DUBAI (CelebrityAccess) — Universal Music Group announced that it has entered into an agreement to acquire UAE-based music company, Chabaka, part of the CHBK Group.
Chabaka, which was founded in 2013 by brothers Ala’a and Tarek Makki, provides digital distribution, marketing, publishing, and label and artist services to clients that include more than 150 independent artists and local labels in the Middle East and North Africa.
The close of the deal will provide UMG with greater access to the strategically important MENA region, which has seen a 23.8% growth in revenues from recorded music in 2022. The deal will also provide longer reach within the independent aritst and label community for UMG.
Following the acquisition, Chabaka will become part of UMG’s Virgin Music Group, and collaborate with UMG’s existing teams in the region. CEO Ala’a Makki will remain in his leadership role following the acquisition, as well other members of the Chabaka team, including the company’s A&R division. Tarek Makki will continue to advise the company but will focus on leading other businesses, UMG reported.
“These are exciting times for the region, which is one of the fastest growing music markets in the world, and we are thrilled to announce the partnership between Chabaka and UMG. Joining forces with the leading music group in the world coincides with Chabaka’s 10th anniversary and marks an important milestone and a new phase for the company, our 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,” stated Ala’a Makki.
“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,” added JT Myers, Co-CEO of Virgin Music Group. “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.”
