Record companies and artists are losing millions of dollars in the region every year because local broadcasters do not pay for the music they use on air, prompting renewed calls for the UAE Government to approve a nationwide system for collecting royalties. The vast majority of organisations that broadcast copyrighted material - including radio and TV stations, and also public venues such as hotels and retail outlets - are in breach of copyright law, say industry executives.
And while some individual companies have taken steps to pay royalties, broadcasters say that such payments can be made only when the Ministry of Economy approves a so-called rights collection society. Hussain Spek Yoosuf, the managing director of Fairwood Music Arabia, which represents the publishing rights of Universal Music Publishing and EMI Music Publishing in the UAE, says rights owners are losing "tens of millions" in the MENA region. By comparison, music royalty collections in the UK amounted to £623 million (Dh3.28 billion) last year.
"In aggregate - over TV, radio, retail outlets and hotels - the [losses] amount to millions of dollars per year in the UAE. It's tens of millions in the wider region," said Mr Yoosuf. Mark Hill, the managing partner at The Rights Lawyers, a Dubai-based law firm specialising in media and intellectual property, said the "vast majority" of UAE broadcasters "are using copyrighted material without the permission of the rights owners".
"If you were operating a radio or TV station anywhere else in the world, you'd have to pay these fees," said Mr Hill, whose practice represents the intellectual property interests of EMI Music Arabia, Warner Music, Sony-BMG Entertainment and Universal Music in the Gulf. Under the UAE's copyright law of 2002, copyright infringement is punishable by a minimum fine of Dh10,000 (US$2,720) and two months in prison. However, this law has not been enforced for breaches of copyright by TV and radio stations.
The Ministry of Economy is considering the approval of a royalties collection, or collective administration, system, which must receive special government permission because it is deemed a "restricted" business. "At a federal regulatory level, we're still waiting. We need the last nod from the Ministry [of Economy]," Mr Hill said. Mr Yoosuf said there were "positive signs" the government could approve the formation of such a system, adding that the ministry's proposal to set up a copyright management centre to protect the interests of book publishers was a step in the right direction.
"It's a different issue, but a cousin of what we're trying to do," he said. The Ministry of Economy could not be reached for comment. Other industry executives said the lack of regulation on royalty payments was hurting artists. "Across the Arab world, the copyright protection for creative productions is not enforced. The biggest case in point is the legacy of big stars such as Fairuz, Umm Kulthum and Abdel Halim Hafez. The whole Arab pop culture has been built around them, but the remuneration is not there," said Ali Jaber, the dean of the Mohammed Bin Rashid School of Communications at the American University of Dubai, and a consultant to the TV and publishing group Dubai Media Incorporated.
"The music industry has limited growth due to the lack of regulation," said Mr Jaber, adding that the situation in the UAE was better than in many other parts of the Arab world. Some UAE broadcasters have individual agreements with copyright holders, through which they pay royalty fees. Emarat FM, which is part of the Abu Dhabi Media Company (ADMC), the owner and publisher of The National, has had a deal in place with Rotana, the world's largest producer of Arabic music, for some years.
ADMC is also in the process of signing a deal for the rights to play Rotana-owned music on its Star FM station, said Abdulrahman Awadh, the director of ADMC's Abu Dhabi Radio Network. "We are ready to pay anyone; we want to pay royalties for every song we play," said Mr Awadh. Other broadcasters say it is impossible to make royalty payments because there is no collection system in place. "The region is still evolving. It's advanced, but there is still room for improvement in terms of royalties and regulation. Royalties are part of our agenda … But I really don't think the market is ready, in terms of its maturity," said Mohammed Almulla, the chief executive of the Arab Media Group, which operates seven radio stations from its Dubai base.
The Arab Media Group does "not [pay] direct royalty payments", but has other agreements in place with record companies, Mr Almulla said. "There is a law about [use of copyrighted material] … But the collection mechanism has not been put in place. So we work with record companies hand in hand. We need each other for cross-promotion. It's a business relationship that works for the moment, but that may change in the future," said Mr Almulla.
Russell Woolford, the general counsel for Arvato Mobile, which provides a range a digital entertainment content and manages royalty payments, said the lack of a collection system did not necessarily mean that all local broadcasters were in breach of the law. "While it may be the case that some or all of the radio stations do not pay royalties for the music they play, often because there is no collection society yet established here, one cannot assume that radio stations are breaking the copyright law, as they may have the consent of the copyright owners. This could be through a licence obtained here or in another territory, as many of the commercial stations have parent companies around the world," said Mr Woolford.
