Music Licensing in the UAE: What the Franchise Sector Needs to Know

Brands and franchise operators in the UAE are preparing for new requirements covering music played to customers. According to an analysis published by law firm Bird & Bird on 21 September 2026, the UAE has introduced a new framework for the collective management of music rights, with published tariffs for commercial use taking effect on 1 December 2026. This puts music licensing on the franchise sector’s operational review agenda before the end of the year.

What has changed in music licensing?

The analysis explains that the UAE has established its first framework for the collective management of music rights, and that the Ministry of Economy has licensed two collective management organisations to administer certain music rights. Under the new framework, businesses playing music on commercial premises must ensure that their use is appropriately licensed.

The framework is relevant to customer-facing premises such as shops, restaurants, cafés and gyms. The source indicates that businesses playing copyright-protected music in public or commercial settings are likely to need a licence from one of these two organisations unless their commercial use is already licensed.

This distinction matters for the franchise sector: the issue is not to assume that every outlet lacks a licence, but to check the status of existing use and whether it is covered. Operators with existing music arrangements should therefore review their scope rather than treating their existence alone as sufficient evidence of compliance with the new requirements.

Annual tariffs based on premises type and size

The published tariffs provide greater clarity on annual fees for different categories of premises. According to the examples cited by Bird & Bird, the tariff for retail shops of up to 300 square metres is AED 1,700, rising to AED 3,400 for shops measuring between 301 and 700 square metres. Larger premises are subject to additional charges and specified caps.

For restaurants and cafés, the quoted tariff for premises with up to 50 seats is AED 1,500 a year, with higher bands based on seating capacity. Higher tariff categories also apply to restaurants and cafés offering DJ performances or live entertainment.

Shopping centres have separate tariffs based on the area of their common spaces. This is worth noting when reviewing outlets within shopping centres: the source lists separate categories for shops and common areas and does not state that a single arrangement automatically covers all music use within a centre.

These figures remain examples of tariff categories, not a substitute for identifying the category applicable to each outlet. In practice, budgets should be based on floor area, seating capacity and actual music use, rather than a single average applied across all of a brand’s outlets.

Why does the change matter to franchisors and franchisees?

For the franchise sector, the issue warrants a review at two levels: the brand’s music policy and the arrangements in place at each outlet. The analysis specifically addresses international franchisors operating in the UAE, highlighting the need to ensure that commercial music use in customer-facing premises is licensed.

From a practical compliance perspective, it is advisable to review who selects and plays the music, who holds the licensing documents, and how fees are tracked within each outlet’s budget. These are suggested steps for managing compliance, not detailed contractual obligations set out in the source, which does not specify how responsibilities are divided between franchisor and franchisee.

A network that includes both shops and cafés may also require different reviews according to each premises’ classification. The published tariffs distinguish between different activities, floor areas and seating capacities, so operators should avoid applying one outlet’s tariff across the network without checking the characteristics of the others.

Suggested steps before the tariffs take effect

Start by identifying the outlets that play music to customers and recording each shop’s floor area and each restaurant or café’s seating capacity. Note which outlets offer live entertainment or DJ performances. This information will help match actual operations to the published tariff categories and identify questions that need clarification before budgets are approved.

Next, review existing licences and arrangements to establish what they actually cover, then seek specialist clarification where rights or usage categories are unclear. The available research summary does not name the two organisations or provide application procedures or the full range of tariff bands, so these details should not be inferred from the fee examples alone.

It is also useful to assign clear responsibility within the network for collecting outlet data and documentation, while leaving contractual responsibilities subject to a separate review by the parties concerned. This will ensure that preparations for 1 December 2026 are based on information about each premises rather than general assumptions about the brand or its location within a shopping centre.

Practical takeaway: Start by mapping music use, check existing licence coverage and identify the appropriate tariff for each outlet before the implementation date. These are the franchise sector’s practical priorities when preparing for the new framework.