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United Arab Emirates 1 COUNTRY PROFILE MARKET PROFILE 08.11.19 United Arab Emirates UAE STATS f Population 9.7m* If an international or Arabic d artist is coming to town, we GDP (purchasing power parity) see that [their streams start] $696bn* booming. The live market was the GDP real growth rate 0.8%* music industry for a long time...” GDP per capita (PPP) $68,600* – Claudius Boller, Spotify h “If you look at Spotify, when they entered Internet users 5.3m this market, there was immediately a Percent of population 90.6%* conversion of people who moved from c whatever international account they As the business hub of the Middle East and North Africa, the UAE belies were using,” said Hussain “Spek” Yoosuf, Broadband connections 1.3m its geographical size. In the case of the music industry, global streaming the founder of Abu Dhabi-based music Broadband subscriptions services have joined record companies in mining its significant potential publishing company PopArabia. “Spotify per 100 inhabitants 21 were able to hit more people right away. he UAE is among the smallest entire MENA region is done out of here,” i That might not have been the case in Yemen countries in the Middle East and said Claudius Boller, the MD for the Middle or even Egypt to some extent. In the Gulf, Total mobile phone North Africa (MENA) but it’s East and Africa at Spotify. “You have lots you’ve got a majority of the population under among the most significant for the of economies of scale when it comes to subscriptions 19.8m 40, some of the highest smartphone and musicT industry. Not only is it the business agencies and working with brands. You Sources: CIA World Factbook / *2017/18 estimates social media penetration in the world and hub of the region – the combination of a cover a whole region in an instant.” [relatively] no taxes,” says Yoosuf. “This business-friendly environment, politically Another distinguishing characteristic seems like the perfect storm to me.” stable government and state-of-the-art of the UAE is this: its large number of countries in MENA) over the past year: In the Gulf, the UAE in particular infrastructure have made it the preferred expatriates, which account for around Deezer arrived in October 2018; Spotify punches above its weight. “From a market base for record companies, media and 88% of the population and represent 200 launched last November; and YouTube size [perspective], the UAE is not the advertising agencies – it’s also home nationalities, including many from Western Music made its debut this September. largest,” said Eddy Maroun, co-founder of to some of the world’s highest rates of countries. “It’s a little bit of a snapshot of the They join the incumbents: local platform Anghami, which claims over 75% of the disposable income, credit card penetration world,” said Boller. Anghami, which has been around since audio streaming market in MENA, with 20m report and internet access. These expats form a ready market for 2012; and Apple Music, which followed “active users” and an annual growth rate “Most labels are here, the live scene is global streaming services, with three of in 2015. Each has a base in the UAE’s “of 35-40%”. “Saudi is the biggest in GCC big, the majority of media bookings for the them having launched here (and in other commercial capital of Dubai. [Gulf Cooperation Council], but the UAE is the ISSUE 358 2 COUNTRY PROFILE MARKET PROFILE 08.11.19 United Arab Emirates continued... important from a revenue and positioning perspective.” MOST STREAMED SONGS MOST STREAMED SONGS MOST STREAMED SONGS Streaming platforms enjoy higher conversion rates in the UAE where a monthly Anghami (Jan-Sept 2019) Deezer (Oct 2018-Oct 2019) Spotify (Summer 2019) premium subscription is priced at AED19.99 (approximately $5.50) on Apple Music, Taki Taki Shawn Mendes, Camila Cabello Spotify and YouTube Music, which is higher Senorita Shawn Mendes, Camila Cabello Senorita DJ Snake, Selena Gomez, Ozuna, Cardi B than in India but about half what it costs in Howeh El Hob Adham Nabulsi Old Town Road Lil Nas X, Billy Ray Cyrus the US. For Spotify, the UAE is “leading on Happier Marshmello, Bastille the conversion rate”, said Boller, while for Ya Betfaker Ya Bet7es Sherine I Don’t Care Ed Sheeran, Justin Bieber Anghami the country’s proportion of paid Without Me Halsey subscribers is above average at 20%. 