UAE's Strict E-cigarette Regulations and Taxation

According to data from the World Tobacco Harm Reduction Center, the adult smoking rate in the United Arab Emirates (UAE) is projected to be 14.7% in 2022, which is a significant drop from 29% in 2015. This decrease has been attributed to the country's strict anti-smoking measures and relatively relaxed regulation of e-cigarettes. Over the course of seven years, the UAE has witnessed a more than 50% reduction in smoking rates.

As a signatory of the Framework Convention on Tobacco Control of the World Health Organization, the United Arab Emirates has had fairly comprehensive laws and regulations pertaining to smoking, including but not limited to prohibiting smoking in public places, prohibiting minors from smoking, and establishing packaging requirements for cigarette products. Enforcement has also been increasing year by year, and violators may face imprisonment for violating smoking regulations. However, in 2019, the Emirates Authority for Standardization and Metrology (ESMA) legalized the sale of electronic cigarettes (including electronic vapor products and heated tobacco products) in order to curb the rebound of smoking rates. ESMA has also established regulations and standards for the retail and wholesale of electronic cigarettes under the "Regulation for Electronic Nicotine Products (Alternative to Traditional Tobacco Products)," and calls on all practitioners to abide by them.

The main contents of the standard are as follows:

Electronic vapor products and heated tobacco products are being brought under the same regulatory umbrella. Restrictions on electronic cigarette flavors will follow the guidelines laid out in another UAE government document, "GOS UAE.S 707: Allowable Additives in Food." However, this document does not include requirements for flavor additives in flavored electronic cigarette products, such as e-liquids and pods. Therefore, it can be assumed that the UAE does not impose flavor restrictions on such products. This is confirmed by the wide selection of e-liquid flavors shown on the website of an online electronic cigarette retailer based in the UAE, as seen in the image below.

Photo credit: https://vayyip.net/collections/ejuice

Other product components, such as filters, packaging paper, wraps, pod casings, or any other related ingredients, must not contain fragrances that alter the product's scent or taste or affect its emission intensity, nor may they include tobacco, tobacco extracts, or nicotine. The following materials may not be added to the product, pod, or e-liquid: vitamins or other additives that give the impression of health benefits or reduce health risks.

Caffeine, taurine, or other additives and stimulants that are associated with enhanced performance and energy levels.

Color additives that can make smoke appear in a variety of hues.

Products that cause cancer, genetic mutations, or toxin production.

Substances that are banned by law, such as narcotics, hallucinogens, and sedatives.

Ethylene glycol, diethylene glycol, and formaldehyde.

Formaldehyde, acrolein, crotonaldehyde, acetone.

Acetone, diacetyl, 3,2-pentanedione and related ketones, and long-chained preservatives for hydroxybenzoic acid.

Acrylonitrile, benzene, 3,1-butadiene, isoprene, and toluene.

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Ammonia.

Cinnamon compounds;

Respiratory allergens;

Residual heavy metals such as lead, cadmium, mercury, chromium, nickel, and iron.

Chromium, nickel, iron, arsenic, and tin;

Multipolar hydrocarbons, carbon monoxide, and tobacco-derived nitrosamines such as NNN.

Nitrosamines in tobacco, such as NNK and NNN.

Mineral oil, vegetable oil, and fats such as olive oil.

The capacity of the pod inside the smoking device cannot exceed 10 milliliters, while the capacity for refill liquid cannot exceed 50 milliliters (in Saudi Arabia, the limits are 2 milliliters and 10 milliliters, respectively). The maximum concentration of nicotine in the e-liquid is 20 milligrams per milliliter. Any labels, descriptive information, names, shapes or symbols used on or in the packaging of the product or its accessories must not result in any misrepresentation, deception, or impression that is false or misleading. This includes claims that the product is less harmful than any other type of product, reduces the risks associated with smoking-related diseases, such as low tar or tar-free and/or nicotine-free, mild, very mild, moderate, natural, organic, additive-free, fragrance-free or with limited fragrance, or that it has economic advantages compared with traditional cigarettes, or improves weight loss, health, social status or social life, or that it enhances qualities such as femininity, masculinity, elegance, or improves functions of the body, or that its size and appearance are similar to food or cosmetics. Health warnings on the packaging and any outer wrapping must be completely visible to consumers and must not be partially or completely hidden or obscured by tags, price markings, security features, or packaging paper, and must not be permanently covered. Warning text and labels should be displayed on the packaging, including health warnings (contains nicotine, which is highly addictive, and can increase heart rate and blood pressure. Nicotine is harmful to pregnant and breastfeeding women, and those with chronic lung diseases such as asthma and pulmonary embolism).

The requirements for the use of e-cigarettes are the same as those for traditional cigarettes. They cannot be used in public places, indoors or in private vehicles with children under the age of 12 present. According to a high-ranking official from the United Arab Emirates Ministry of Health, Redha Salman, "E-cigarettes are treated the same as regular cigarettes.

Regulations restrict traditional tobacco advertising both online and offline, but do not provide specific guidance for electronic cigarettes. Therefore, it can be assumed that electronic cigarettes can be advertised in the UAE, as shown in the image below. An electronic cigarette company named YOYO has advertised their products on billboards offline.

Source: yoyovapeofficial Instagram.

It is worth noting that the electronic cigarette regulations in Bahrain, another Middle Eastern country, are very similar to those in the United Arab Emirates. The regulations were announced in 2020, one year after the UAE.

Screenshot of Bahrain's electronic cigarette regulations. Source: Ministry of Industry, Commerce and Tourism in Bahrain.

The screenshot of electronic cigarette regulations in UAE is identical to the one mentioned above, except for the difference in nationality. Source: UAE Federal Authority for Government Human Resources.

It can be concluded that the United Arab Emirates (UAE) and Bahrain share consistent regulations on electronic cigarettes. Bahrain's policies were largely influenced by the UAE's when formulating their laws. Due to the UAE's open business environment, high level of internationalization, and mature electronic cigarette market, their regulations serve as a model for many countries in the Middle East. In 2016, Kuwait announced the legalization of importing electronic cigarettes, resulting in an uncontrolled boom in the market. In 2020, Kuwait introduced regulations similar to the UAE's and gradually began to regulate the electronic cigarette market. Thus, understanding the UAE's regulations on electronic cigarettes means understanding those of Bahrain and Kuwait as well.

The second factor affecting the electronic cigarette market is taxation. Currently, Saudi Arabia, the United Arab Emirates, and Bahrain all impose a 100% consumption tax on electronic cigarettes. Kuwait imposes a 10% to 25% consumption tax on "tobacco products," but it does not include electronic cigarettes in the tax base.

Article by Zhu Hongxu

Further Reading:

Flavor Ban, But No Ban on Fruits? - Focus on Middle Eastern Markets and Policies | Saudi Arabia Edition.

Reference:

United Arab Emirates introduces regulations on electronic cigarettes

UAE regulations on food additives

Bahrain introduces regulations for the management of electronic cigarettes.

PwC Middle East Tax News 2022