Universal Music Group Expands Reach in Middle East with Chabaka Acquisition

Universal Music Group (UMG) has expanded its presence in the fast-growing Middle East and North Africa (MENA) region with the acquisition of United Arab Emirates-based music company Chabaka, it was announced Wednesday (Aug. 30).

Founded in 2013 by brothers Ala’a and Tarek Makki, Chabaka provides digital distribution, marketing, publishing and label services and has deals with over 150 independent artists and labels. It is one of four companies in CHBK Group, which also includes video distributor Con Cast, creative agency Andco and Boomerang Studios. Chabaka will become part of Virgin Music Group, UMG’s independent music division that includes Virgin Music and distributor Ingrooves. Ala’a Makki will remain as CEO while Tarek Makki will take the role of advisor as he continues 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,” said Virgin Music Group co-CEO JT Myers in a statement. “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.”

“Together with UMG, we will drive the transformation of the regional music industry and take it to new places, while creating new possibilities for our existing and potential local artists,” added Ala’a Makki in a statement.

An increasingly attractive region for music mergers and acquisitions, MENA had the highest growth rate of any global region in 2021 and the third-fastest growth — 23.8% — in 2022, according to the IFPI. Last week, Reservoir Media acquired Egyptian content production and distribution company RE Media and the master and publishing rights for the catalog of Egyptian rap duo El Sawareekh. Those deals closely followed Reservoir’s announcement of a joint venture with independent Saudi Arabian hip-hop label Mashrex in July. Warner Music Group expanded its presence in the region in 2022 by acquiring distribution company Qanawat Music.