Rise of Vaping in Middle East and North Africa

According to estimates from the World Bank, tobacco consumption in the Middle East and North Africa (MENA) market has steadily declined since 2000. In 2000, 23.3% of adults used these products, dropping to 20.8% in 2010, and further down to 19.2% in 2020. Many industry experts attribute this decline to the increasing acceptance of vaping in the region.

Electronic cigarettes were banned in Qatar in 2012 and Oman three years later, but were legalized in Bahrain and Kuwait in 2016 without immediate implementation of manufacturing standards or taxation. In April 2019, the United Arab Emirates (UAE) approved standards for nicotine electronic cigarettes, becoming the first country in the region to establish product standards through the Emirates Authority for Standardization and Metrology (ESMA).

Before 2019, e-cigarettes were illegal in the United Arab Emirates. However, their unregulated use was rapidly increasing in the market. This caused concern for regulatory agencies in the UAE, who aimed to curb the use of combustible tobacco, limit the initiation of young people into smoking, and control the booming vapor market.

The goal of the UAE's e-cigarette regulations is to provide a lower-risk alternative for nicotine consumers who use combustible products. The standards established by ESMA aim to regulate all nicotine components used in electronic cigarette products, including technical specifications, ingredients, imports, packaging and labeling requirements in the UAE, as well as the corresponding financial and tax structure.

The 2021 Dubai World Vape Show (WVS) was a success as it marked the first ever e-cigarette trade exhibition in the region, leading to a significant increase in the number of UAE-based companies legally producing vape products. Representatives of WVS stated at the conference held on June 16-18, 2022 that they welcomed 50% more attendees than they did in 2021.

At a recent conference focused on Middle Eastern market growth, several speakers noted that the United Arab Emirates (UAE) and its regulatory prospects have become a blueprint for other markets in the region, including Saudi Arabia, Kuwait, Jordan, and Egypt. In 2021, Saudi Arabia announced new e-cigarette regulations similar to those of the UAE, which are also reminiscent of the tobacco product directive in Europe.

In April of this year, Relx International, a major electronic cigarette manufacturer based in China, praised the decision of the Egyptian authorities to allow legal import and commercialization of electronic cigarette products in the country. Egypt's proposed regulations on electronic cigarette products are almost identical to those proposed by the United Arab Emirates, as well as Saudi Arabia.

Rebecca Hanning, BAT's head of external affairs for the Middle East, South Asia and North Africa markets, has praised the United Arab Emirates (UAE) for being the first Middle Eastern country to regulate e-cigarettes. According to Hanning, there were approximately 15,000 e-cigarette users in the UAE in 2019, however, this number has increased to 60,000 in 2020 and is estimated to be around 70,000 today.

They have paved the way for Saudi Arabia's regulations... I believe the work that the UAE has done in this area is very important... bringing the industry together to discuss possible solutions. Haining said, "The UAE has rapidly developed a series of regulations and standards that now provide manufacturers with certainty and give consumers some assurance on the safety and quality of products." "This is very important, and I think it's a very outstanding job.

Authorities in the United Arab Emirates have lifted their ban on e-cigarette products, allowing for growth in new business and investment opportunities in the region. Experts predict that this move will support existing companies that sell such products and attract entrepreneurs. According to Arabian Business, the e-cigarette and vape market in the Middle East and North Africa is expected to grow by 9.74% annually, reaching $485 million by 2025, up from $267.9 million in 2018, the year before the ban in the UAE was imposed. In comparison, the e-cigarette market in the United States is projected to grow to $40.25 billion by 2028.

Omar Abdellatif, the general manager of Philip Morris Management Services Middle East Limited, informed attendees of the World Vape Show that there has been an increase in the number of exhibitors this year compared to 2021, indicating that new businesses are serving the UAE market. He noted that the exhibition is also an example of how it has undergone significant changes since legalization, thanks to the flourishing of innovation.

Looking at the evolution that has taken place in the UAE over the past year, he remarked, "I think the last time you were possibly sitting here (at WVS 2021) ... it was more about open and closed system refillable e-cigarettes; it was more about traditional e-cigarettes." "But you've quickly seen what's been happening. Once disposable e-cigarettes are legalized, they'll flood the market. I think that's what we're looking forward to continuing. We will start seeing these innovations.

Several studies suggest that e-cigarettes may be gradually replacing the use of water pipes. In a joint survey with the American University of Beirut, the Smoke-Free Advocacy found that an estimated 40% of young people in Lebanon are now using e-cigarette devices instead of water pipes. A speaker during the WVS also stated that the opportunity for e-cigarettes to replace cigarette use and to a smaller extent water pipes "represents a huge shift in the tobacco consumption culture of the Middle East".

Fadi Maaytah, CEO of Alternative Nicotine Delivery Solutions, spoke at the WVS and stated that innovation is necessary to continue the trend of transitioning combustible tobacco users to lower-risk alternatives in the Middle East and North Africa region. However, he emphasized that innovation should not attract new smokers but rather protect consumers who want to quit traditional tobacco by pushing high-quality products to the market.

This product is not suitable for former smokers or non-smokers. It is designed for smokers attempting to quit. There have been many innovations in the development and distribution of products hitting the market today, but the risk is attracting the wrong audience, which is something we often see," said Maaytah. "This is why more collaboration between the industry and regulatory agencies is needed to work towards moving the industry in the right direction.

Haining stated that, from a manufacturing perspective, positive industry innovation can only be achieved through product standards that all market participants comply with. She emphasized that standards are not only crucial for consumer safety and quality, but also play a key role in attracting young people to products that meet those standards.

This is part of the reason why we establish standards. From the perspective of manufacturers, it revolves around marketing freedom and marketing regulations... ensuring that all participants in the market market responsibly, rather than targeting young people, and prevent young people from accessing these products," she said. "If I were to idealize the situation from a regulatory standpoint, generally speaking, there needs to be a broader positioning between cigarettes and potentially lower-risk products in terms of regulations, standards, marketing freedom, and consumer consumption frameworks, since the risks of e-cigarettes are equivalent to combustible cigarettes.

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