Two UAE Regulations SMEs Should Have on Their Radar

Two recent regulatory changes in the UAE could significantly affect SMEs, startups, and entrepreneurs in the country.

First, businesses that use music commercially will face a new licensing regime from December 2026.

The UAE Ministry of Economy and Tourism has launched the Collective Management in Music Guide, introducing licensing fees for establishments that play or use music as part of their commercial activities.

Under Ministerial Resolution No. 136 of 2026, the framework covers restaurants, cafés, hotels, shopping malls, fitness centers, airlines, radio and television stations, concerts, and similar events.

Fees will be collected by two Ministry-licensed organizations, the Emirates Music Rights Association and Music Nation, which manage rights on behalf of composers, songwriters, singers, instrumentalists, record producers, and music publishers.

Licenses will be valid for one year and renewable. The amount businesses pay will vary depending on factors including the nature of the music use and the size of the establishment.

Educational and academic institutions, government entities, national events, and personal, non-commercial celebrations are exempt, while the Ministry may add other categories to the exemption list.

The framework is intended to standardize music licensing across the UAE, reduce copyright violations, and ensure rights holders are compensated when their work is used commercially.

It will also channel part of the money collected back into the UAE’s music industry. 10% of total fees will go to a new Cultural Support Fund in the Field of Music, which will provide financial, technical, and artistic support for composition, production, distribution, and live performance.

The fund will also support emerging talent and initiatives aimed at taking Emirati music to international audiences through cultural exchanges, export support, and participation in global festivals.

Another piece of good news for smaller businesses is that the UAE has extended its Small Business Relief program until December 31, 2029.

Under Ministerial Decision No. 131, businesses with annual revenue of up to AED3 million (US$816,882) can continue claiming the relief for tax periods ending on or before December 31, 2029, provided they meet the applicable conditions.

The extension gives smaller companies a longer runway under a measure originally introduced as part of the UAE’s transition to federal corporate tax.

The country’s corporate tax regime took effect for financial years beginning on or after June 1, 2023, with a standard 9% rate applying to taxable income above AED375,000. Taxable income up to AED375,000 is subject to a 0% rate.

For individuals conducting business in the UAE, corporate tax generally applies only when turnover from business or business-related activities exceeds AED1 million in a calendar year.

For SMEs, the extension means eligible businesses can continue accessing Small Business Relief for another three years, providing greater certainty over their tax and compliance planning through the end of 2029.

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