BAT Bets on MENA as a Linchpin in Its Smokeless, Reduced-Risk Transformation
BAT’s strategic move in the MENA region is redefining its global transformation toward a smokeless world, with the Middle East and North Africa (MENA) area positioned at the heart of this shift. Alexandre Ghanem, who serves as the cluster manager for BAT in MENA, underscores that the company’s rapid transition toward reduced-risk nicotine products is anchored in rigorous science, thoughtful regulation, and a clear read on consumer readiness. This approach aims to move the region toward Tobacco Harm Reduction (THR) by offering adult smokers access to a diverse array of high-quality, scientifically substantiated alternatives that carry a reduced risk profile compared with traditional cigarettes. The strategic premise is straightforward: leverage the region’s demographic and regulatory dynamics to accelerate a shift from smoking to less harmful options, all while maintaining a commitment to safety, efficacy, and transparency.
BAT’s long-standing commitment to the region is highlighted by its six-decade presence in the Middle East. Ghanem emphasizes that the MENA cluster is not only strategically important for the company’s global ambitions but also central to the transformation journey that BAT has undertaken. He notes that the opportunities within MENA are vast, with a growing cohort of smokers who are actively transitioning away from conventional smoking toward products that present lower risk. This consumer demand aligns with BAT’s broader ambition to expedite its THR journey in the region by introducing a wide range of adult-consumer products that are scientifically substantiated to offer reduced risk relative to cigarettes. The emphasis is on adult smokers who seek alternatives that maintain quality, reliability, and a robust evidence base, thereby supporting a transition to a smokeless framework built on science, regulatory alignment, and consumer confidence.
In this opening section, the focus is on how the MENA region is being positioned as a strategic catalyst in BAT’s grand objective of reshaping the nicotine landscape. The emphasis on a 60-year regional heritage is not only a marker of BAT’s entrenched presence but also a signal that the company intends to leverage deep, institutional knowledge about local markets, regulatory environments, and consumer behavior to drive transformational change. The strategy is premised on a three-pillar approach: science-driven product innovation, regulatory collaboration, and consumer education that seeks to align public perception with the realities of reduced-harm alternatives. By framing the MENA cluster as a hub with global implications, BAT signals that its regional activities are designed to inform and accelerate its entire THR program across the world. The cluster’s leadership sees immense potential in facilitating a shift among smokers who are ready to switch to alternatives that offer high-quality standards and a transparent, evidence-based risk profile. The goal is not merely to launch products but to craft a broader ecosystem that enables informed adult consumption decisions and fosters trust with regulators, healthcare professionals, and the general public.
The narrative around “A Better Tomorrow” and “A Smokeless World” as BAT’s guiding mantras frames the company’s regional strategy in moral-ethical, scientific, and economic terms. The concept of a Better Tomorrow implies a forward-looking vision that combines healthier consumer choices with responsible corporate governance and sustained investment in research and development. In the MENA context, this translates into building a smokeless world through product portfolios that emphasize reduced risk relative to cigarettes, designed to meet diverse consumer preferences while undergoing rigorous evaluation of emissions, exposure, and actual harm. The emphasis on adult smokers as the primary beneficiaries of these products reinforces the ethical dimension of BAT’s THR strategy. It is about offering better options for those who already smoke, rather than appealing to non-smokers or encouraging initiation into nicotine use. The MENA region, with its unique regulatory landscapes and consumer profiles, is seen as a testing ground and a showcase for how science-led innovation can reshape market dynamics in a responsible and sustainable manner.
From a market-development perspective, the MENA region presents a compelling blend of opportunity and challenge. The cluster’s leadership notes that the opportunities are immense, driven by a recognizable demand for alternatives that reduce risk while preserving satisfaction and ease of use. The strategy recognizes that a successful THR journey hinges on more than product availability; it requires a comprehensive understanding of consumer readiness, cultural nuances, and regulatory expectations. This is why BAT places substantial emphasis on education, stakeholder engagement, and transparent communication about how smokeless products compare to cigarettes in terms of risk. The aim is not to oversell products but to build trust through rigorous science, independent verification where possible, and consistent messaging that aligns with public health principles. The MENA region’s demographic composition—young populations, rising urbanization, and evolving consumer preferences—creates a conducive environment for a gradual, evidence-based transition toward reduced-risk products that can complement existing tobacco-control efforts.
In addition to the core product portfolio, BAT’s MENA strategy emphasizes talent development and local capacity-building as essential enablers of long-term success. Ghanem highlights that the regional HQ in Dubai serves as a strategic hub that coordinates activities across Asia Pacific, the Middle East, and Africa—specifically the West region—reflecting the city’s status as a leading innovation and business center. This positioning is aligned with BAT’s broader aim to contribute to economic growth and talent development within the region, in line with government visions and national development strategies. The regional focus on local capability-building ensures that the company’s approach remains contextually relevant, culturally sensitive, and attuned to regulatory evolutions. The MENA cluster is thus portrayed not only as a market participant but as a partner in regional progress, investing in education, skill-building, and local leadership to sustain its transformation over the long term.
The evidence of growing consumer interest in smokeless options is complemented by marketplace indicators within the GCC and broader MENA. BAT’s approach acknowledges that the region’s adult smokers are increasingly in search of alternatives with lower risk profiles, capable of delivering comparable satisfaction. This trend is reinforced by the broader business case for investing in science-driven product development and regulatory alignment, aimed at ensuring that new products meet safety, quality, and efficacy standards while addressing consumer expectations. The company’s strategy recognizes that successful adoption depends on a multi-stakeholder ecosystem where regulators, healthcare professionals, retailers, and consumers collaborate to create a supportive environment for THR. In this context, BAT’s MENA initiative is designed to serve as a blueprint for how major tobacco companies can pursue transformative change while maintaining accountability, transparency, and continuous improvement in product safety and risk assessment.
