Two New UAE Rules Small Businesses Need to Watch
Recent changes to UAE regulations are set to impact small and medium‑sized enterprises, startups, and entrepreneurs operating in the region.
Starting in December 2026, any commercial entity that uses music as part of its operations will be subject to a fresh licensing system.
The Ministry of Economy and Tourism has issued a Collective Management in Music Guide, which outlines new fees for venues and services that play or incorporate music for profit.
According to Ministerial Resolution No. 136 of 2026, the scheme applies to restaurants, cafés, hotels, shopping centres, gyms, airlines, radio and television broadcasters, concert organisers, and comparable activities.
Two bodies authorised by the Ministry – the Emirates Music Rights Association and Music Nation – will collect the royalties on behalf of composers, lyricists, performers, record producers and publishers.
Licences will be issued for a twelve‑month period and can be renewed. The charge will be calculated based on factors such as how the music is used and the size of the premises.
Schools, universities, government bodies, national celebrations and private, non‑commercial gatherings are exempt, and the Ministry may add further categories to the exemption list.
The aim of the framework is to bring uniformity to music licensing across the UAE, curb copyright infringement, and guarantee that creators receive payment when their work is used commercially.
Ten percent of the collected fees will be allocated to a new Cultural Support Fund for Music, which will finance artistic, technical and financial projects related to composition, production, distribution and live performances.
The fund will also nurture emerging talent and back initiatives that promote Emirati music internationally through cultural exchanges, export assistance and participation in overseas festivals.
In another positive development for smaller firms, the UAE has prolonged its Small Business Relief scheme until 31 December 2029.
Under Ministerial Decision No. 131, companies with annual turnover of up to AED 3 million (approximately US$817 k) may continue to benefit from the relief for tax periods ending on or before the end of 2029, provided they satisfy the relevant criteria.
This extension gives smaller enterprises a longer horizon under a measure that was introduced as part of the UAE’s shift to a federal corporate tax system.
The corporate tax framework, which became effective for financial years starting on or after 1 June 2023, imposes a standard rate of 9 % on taxable income exceeding AED 375,000, while income up to that threshold is taxed at 0 %.
For individual entrepreneurs, corporate tax generally applies only when business‑related revenue surpasses AED 1 million in a calendar year.
For SMEs, the continued relief means eligible firms can rely on tax and compliance certainty for another three years, extending the planning window through the end of 2029.
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