Creating intrigue around the topic of the tobacco industry in the United Arab Emirates involves highlighting its unique aspects without touching on health and ecology. The UAE’s tobacco market is a fascinating blend of tradition and innovation, where age-old practices meet cutting-edge technology. As a hub for trade and commerce, the UAE has positioned itself as a key player in the global tobacco industry, with Dubai often serving as the crossroads for tobacco trade. The market’s resilience and adaptability are evident in its ability to navigate through stringent regulations while still showing promising growth projections. The luxury tobacco segment, in particular, reflects the nation’s affinity for opulence and quality, offering premium experiences that cater to a discerning clientele. With the UAE’s strategic moves to diversify its economy, the tobacco industry’s role is both a reflection of its past and a potential indicator of its future economic direction.
Early Beginnings
The tobacco industry in the UAE has its roots in the cultural practices of the region. Traditional forms of tobacco use, such as shisha or hookah, have been prevalent for centuries .
Modern Developments
In recent years, the industry has evolved significantly, with the introduction of modern forms of tobacco products that are believed to offer a less harmful smoking experience .
Market Trends
Despite the global trend of reducing smoking, the UAE maintains strong consumer demand for tobacco products. The industry saw consistent growth in 2022, with most tobacco categories back on track after some turbulence due to the COVID-19 pandemic .
Key Players
The leading companies in the UAE tobacco market include Philip Morris International Inc., Imperial Brands Plc, British American Tobacco Plc, Japan Tobacco Inc, and Korea Tobacco & Ginseng Corporation .
Regulatory Bodies and Laws
The UAE has implemented laws and regulations to control and regulate the consumption of tobacco and tobacco-related products. The principal law governing tobacco control in the UAE is Federal Law No. 15 Regarding Tobacco Control .
Impact of Regulations on the Industry
The implementation of these regulations has had a significant impact on the industry, with the UAE government imposing an excise tax to reduce the smoking population .
Predicted Market Trends
The tobacco industry in the UAE is expected to demonstrate slow but consistent growth. The global trend for reducing smoking is likely to be delayed in the country, due to the strong smoking tradition and relatively low price sensitivity amongst smokers .
Potential Regulatory Changes
As the UAE continues to evolve its public health policies, further regulatory changes may be on the horizon. These could include stricter controls on tobacco advertising and promotion, as well as increased taxes on tobacco products .
Stricter Policies, Stronger Industry
Despite the implementation of stricter tobacco control policies, the UAE tobacco industry remains strong. This paradox can be attributed to the strong smoking tradition in the country and the relatively low price sensitivity amongst smokers .
what are the current tobacco regulations in the uae
The current tobacco regulations in the United Arab Emirates (UAE) are comprehensive and aim to control the use and distribution of tobacco products within the country. The UAE became a Party to the WHO Framework Convention on Tobacco Control in 2006. The principal law governing tobacco control is Federal Law No. 15 Regarding Tobacco Control, which includes restrictions on smoking in public places, tobacco advertising, promotion, and sponsorship, as well as health warnings on packaging and labeling .
Smoking is prohibited in certain enclosed public spaces and public transport, with some exceptions for designated smoking areas. However, healthcare, educational, and sports facilities, as well as places of worship, are not allowed to have designated smoking areas. Outdoor areas adjacent to educational, health, and sports facilities, and places of worship are also subject to smoking restrictions .
Health warnings, including text and pictorial messages, are required to cover 50% of the front and back of e-cigarette packaging. The Emirates Authority for Standardization & Metrology (ESMA) issued UAE.S 5030:2018 to regulate electronic nicotine products, which includes provisions for devices, e-liquids, disclosure requirements, and packaging .
In addition to these regulations, the UAE has implemented a Value Added Tax (VAT) of 5% on the retail price of tobacco products, as well as an ad valorem excise tax. There is no minimum specific excise tax in place, and tobacco tax revenue is not earmarked for any particular spending purposes .
Furthermore, no cigarettes are allowed to be sold, imported, or produced in the UAE unless they carry a Digital Tax Stamp. This measure is part of the UAE’s efforts to ensure compliance with tax regulations and to combat illicit trade in tobacco products .
what is the projected growth of the tobacco industry in the uae
The projected growth of the tobacco industry in the United Arab Emirates (UAE) varies by segment but generally shows a trend of growth. According to Statista, the Tobacco Products market in the UAE is expected to generate a revenue of US$2,534.0m in 2024 and is projected to grow further . Specifically, the Cigarettes market in the UAE is projected to grow by 4.83% from 2024 to 2028, resulting in a market volume of US$2.6bn in 2028 . The GCC Shisha Tobacco Market, which includes the UAE, is expected to grow at a CAGR of 6.1% and surpass revenue of US$ 1724.3 million during the forecast period from 2022 to 2032 .
ReportLinker forecasts a slight growth in tobacco sales in the UAE over the next five years, with sales expected to grow by 0.9% year-on-year, resulting in total sales of around $178.38 million by 2026 . Despite a global decline in tobacco usage, the UAE maintains strong and rising consumer demand, and consistent growth was seen within the industry in 2022, with most tobacco categories back on track for gradual growth .
These projections indicate that while the global trend is towards reducing tobacco use, the UAE market is expected to continue growing, albeit at a slow but consistent pace, influenced by factors such as strong smoking traditions and low price sensitivity among smokers in the region .
what are the most popular tobacco products in the uae
The most popular tobacco products in the United Arab Emirates (UAE) include cigarettes, midwakh (or dokha), and shisha (also known as waterpipe or hookah).
