As the pounding music echoed across Zabeel Hall, flashing lights dazzled and pungent clouds filled the air, Dubai’s first world vape event felt more like a nightclub than a trade show.
The vaping industry is geared up to impress the teen market, something that has attracted controversy and tighter regulation in the US.
Criticism of the industry's intentions is unlikely to fade after the three-day Dubai World Trade Centre extravaganza, where stands such as Chubby Gorilla, Vampire Vape, Suicide Bunny and Vroom targeted new users and smokers to switch to what many claim is a less harmful alternative to tobacco.
In the UAE, the legal age for vaping is 18 and over.
So why are vaping products being so aggressively marketed?
As it's less regulated than the tobacco industry, they can get away with a lot more and are essentially replicating the tobacco advertising playbook from the 1950s and 1960s but with more extravagant names
Andrew Laity,
market researcher
Marketed to smokers wanting to quit but unable to kick the habit, vaping became an alternative that provided users with the hit of nicotine but without the accompanying tar.
The battery-powered e-cigarettes have cartridges filled with a liquid that usually contains nicotine, flavouring and chemicals. The liquid is heated up and converted into vapour that the user inhales.
Vaping still introduces nicotine, which is highly addictive, into the body.
Studies have found that nicotine replacement therapy is the most successful way of staying away from cigarettes. Switching to e-cigarettes, however, does not usually result in giving up the habit.
A growing market
“The UAE market is growing at a phenomenal rate because it is so new,” said Tim Philips, managing director of ECigIntelligence.
“We have been tracking sales in the top 10 stores per quarter in the UAE.
“Sales are generally increasing in the region and quite a bit of traffic is coming to the UAE from outside the country.
“The UAE market is growing a lot faster than that of its neighbours.”
E-cigarettes were banned in Qatar in 2012 and then three years later in Oman, but legalised in Bahrain and Kuwait in 2016.
Three years later Jordan and the UAE followed suit and legalised vaping, with Saudi Arabia in 2020 adopting international standards of vaping.
'They can get away with a lot with advertising'
In the UAE, 76 per cent of vaping products sold are not tobacco flavoured, with buyers opting for sweeter varieties instead.
The most popular choice is fruit flavour, with 39 per cent of sales, compared with 31 per cent in the US and 30 per cent in the UK.
The rest of the UAE market is made up by 21 per cent cooling menthol flavours, 14 per cent tobacco flavour, 12 per cent dessert flavour, 7 per cent sweet candy and 6 per cent beverage flavour.
Last year, a lawsuit filed in the US against Juul Labs said that when first starting out the vaping company bought ad space on websites aimed at young people such as Nickelodeon, the Cartoon Network and Seventeen magazine.
Names like Suicide Bunny and Chubby Gorilla, with their brightly coloured branding have raised eyebrows as to whether children are still the main customer in the crosshairs.
Andrew Laity, a market researcher in the UAE who used to work in the tobacco industry, said the vaping market is using tried and tested means of attracting new customers.
“As with cigarettes before them, the lack of product differentiation leads companies to try and separate themselves through naming and branding," he said.
“As it's less regulated than the tobacco industry, they can get away with a lot more and are essentially replicating the tobacco advertising playbook from the 1950s and 1960s but with more extravagant names.”
Vaping raises new health problems
With only a few long-term studies spread out over years of use, scientists are split on vaping’s long-term physical harm.
Others fear the market is too heavily weighted towards attracting younger buyers, who may be taking up nicotine for the first time, drawn in by cartoon graphics and sweet flavours.
The UK government is pro vaping, with former health body Public Health England stating in 2018 that e-cigarettes were 95 per cent less harmful than conventional smoking.
But it is the age of the consumer that is causing concern.
"Vaping is taking the world by storm,” said Dr Hardik Patel, a specialist pulmonologist at NMC Royal Hospital, DIP.
“Being understood as a substitute for conventional cigarettes, this new vice is slowly gripping the world, encompassing smokers and non-smokers alike. However, it is not all rosy.
“Vaping has its own set of consequences. It is known to cause lipoid pneumonia and even chemical pneumonitis at times.
“These illnesses are acute and at times life-threatening."
The safe alternative is not really that safe after all, Dr Patel said.
“It is my sincere request to people to please refrain from these nicotine products and not believe in stories or information posted by non-certified Individuals.”
This month, the US Food and Drug Administration banned hundreds of thousands of vaping and electronic cigarettes from sale amid fears that more than 80 per cent of users were aged 12-17.
Marketing denial orders were issued for more than 946,000 flavoured products because their applications lacked sufficient evidence that they benefited adult smokers sufficiently to overcome the public health threat they posed in young people.
“These products are not risk-free and are addictive,” said Rebecca Haining, head of regulatory affairs at British American Tobacco in the Middle East.
“We applaud the UAE for taking the initiative to legalise the industry to meet consumer demands and allow adult smokers to switch to a less risky alternative to combustible cigarettes.”
Regulating a new market
“There is a huge opportunity in the UAE to differentiate between smoking and e-liquid – that is the biggest challenge for governments as they begin to lift bans,” said John Dunne, director general of the UK Vaping Industry Association.
Mr Dunne lost both parents to smoking-related lung cancer. He also worked for tobacco giant Altria, the maker of Marlboro cigarettes, for 13 years.
“The UAE industry is in its infancy, but it needs some kind of regulatory body to speak with the government to set ground rules and reasonable regulations to allow the industry to grow in the right way,” he said.
When Mr Dunne took on his new role after leaving the tobacco industry in 2012, there were just 20,000 people vaping, with only two available e-cigarettes to choose from.
Now there are about 60 million people vaping worldwide and more than 450 e-cigarette brands on the market.
