Vape Revenue UAE: Annual Industry Insights & Trends

Vape Revenue UAE

May 9, 2025

Introduction

Vaping has taken the world by storm, and the United Arab Emirates (UAE) is no exception. With shifting regulations and rising consumer interest, the vape revenue in UAE has grown into a substantial segment of the tobacco alternatives market. Whether you’re a business owner, investor, or simply curious, understanding the scale and dynamics of this industry is essential.

In this article, we explore the current vape market trends in the UAE, revenue estimates, government regulations, and what the future holds for this thriving industry.

Understanding the Vape Industry Landscape in the UAE

The UAE’s vape market has evolved rapidly since 2019, when the government lifted its ban on e-cigarettes and vaping devices. Since then, consumer demand, supported by a health-conscious population and tech-savvy youth, has driven the market forward.

Legalization and Market Entry

Before 2019, selling or importing vaping devices was illegal. However, the Emirates Authority for Standardization and Metrology (ESMA) introduced new standards under the “UAE.S 5030” law, allowing regulated vape sales. This decision significantly boosted the market’s potential and opened doors for global vape brands.

Annual Vape Revenue in UAE: Current Estimates

The vape revenue UAE generates annually has reached impressive levels. Based on market research and financial reporting:

As of 2024, the annual vape revenue in UAE is estimated to be over AED 450 million (approx. USD 122 million).
This marks a compound annual growth rate (CAGR) of nearly 18% since the 2019 legalization.
Dubai alone accounts for a significant portion, thanks to tourism and high disposable income.

Market experts predict the revenue may exceed AED 600 million by 2026 as the industry matures and gains broader acceptance.

Key Factors Driving Vape Revenue in the UAE

Several factors contribute to the strong performance of the vape industry in the UAE.

Regulatory Support and Clarity

The ESMA’s standardization offers businesses a clear roadmap for legal compliance. Retailers and distributors now operate in a regulated environment, boosting consumer confidence.

Public Awareness and Shift from Smoking

Many UAE residents are transitioning from traditional cigarettes to vaping. This shift is often driven by health concerns and the desire to quit smoking, with vaping seen as a less harmful alternative.

Tourism and Expat Market

The UAE hosts a large expat population and millions of tourists annually. Many of these consumers are already familiar with vaping, creating sustained demand.

E-commerce and Retail Expansion

Online vape stores, along with physical shops in Dubai, Abu Dhabi, and Sharjah, have made vape products easily accessible. Fast delivery, product variety, and marketing have all contributed to rising sales.

Popular Vape Products in the UAE Market

In terms of sales volume and revenue, certain product categories dominate.

E-liquids

Flavored e-liquids generate significant revenue. Nicotine salt varieties are especially popular due to their smoother throat hit and faster nicotine absorption.

Disposable Vapes

These are trending due to their convenience and ease of use. Many tourists prefer disposables, increasing seasonal revenue.

Pod Systems

Favored for their sleek design and refillable pods, these devices are popular among younger adults and long-term users.

The Role of Vape Retailers and Distributors

Retailers are central to shaping the vape revenue UAE statistics. Several prominent chains and online platforms operate across the UAE, ensuring consistent supply.

These businesses often engage in local marketing, discounts, and brand partnerships, which drive repeat purchases. Many also focus on providing detailed product information to help users make informed decisions.

Government Regulation and Its Impact on Revenue

Taxation Policies

In 2019, the UAE introduced a 100% excise tax on e-cigarettes and vaping liquids. While this doubled the retail price, it didn’t hinder growth. Instead, the revenue generated from taxed products added to the government’s income, while also legitimizing the industry.

Advertising Restrictions

While vape ads are restricted on mainstream platforms, companies rely on SEO, word-of-mouth, and influencer collaborations to reach customers—especially younger demographics.

Projected Growth: What Does the Future Hold?

The future of vape revenue in UAE looks promising.

Revenue is projected to grow at 12–15% annually between 2025 and 2030.
Introduction of more diverse products and nicotine-free options may broaden the consumer base.
As regulations further standardize product quality, consumer trust is likely to increase.

International vape brands are also eyeing the UAE for expansion, expecting the country to serve as a regional hub for the Middle East vape market.

Challenges Facing the Vape Industry in UAE

While growth is evident, the industry also faces challenges.

Health Concerns and Misinformation

Despite scientific evidence showing vaping as less harmful than smoking, misinformation still affects adoption rates. Public awareness campaigns and educational content could help counteract this.

Regulatory Risks

Future restrictions, such as flavor bans or marketing limitations, could slow growth. However, with active dialogue between stakeholders and regulators, the industry hopes for a balanced path forward.

A Rapidly Growing Market With Long-Term Potential

The vape revenue UAE market continues to expand, backed by clear regulations, a health-conscious consumer base, and a modern retail infrastructure. While challenges persist, the UAE is well-positioned to become a leader in the Middle East’s vape economy.

For investors, entrepreneurs, and vape users, understanding this market now could yield significant opportunities in the near future.

Are you looking to tap into the UAE vape market? Stay informed, stay compliant, and explore this high-growth industry today.