The $3 billion e-cigarette industry markets its products as a less toxic product that can help smokers quit. Dan Kitwood/Getty Images
The $3 billion e-cigarette industry markets its products as a less toxic product that can help smokers quit. Dan Kitwood/Getty Images

Support growing for e-cigarette revolution in anti-smoking crusade



E-cigarette regulators in the US have challenged authorities around the world to develop new approaches towards the way nicotine is consumed by smokers.

Speaking at a global e-cigarette summit in Washington DC, experts from science, regulation and public health gave their views on how the industry should develop to help reduce the number of conventional smokers around the world.

The UAE aims to reduce tobacco consumption from 21.6 per cent to 15.7 per cent among men and from 1.9 per cent to 1.66 per cent among women by the year 2021.

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Read more from the e-Cigarette Summit in Washington DC

Nations reconsider re-think on e-cigarette laws

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The UAE's National Tobacco Control Committee intends to bring a complete ban on smoking in public areas, but it remains illegal to sell or distribute e-cigarette devices or fluid refills.

In the US, the Food and Drug Administration (FDA) is the regulatory authority responsible for all tobacco products and electronic nicotine delivery systems.

Mitch Zeller, director of the FDA Centre for Tobacco Products in Silver Spring, Maryland, said regulators and authorities are at a crossroads in how they look to reduce global tobacco use.

“The question now is how can we use the tools of product regulation to have the greatest impact,” he said.

“To improve public health, we need to take a long look at the current approach, as smoking remains the leading cause of preventable death in the US.

“If we get this right, this will decrease the likelihood of future generations of kids becoming addicted to cigarettes, allow more addicted smokers to quit and enable adults to access nicotine through less harmful products.

“As regulators the challenge now is to strike the appropriate balance that encourages innovation but also protects consumers.”

Reducing consumption of cigarettes and tobacco products is one of the key performance indicators of the pillar of world-class healthcare ambitions of the UAE National Agenda.

Although the sale of e-cigarettes and e-shisha pipes is prohibited in the UAE, vaping is rising in popularity with users reliant on an unregulated black market to feed their habit.

Shops selling vapes, e-cigs and refill liquids can have their goods confiscated and face fines up to Dh500,000 for serial offenders.

The FDA has also vowed to come down hard on e-cig vendors targeting children, and has worked with EBay to shut down illegal on-line sales to under age vapers.

Enforcement alone is not enough, Mr Zeller said, as education methods remain critically important.

“There needs to be a sustained public dialogue on nicotine delivery, as there remains many misconceptions,” Mr Zeller said.

“If we are bold enough to envision a world where cigarettes are no longer capable of sustaining an addiction, then the alternative products need to be out there when smokers need them.

“Kids should not be using any nicotine delivery product, and that should also be part of the discussion.”

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Read more:

Almost 3,000 smoking-related deaths a year in UAE, report shows

'Lead by example': health minister asks UAE politicians to quit smoking 

UAE smoking poll: only one in four have changed their habit since introduction of 'sin tax'

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On March 15, the FDA issued the Tobacco Product Standard for Nicotine Level of Combusted Cigarettes, an Advanced Notice of Proposed Rulemaking.

One possible nicotine product standard policy under review by the FDA estimates more than 33 million potential smokers will be deterred from taking up cigarettes by 2100, with smoking rates reducing from current levels of about 15 per cent in the US to just 1.4 per cent.

The policy estimates more than 8 million smoking related deaths in the country will be avoided as a result.

The FDA issued further regulation of flavours in tobacco products and is seeking more research on the role flavours play in consumer behaviours, young people and their associated health risks.

Professor Eric Donny, professor of physiology and pharmacology at the Wake Forest School of Medicine, said smoking declined when people used reduced nicotine cigarettes.

“In order to drive down smoking levels, you have to come up with a substitute for it,” he said.

“A product may address withdrawal systems, but they are not always a valid substitute for cigarettes themselves.

“We’ve seen patches increase the rate of compliance, but people were still smoking cigarettes.

“In many consumer studies, we’ve seen the most common alternative products used are e-cigarettes.”

COMPANY%20PROFILE
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The Melbourne Mercer Global Pension Index

The Melbourne Mercer Global Pension Index

Mazen Abukhater, principal and actuary at global consultancy Mercer, Middle East, says the company’s Melbourne Mercer Global Pension Index - which benchmarks 34 pension schemes across the globe to assess their adequacy, sustainability and integrity - included Saudi Arabia for the first time this year to offer a glimpse into the region.

The index highlighted fundamental issues for all 34 countries, such as a rapid ageing population and a low growth / low interest environment putting pressure on expected returns. It also highlighted the increasing popularity around the world of defined contribution schemes.

“Average life expectancy has been increasing by about three years every 10 years. Someone born in 1947 is expected to live until 85 whereas someone born in 2007 is expected to live to 103,” Mr Abukhater told the Mena Pensions Conference.

“Are our systems equipped to handle these kind of life expectancies in the future? If so many people retire at 60, they are going to be in retirement for 43 years – so we need to adapt our retirement age to our changing life expectancy.”

Saudi Arabia came in the middle of Mercer’s ranking with a score of 58.9. The report said the country's index could be raised by improving the minimum level of support for the poorest aged individuals and increasing the labour force participation rate at older ages as life expectancies rise.

Mr Abukhater said the challenges of an ageing population, increased life expectancy and some individuals relying solely on their government for financial support in their retirement years will put the system under strain.

“To relieve that pressure, governments need to consider whether it is time to switch to a defined contribution scheme so that individuals can supplement their own future with the help of government support,” he said.

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Name: HyperSpace
 
Started: 2020
 
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
 
Based: Dubai, UAE
 
Sector: Entertainment 
 
Number of staff: 210 
 
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding
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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.”

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Director: Hwang Dong-hyuk 

Stars:  Lee Jung-jae, Wi Ha-joon and Lee Byung-hun

Rating: 4.5/5

The specs
 
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
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Fuel economy, combined: 10.6L / 100km

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COMPANY PROFILE
Name: ARDH Collective
Based: Dubai
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Sector: Sustainability
Total funding: Self funded
Number of employees: 4
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Sudden change in behaviour or displays higher levels of stress or anxiety

Shows signs of depression or isolation

Ability to sleep well diminishes

Academic performance begins to deteriorate

Changes in eating habits

Struggles to concentrate

Refuses to go to school

Behaviour changes and is aggressive towards siblings

Begins to use language they do not normally use