Leading record labels in the UAE will come together to form an industry grouping, which will work to ensure that minimum standards are maintained. A task force has been set up to draw up a plan to establish the grouping.

This was decided at a meeting called by London-based International Federation for the Phonographic Industry (IFPI), which presented a proposal to major players yesterday in Dubai.

Such a country-specific grouping has already been set up in Saudi Arabia and was given official recognition last year.

"We have placed the proposal to all the major UAE-based record labels, including representatives of the international names. It is now for the companies concerned to accept the suggestion and create a grouping for the UAE," said Shuckri Bundakji, president of BMG Entertainment for the Middle East and Africa. He is also a IFPI committee member responsible for the region.

"The process will may take time, but such a grouping will create common standards, help counter piracy and promote national talent in the music business." There are about 20 labels operating in the UAE market.

According to estimates, the Middle East's music business is valued at between $200-225 million. The UAE would account for somewhere about $20-25 million. But piracy rates hover between the 25-50 per cent mark in key markets such as Saudi Arabia, Kuwait, Lebanon and Egypt, according to IFPI findings.

UAE has been an honourable exception with piracy rates of well below 10 per cent. Piracy in Bahrain, Oman and Qatar would account for 10-25 per cent.

"The UAE is a model for what can be achieved. The authorities have been extremely supportive and it has been a continuous effort to rid the piracy operators," said Bundakji.

"Saudi Arabia is still struggling to cope with it - creating an industry grouping by itself cannot solve the problem. It needs the active involvement of the governments."

The move to create an industry grouping has received fresh impetus with the entry of mega retailers such as Virgin and Tower Records into the region. Their entry has increased the market size and also increased the diversity of the music business.