“All nicotine products have to go through a strict testing regime so putting a body in place would give more confidence that the products are safe.
“You must have over-18 laws in place and look at flavoured names, descriptions, images and packaging to ensure they are not aimed at young people," Mr Dunne said.
Online companies selling vapes in the UK are required to have identification software installed to ensure the person buying is over 18.
Mr Dunne says the UAE industry is likely to continue to adapt to ensure vapes are kept out of the hands of those under 18.
Mohammed bin Zayed Majlis
The biog
Full name: Aisha Abdulqader Saeed
Age: 34
Emirate: Dubai
Favourite quote: "No one has ever become poor by giving"
The%20trailblazers
%3Cp%3ESixteen%20boys%20and%2015%20girls%20have%20gone%20on%20from%20Go-Pro%20Academy%20in%20Dubai%20to%20either%20professional%20contracts%20abroad%20or%20scholarships%20in%20the%20United%20States.%20Here%20are%20two%20of%20the%20most%20prominent.%0D%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EGeorgia%20Gibson%20(Newcastle%20United)%3C%2Fstrong%3E%0D%3Cbr%3EThe%20reason%20the%20academy%20in%20Dubai%20first%20set%20up%20a%20girls%E2%80%99%20programme%20was%20to%20help%20Gibson%20reach%20her%20potential.%20Now%20she%20plays%20professionally%20for%20Newcastle%20United%20in%20the%20UK.%0D%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EMackenzie%20Hunt%20(Everton)%3C%2Fstrong%3E%0D%3Cbr%3EAttended%20DESS%20in%20Dubai%2C%20before%20heading%20to%20the%20UK%20to%20join%20Everton%20full%20time%20as%20a%20teenager.%20He%20was%20on%20the%20bench%20for%20the%20first%20team%20as%20recently%20as%20their%20fixture%20against%20Brighton%20on%20February%2024.%0D%3C%2Fp%3E%0A
Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
Farasan Boat: 128km Away from Anchorage
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How to avoid crypto fraud
- Use unique usernames and passwords while enabling multi-factor authentication.
- Use an offline private key, a physical device that requires manual activation, whenever you access your wallet.
- Avoid suspicious social media ads promoting fraudulent schemes.
- Only invest in crypto projects that you fully understand.
- Critically assess whether a project’s promises or returns seem too good to be true.
- Only use reputable platforms that have a track record of strong regulatory compliance.
- Store funds in hardware wallets as opposed to online exchanges.
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
White hydrogen: Naturally occurring hydrogen
Chromite: Hard, metallic mineral containing iron oxide and chromium oxide
Ultramafic rocks: Dark-coloured rocks rich in magnesium or iron with very low silica content
Ophiolite: A section of the earth’s crust, which is oceanic in nature that has since been uplifted and exposed on land
Olivine: A commonly occurring magnesium iron silicate mineral that derives its name for its olive-green yellow-green colour
GOLF’S RAHMBO
- 5 wins in 22 months as pro
- Three wins in past 10 starts
- 45 pro starts worldwide: 5 wins, 17 top 5s
- Ranked 551th in world on debut, now No 4 (was No 2 earlier this year)
- 5th player in last 30 years to win 3 European Tour and 2 PGA Tour titles before age 24 (Woods, Garcia, McIlroy, Spieth)
Sun jukebox
Rufus Thomas, Bear Cat (The Answer to Hound Dog) (1953)
This rip-off of Leiber/Stoller’s early rock stomper brought a lawsuit against Phillips and necessitated Presley’s premature sale to RCA.
Elvis Presley, Mystery Train (1955)
The B-side of Presley’s final single for Sun bops with a drummer-less groove.
Johnny Cash and the Tennessee Two, Folsom Prison Blues (1955)
Originally recorded for Sun, Cash’s signature tune was performed for inmates of the titular prison 13 years later.
Carl Perkins, Blue Suede Shoes (1956)
Within a month of Sun’s February release Elvis had his version out on RCA.
Roy Orbison, Ooby Dooby (1956)
An essential piece of irreverent juvenilia from Orbison.
Jerry Lee Lewis, Great Balls of Fire (1957)
Lee’s trademark anthem is one of the era’s best-remembered – and best-selling – songs.
Results
5pm: Maiden (PA) Dh80,000 (Turf) 2,200m, Winner: Zalman, Pat Cosgrave (jockey), Helal Al Alawi (trainer)
5.30pm: Maiden (PA) Dh80,000 (T) 1,600m, Winner: Hisham Al Khalediah II, Fernando Jara, Mohamed Daggash.
6pm: Handicap (PA) Dh85,000 (T) 1,600m, Winner: Qader, Adrie de Vries, Jean de Roualle
6.30pm: Abu Dhabi Championship Listed (PA) Dh180,000 (T) 1,600m, Winner: Mujeeb, Fabrice Veron, Eric Lemartinel
7pm: Wathba Stallions Cup Handicap (PA) Dh70,000 (T) 1,600m, Winner: AF Majalis, Tadhg O’Shea, Ernst Oertel
7.30pm: Handicap (TB) Dh90,000 (T) 1,600m, Winner: Shanaghai City, Fabrice Veron, Rashed Bouresly
8pm: Handicap (TB) Dh100,000 (T) 1,400m, Winner: Nayslayer, Bernardo Pinheiro, Jaber Ramadhan
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
UAE currency: the story behind the money in your pockets
The Sand Castle
Director: Matty Brown
Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea
Rating: 2.5/5
The specs
Engine: 6.2-litre supercharged V8
Power: 712hp at 6,100rpm
Torque: 881Nm at 4,800rpm
Transmission: 8-speed auto
Fuel consumption: 19.6 l/100km
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On sale: now
Mohammed bin Zayed Majlis