internal review.

The Guide differentiates between hotel classifications and room numbers.

For one- and two-star hotels, tariffs begin at AED 50 per room for properties with up to 50 rooms, while higher fixed amounts apply to larger properties.

Three-star hotels and four- and five-star hotels are subject to different tariff levels, with four- and five-star hotels reaching an annual collection limit of AED 25,000 under the hotel category.

But the room tariff is only part of the analysis.

The Guide expressly states that other facilities within the hotel, including restaurants, halls, shops and entertainment facilities, are subject to the tariffs applicable to their respective categories.

A full-service hotel could therefore potentially need to consider several music uses across the same property.

That is why hotel operators should avoid treating the building as one licensing unit without first examining how the individual spaces are actually being used.

Radio and television

For broadcasters, the calculation moves away from physical premises and towards revenue.

General programming radio stations are subject to a tariff of 1% of annual revenue, while music and musical channels are subject to 3%, with a minimum annual tariff of AED 1,700.

For television, general programming channels are assessed at 1% of annual revenue and news channels at 0.25%, again subject to a minimum annual tariff of AED 1,700.

For these businesses, revenue reporting and the classification of programming become central to the tariff assessment.

What about concerts and other events?

Not every type of music use fits neatly into the sector categories.

While certain activities, such as sporting events, theatre performances and cinemas, may be governed by specific contractual arrangements, the Annex confirms that the tariff framework is intended to extend to copyright-related activities generally, including musical concerts and similar events. Businesses involved in concerts, festivals or temporary events should therefore establish the applicable basis with the relevant licensed organisation rather than assuming that the tariff for their usual premises will automatically apply to an event.

The tariff should follow the actual use

One of the more important principles in the Guide is that tariffs should be linked to the actual use of musical works.

The framework also requires transparency in the basis used to determine tariffs, non-discrimination between users in identical circumstances and compliance with the collection limits approved by the Ministry.

The pricing matrix itself must be approved by the Ministry, and a collective management organisation cannot amend the approved matrix or its collection mechanisms without prior Ministry approval.

For businesses, this means that a licensing demand should be capable of being understood by reference to the applicable category, the nature of the use and the approved tariff structure.

Five questions businesses should ask

Before agreeing a tariff or renewing a music licence, businesses should be able to answer five straightforward questions:

• What music are we using?
• Where is it being used?
• Which tariff category applies to each part of the business?
• What information is being used to calculate the fee?
• Does our licence cover the actual activity taking place?

For straightforward premises, those answers may be relatively simple.

For hotels, malls, entertainment destinations, multi-site restaurant groups and other mixed-use operations, they may require a more detailed review.

Preparing for 1 December

The tariff framework takes effect from 1 December 2026.

Businesses should use the period before implementation to verify their category, review the assumptions behind the tariff calculation and check whether different parts of their premises require separate consideration.

The objective should not simply be to obtain a licence. It should be to ensure that the licence and tariff accurately reflect how music is actually being used across the business.

For organisations with multiple premises or several forms of music use, resolving that position before implementation may help reduce both licensing uncertainty and the potential for disputes later.

Is your business ready for the new music licensing rules from 1 December 2026? Contact us for guidance.

This article provides general information only and does not constitute legal advice. Businesses should obtain the current version of the applicable tariff and licensing requirements and seek advice based on their particular circumstances.

	Essa Ziad Galadari Managing Partner – Abu Dhabi, Deputy Head of Litigation, Dubai [email protected]
	Azmeena Azahar Associate [email protected]