Deal will drive ‘transformation of the regional music industry,’ Chabaka CEO says Company will become part of UMG’s Virgin Music Group LONDON: Universal Music Group has announced its acquisition of UAE-based Chabaka Music in a move that sees the Dutch-American company expanding its presence in the Middle East and North Africa region. “The MENA region is one of the fastest growing music markets in the world, representing untapped potential and opportunity,” said Patrick Boulos, UMG’s CEO for the region. “Chabaka is a unique collection of visionary leaders, artists and labels, and gives us both scale and opportunity, especially when combined with UMG’s world-leading global platform.” Founded in 2013 by brothers Ala’a and Tarek Makki, Chabaka specializes in digital distribution, marketing, publishing and artist services, with a focus on independent artists and labels. It is one of four companies in CHBK Group, alongside video distributor Con Cast, creative agency Andco and Boomerang Studios. The group represents more than 150 artists and labels, with a strong regional catalog and presence across the Gulf region, Levant, Egypt and North Africa. “This acquisition brings together UMG’s global reach and expertise with Chabaka’s deep local relationships and repertoire,” said Chabaka CEO Ala’a Makki. “Together, we will drive the transformation of the regional music industry and create new opportunities for local artists.” Under the deal, Chabaka will become part of UMG’s Virgin Music Group, which includes Virgin Music and distributor Ingrooves. Makki will stay on as CEO, while his brother will become an adviser to Chabaka and continue to lead the other companies in the CHBK Group. “As we continue to expand our footprint in emerging territories all over the world, Chabaka represents an important creative hub in one of the world’s most promising music markets,” J.T. Myers, co-CEO of Virgin Music Group, said. “Ala’a Makki and his team bring a level of expertise and knowledge that will enable them to create opportunities for our artists and labels in the expanding MENA region and in turn we will be able to grow the global audience for Chabaka’s amazing roster of artists and labels.” The music market in MENA has grown rapidly in recent years. In 2021, it recorded the world’s fastest revenue growth at 34 percent and ranked third in 2022 at 23.8 percent, according to the International Federation of the Phonographic Industry. That growth has led to a number of acquisitions and strategic investments in the region. In August, SRMG Ventures announced a $5 million strategic investment in Anghami, the leading music and entertainment streaming platform in the MENA region. Earlier in the year, Reservoir Media acquired Egyptian content production and distribution company RE Media and formed a joint venture with independent Saudi Arabian hip-hop label Mashrex.