bflanagan@thenational.ae
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
PRISCILLA
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Ms Yang's top tips for parents new to the UAE
- Join parent networks
- Look beyond school fees
- Keep an open mind
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
MATCH INFO
Europa League final
Who: Marseille v Atletico Madrid
Where: Parc OL, Lyon, France
When: Wednesday, 10.45pm kick off (UAE)
TV: BeIN Sports
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
Killing of Qassem Suleimani
The Bio
Hometown: Bogota, Colombia
Favourite place to relax in UAE: the desert around Al Mleiha in Sharjah or the eastern mangroves in Abu Dhabi
The one book everyone should read: 100 Years of Solitude by Gabriel Garcia Marquez. It will make your mind fly
Favourite documentary: Chasing Coral by Jeff Orlowski. It's a good reality check about one of the most valued ecosystems for humanity
Nepotism is the name of the game
Salman Khan’s father, Salim Khan, is one of Bollywood’s most legendary screenwriters. Through his partnership with co-writer Javed Akhtar, Salim is credited with having paved the path for the Indian film industry’s blockbuster format in the 1970s. Something his son now rules the roost of. More importantly, the Salim-Javed duo also created the persona of the “angry young man” for Bollywood megastar Amitabh Bachchan in the 1970s, reflecting the angst of the average Indian. In choosing to be the ordinary man’s “hero” as opposed to a thespian in new Bollywood, Salman Khan remains tightly linked to his father’s oeuvre. Thanks dad.
The specs
Engine: 4.0-litre flat-six
Torque: 450Nm at 6,100rpm
Transmission: 7-speed PDK auto or 6-speed manual
Fuel economy, combined: 13.8L/100km
On sale: Available to order now
MATCH INFO
Sheffield United 2 Bournemouth 1
United: Sharp (45 2'), Lundstram (84')
Bournemouth: C Wilson (13')
Man of the Match: Jack O’Connell (Sheffield United)
The specs
Engine: Four electric motors, one at each wheel
Power: 579hp
Torque: 859Nm
Transmission: Single-speed automatic
Price: From Dh825,900
On sale: Now
Farasan Boat: 128km Away from Anchorage
Director: Mowaffaq Alobaid
Stars: Abdulaziz Almadhi, Mohammed Al Akkasi, Ali Al Suhaibani
Rating: 4/5
Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
More on animal trafficking
The specs
Engine: 6.2-litre V8
Transmission: ten-speed
Power: 420bhp
Torque: 624Nm
Price: Dh325,125
On sale: Now
Batti Gul Meter Chalu
Producers: KRTI Productions, T-Series
Director: Sree Narayan Singh
Cast: Shahid Kapoor, Shraddha Kapoor, Divyenndu Sharma, Yami Gautam
Rating: 2/5
Company profile
Company name: Suraasa
Started: 2018
Founders: Rishabh Khanna, Ankit Khanna and Sahil Makker
Based: India, UAE and the UK
Industry: EdTech
Initial investment: More than $200,000 in seed funding
The rules on fostering in the UAE
A foster couple or family must:
- be Muslim, Emirati and be residing in the UAE
- not be younger than 25 years old
- not have been convicted of offences or crimes involving moral turpitude
- be free of infectious diseases or psychological and mental disorders
- have the ability to support its members and the foster child financially
- undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
- A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
Start-up hopes to end Japan's love affair with cash
Across most of Asia, people pay for taxi rides, restaurant meals and merchandise with smartphone-readable barcodes — except in Japan, where cash still rules. Now, as the country’s biggest web companies race to dominate the payments market, one Tokyo-based startup says it has a fighting chance to win with its QR app.
Origami had a head start when it introduced a QR-code payment service in late 2015 and has since signed up fast-food chain KFC, Tokyo’s largest cab company Nihon Kotsu and convenience store operator Lawson. The company raised $66 million in September to expand nationwide and plans to more than double its staff of about 100 employees, says founder Yoshiki Yasui.
Origami is betting that stores, which until now relied on direct mail and email newsletters, will pay for the ability to reach customers on their smartphones. For example, a hair salon using Origami’s payment app would be able to send a message to past customers with a coupon for their next haircut.
Quick Response codes, the dotted squares that can be read by smartphone cameras, were invented in the 1990s by a unit of Toyota Motor to track automotive parts. But when the Japanese pioneered digital payments almost two decades ago with contactless cards for train fares, they chose the so-called near-field communications technology. The high cost of rolling out NFC payments, convenient ATMs and a culture where lost wallets are often returned have all been cited as reasons why cash remains king in the archipelago. In China, however, QR codes dominate.
Cashless payments, which includes credit cards, accounted for just 20 per cent of total consumer spending in Japan during 2016, compared with 60 per cent in China and 89 per cent in South Korea, according to a report by the Bank of Japan.
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WRESTLING HIGHLIGHTS
The specs
The specs: 2019 Audi Q8
Price, base: Dh315,000
Engine: 3.0-litre turbocharged V6
Gearbox: Eight-speed automatic
Power: 340hp @ 3,500rpm
Torque: 500Nm @ 2,250rpm
Fuel economy, combined: 6.7L / 100km
Kandahar%20
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