Universal Music Group and DGMC want to build a 'Music City' in the UAE

Universal Music Group is set to open its first Capitol Studios outside of Hollywood, as well as live performance venues, music training academies and a new record label, as part of a partnership with DGMC in the growing music hub of the United Arab Emirates.

UMG and DGMC, a music organization based in the United Arab Emirates, will collaborate to build what is described as a 'Music City' that will serve as a regional hub for both local and global artists and songwriters in the fast-growing Middle East and North Africa (MENA) region. The planned studios will include all the latest equipment, including a Dolby Atmos mixing room, state-of-the-art recording equipment and rehearsal rooms for artists and writers. The company will be a joint venture between the two companies and will work to turn local artists into global stars.

“At its heart, the goal of the UMG-DGMC partnership is to support and nurture talented artists and songwriters in the region and help them reach their full creative and commercial potential,” the companies said in a joint statement Monday (Feb. 12 ).

The tie-up follows UMG's acquisition of UAE-based music label Chabaka late last summer to become part of Virgin Music Group. An increasingly attractive region for music M&A, MENA had the highest growth rate of any region in 2021 and the third fastest growth — 23.8% — in 2022, according to the IFPI.

“We have long recognized the potential in the Middle East and are incredibly proud to work with world-class partners like DGMC,” he said. Adam Granitis, Executive vp of market development for UMG. “We share their enthusiasm and vision to harness this potential and nurture the next generation of recording artists and songwriters. Our partnership will create a strong platform for the incredible talent in the region and accelerate their careers at home and abroad.”