Cigarettes are a widely used tobacco product in the UAE. According to a survey conducted by Cint, various brands of cigarettes are smoked in the UAE . Philip Morris International Inc. was the leading company in the cigarettes category in the UAE in 2021 . More than half of cigarette volumes in the UAE were accounted for by Philip Morris, which has a presence with multiple brands .
Midwakh, also known as dokha, is another popular form of tobacco in the UAE. It consists of tobacco mixed with herbs and is smoked with a midwakh pipe . Among UAE National men who smoke, midwakh or dokha use (16.1%) was the most common form of tobacco followed by cigarette use (12.9%) .
Shisha, also known as waterpipe or hookah, is a common form of tobacco use in the UAE and the wider Eastern Mediterranean Region . The smoking population in the UAE is showing a strong interest in modern forms of tobacco, which are believed to offer a less harmful smoking experience .
Conclusion
The tobacco industry in the UAE is a complex and dynamic sector, shaped by historical practices, market trends, key players, and regulatory frameworks. Despite stricter control policies, the industry remains robust, demonstrating the unique challenges and opportunities that characterize the UAE tobacco market.
Statistics:
In 2021, the UAE reported $169.41 million in tobacco sales, placing it 29th in the world. This figure is expected to grow by 0.9% year-on-year, resulting in total sales of around $178.38 million by 2026 . The smoking tobacco market in the UAE is projected to grow by 5.58% from 2024 to 2028, resulting in a market volume of US$316.0m in 2028 .
FAQs:
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What is the current state of smoking tobacco and smokeless tobacco use in the UAE?
The UAE has a strong and rising consumer demand for tobacco, with consistent growth seen within the industry. The smoking population in the UAE is showing a strong interest in modern forms of tobacco, which are believed to offer a less harmful smoking experience . -
What is the role of public health in shaping tobacco control policies in the UAE?
The UAE has taken steps to reduce tobacco consumption, including ratification of the Framework Convention on Tobacco Control, with a smoking ban in public places and health warnings including text and pictorial messaging . -
What are the main challenges and opportunities for the UAE tobacco industry?
The main challenges for the UAE tobacco industry include the global trend for reducing smoking and the implementation of tobacco control policies. However, the strong smoking tradition and relatively low price sensitivity amongst smokers in the UAE present opportunities for the industry . -
How do tobacco control policies in the UAE impact the industry?
Tobacco control policies, such as smoking bans in public places and health warnings, aim to reduce tobacco consumption. However, the impact on the industry is mitigated by the strong smoking tradition and low price sensitivity amongst smokers . -
What is the paradox of tobacco control policies in the UAE?
Despite the implementation of tobacco control policies, the UAE maintains strong and rising consumer demand for tobacco . -
Can you provide an overview of the future of the UAE tobacco industry?
The tobacco industry in the UAE is expected to demonstrate slow but consistent growth. The global trend for reducing smoking is likely to be delayed in the country due to the strong smoking tradition and relatively low price sensitivity amongst smokers . -
What are the main regulatory bodies and laws governing the UAE tobacco industry?
The UAE has implemented the Framework Convention on Tobacco Control, which includes a smoking ban in public places and health warnings . -
What are the market trends for tobacco products in the UAE?
The market trends for tobacco products in the UAE include a strong interest in modern forms of tobacco, which are believed to offer a less harmful smoking experience . -
How has the tobacco industry in the UAE evolved over time?
The tobacco industry in the UAE has seen consistent growth, with a significant increase in the number of cigarette factories over the past decade . -
Who are the key players in the UAE tobacco industry?
The key players in the UAE tobacco industry include Philip Morris International Inc., Imperial Brands Plc, British American Tobacco Plc, Japan Tobacco Inc, and Korea Tobacco & Ginseng Corporation .
Books:
- “Smoke Screen: The Truth Behind the Tobacco-Industry Cover-Up”
- “The Global Tobacco Epidemic and the Law”
Sources of information:
- GlobalData https://www.globaldata.com/store/report/uae-cigarette-market-analysis/
- Euromonitor https://www.euromonitor.com/tobacco-in-the-united-arab-emirates/report
- World Health Organization (WHO) https://www.emro.who.int/images/stories/tfi/documents/gyts_cr_uae_r1_2.pdf?ua=1
- Statista https://www.statista.com/outlook/cmo/tobacco-products/united-arab-emirates
https://www.statista.com/outlook/cmo/tobacco-products/smoking-tobacco/united-arab-emirates - ReportLinker https://www.reportlinker.com/clp/country/6088/726420
- BMC Public Health https://bmcpublichealth.biomedcentral.com/articles/10.1186/s12889-020-08942-9
- The Observatory of Economic Complexity https://oec.world/profile/bilateral-product/raw-tobacco/reporter/are
- International Journal of Environmental Research and Public Health https://www.mdpi.com/1660-4601/17/7/2415
Citations:
The information provided in this article is based on authoritative sources such as GlobalData https://www.globaldata.com/store/report/uae-cigarette-market-analysis/, Euromonitor https://www.euromonitor.com/tobacco-in-the-united-arab-emirates/report, the World Health Organization (WHO) https://www.emro.who.int/images/stories/tfi/documents/gyts_cr_uae_r1_2.pdf?ua=1, Statista https://www.statista.com/outlook/cmo/tobacco-products/united-arab-emirates
https://www.statista.com/outlook/cmo/tobacco-products/smoking-tobacco/united-arab-emirates, ReportLinker https://www.reportlinker.com/clp/country/6088/726420, BMC Public Health https://bmcpublichealth.biomedcentral.com/articles/10.1186/s12889-020-08942-9, The Observatory of Economic Complexity https://oec.world/profile/bilateral-product/raw-tobacco/reporter/are, and the International Journal of Environmental Research and Public Health https://www.mdpi.com/1660-4601/17/7/2415.