7 Rings Ariana Grande Bad Guy Billie Eilish Across all services (see right for lists Sunflower Post Malone, Swae Lee Lil Tecca of the most popular playlists and songs), Without Me Halsey Ransom Thank U, Next Ariana Grande the UAE over-indexes on the consumption of international music. “The nature of the population is reflected in the music TOP PLAYLISTS TOP PLAYLISTS TOP PLAYLISTS consumed,” said Maroun. “It’s very eclectic and very diverse. If you look at the [larger] Anghami (Jan-Sept 2019) Deezer (Oct 2018-Oct 2019) Spotify (Q1 2019) region, Arabic is bigger.” It’s not just English music but other kinds of international repertoire that find Today’s New Releases (Arabic) Top United Arab Emirates (English) Today’s Top Hits (English) traction on streaming platforms in the Mornings With Fayrouz (Arabic)i Hits Of The Moment (English) Top Hits Philippines (Filipino) UAE. “Bollywood and Pinoy pop are more popular here,” said Maroun. The second- Top Pop (International) Acoustic Pop (English) Sleep (Instrumental) most-streamed playlist on Spotify during Q1 2019 was Top Hits Philippines and fans of Essential Pop (International) Today’s Best Pop (English) RapCaviar (English) Filipino pop spend an average of one hour listening to the OPM Favourites playlist on New Dance (International) Rap Bangers (English) Soft Pop Hits (English) the platform every day. Similarly, on YouTube, users in the UAE stream “music from India, EDM and K-pop Arabic artists Hussain Al Jassmi and Rashed in the Gulf. They found that streams for be where most Arabic music is being in addition to Arabic pop”, said Liliana Al-Majed. the local style of music known as Khaleeji streamed – something Maroun attributes Abudalo, YouTube’s manager of music Boller said he was also surprised to find “picked up strongly when we launched our to the inherent advantage local services content partnerships for the Middle East & that “K-pop is a big, big genre that’s growing PlayStation partnership”. have in emerging markets. “I think the North Africa. “It’s very different compared super-fast and booming in the UAE” which, “The gaming community is customising global services are more attractive for to other markets in the Arab world.” The along with Saudi Arabia and Morocco, their experience [through music],” he said. expats,” he said. “If you look at the global report most-played acts on the platform in the makes up the top three markets for the “You can imagine that the listening time landscape, in emerging markets, the locals country include Camila Cabello, Ed Sheeran, genre in MENA. Another big learning for across that audience is huge.” are predominantly winning: [so look at] Bollywood playback singer Arijit Singh and Spotify is the immense popularity of gaming On the whole, Anghami appears to China, India, Russia or the Middle East. the ISSUE 358 3 COUNTRY PROFILE MARKET PROFILE 08.11.19 United Arab Emirates continued... There’s a reason. They don’t have the world the competition by windowing releases tend to stick to mainstream international soul singers Abri and Khalifa Nasser, took to conquer. They just have those markets on their platforms and showcasing Arabic pop, pushing audiences interested in other the stage last month at a concert in Dubai to crack. They know their culture and their talent. Like, for instance, through Anghami’s genres or locally produced independent that was headlined by Mariah Carey and users and have enough data to know what self-produced series of Anghami Originals music in the direction of streaming services. organised to mark one year until Expo 2020. works best.” releases, which they launched about a year “We see a lot of people come from radio This will bring more attention to the UAE Anghami has introduced such market- ago. “We use it to support talent – certain where the top global hits are being played and is expected to include a number of specific initiatives as “a filter for Ramadan artists we believe have potential that needs up and down,” said Spotify’s Boller. “We feel music-related events and activities. “Next content” for those who don’t want to listen to be explored better,” said Maroun. “It’s a users want to go a bit more in-depth.” year is going to be a turning point for the to music during the holy month and offering way for us to add value and it’s working. Listeners are also drawn to streaming country because Expo 2020 will put a lot of a range of payment methods including pre- Some become big hits. An Anghami Original, platforms when an international act eyes on the market,” said Yoosuf. paid cards because “even in a developed ‘Ser Alhayah’ by Iraqi singer Aseel Hameem, performs in the country. “If an international While the UAE will perhaps always be country like UAE, people prefer to pay is among the top Arabic songs of 2019.” or Arabic artist is coming to town, we see seen within the context of the larger Gulf or through telcos or Paypal”. Maroun said Anghami is not trying to be a that [their streams start] booming,” said MENA area, it is, as Boller calls it, “a pulse Both Anghami and Spotify downplayed record company.
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