On the regulatory and governance front, the MENA push is underpinned by a disciplined, science-led framework that informs product development and market access. BAT emphasizes that its innovation strategy is rooted in world-class science and a rigorous portfolio-building approach for non-combustible nicotine products. This strategy is designed to respond to the evolving preferences of adult consumers, with the aim of providing options that meet high standards of quality and substantiation. The company’s vision of a “Better Tomorrow” is anchored in the belief that meaningful progress can be achieved through transparent risk assessment, robust data, and ongoing collaboration with regulators around the world. The 9-step risk assessment framework is a cornerstone of this approach, enabling BAT to systematically examine emissions, exposure, risk, and the overall harm associated with smokeless products relative to cigarette smoking. By adopting this framework, BAT seeks to build a robust evidentiary base that can inform regulatory decisions, guide consumer education, and support ongoing improvements in product safety and performance.
In the context of R&D, BAT’s commitment is substantial and clearly articulated. The company reports investing more than £300 million annually in research and development, a figure that underscores the scale of its science-led transformation. This investment supports a global network of innovation centers and a dedicated workforce of more than 1,750 R&D specialists who work across borders to advance non-combustible nicotine technologies. The UAE announcement of VELO, a tobacco-free oral nicotine pouch, illustrates how the company translates its scientific investments into tangible product innovations that can be introduced into regional markets. This development is emblematic of BAT’s broader THR strategy: to move beyond traditional products toward a suite of offerings that maintain consumer satisfaction while aiming to reduce risk in comparison with smoking. The UAE launch also signals the company’s commitment to local market access and regulatory alignment, reinforcing its view that the region can play a pivotal role in shaping the future footprint of smokeless products.
The MENA region’s significance extends beyond immediate product launches and regulatory interactions. It encompasses a broader aspirational narrative about responsible corporate leadership, knowledge sharing, and capacity-building. BAT views its presence in the MENA region as a platform for influencing sustainable development, fostering innovation ecosystems, and supporting policy frameworks that calibrate risk, evidence, and consumer education. This integrated perspective reflects a recognition that a smokeless world requires comprehensive coordination across scientific, regulatory, economic, and social dimensions. Ghanem frames this as a long-term journey that combines ambitious product development with deliberate, transparent engagement with stakeholders, and a commitment to delivering beneficial outcomes for adult smokers who are seeking lower-risk alternatives. In this light, the MENA cluster is positioned not only as a commercial venture but as a strategic initiative that aligns BAT’s global transformation with the needs and opportunities unique to the region, while contributing to a broader global movement toward harm reduction in tobacco use.
Overall, the first major section establishes the MENA region as a central pillar in BAT’s global strategy to transition toward a smokeless world. It emphasizes a threefold foundation: science-driven product innovation, regulatory collaboration and risk-based assessment, and a commitment to education and public trust. It also foregrounds the importance of Dubai as a regional hub, the GCC market dynamics, and local talent development as essential elements that enable sustainable growth. The narrative reflects BAT’s belief that meaningful progress in THR is possible when scientific rigor, regulatory alignment, and consumer education converge in a region characterized by rapid change, diverse cultures, and evolving public health landscapes. In this sense, MENA is not merely a market but a strategic crucible where BAT expects to demonstrate how a multinational corporate transformation can be harmonized with regional development objectives and public-health goals.
Science-led THR Strategy: Emissions, Risk, and Evidence
At the core of BAT’s regional and global transformation is a science-led THR strategy designed to build a comprehensive portfolio of non-combustible nicotine products. This strategy rests on a careful, methodical approach to understanding and communicating the relative risks of smokeless alternatives in comparison with cigarette smoking. As explained by Alexandre Ghanem, the cluster’s leadership is anchored in world-class science and a robust workforce of R&D professionals who operate within global innovation centers across the world. The emphasis is on delivering credible, verifiable evidence that can inform regulators, health professionals, and adult consumers about the relative harm profiles of smokeless products.
The technical backbone of BAT’s THR program is the 9-step risk assessment framework. This framework provides a structured, transparent method for evaluating emissions, exposure, risk, and ultimately the harm associated with smokeless products. The aim is to establish a weight of evidence that scientifically substantiates the relative risk profiles of these products in comparison with cigarette smoking. The 9-step framework guides product development, testing, and post-market surveillance, ensuring that the final product offerings are anchored in rigorous analysis and that any claims regarding reduced risk are supported by methodical research. This approach helps address public health concerns and builds trust with regulators who require robust, independent, or well-validated evidence to support marketing claims about reduced-risk products.
A cornerstone of BAT’s scientific strategy is its substantial investment in research and development. With annual expenditures exceeding £300 million on R&D, the company sustains a broad research ecosystem that spans multiple disciplines, from toxicology and materials science to consumer behavior and regulatory science. The scale of investment reflects a commitment to continuous innovation in non-combustible nicotine technologies and to strengthening the evidence base for harm reduction. The global network of innovation centers is powered by more than 1,750 R&D specialists who contribute to cutting-edge work that informs product design, risk assessments, and regulatory submissions. This human capital is essential for sustaining the velocity of innovation while maintaining rigorous safety and efficacy standards.
The regional introduction of VELO in the UAE serves as a concrete example of how BAT translates science into market-ready products. VELO represents a tobacco-free oral nicotine pouch designed to deliver nicotine without combustion or tobacco ingredients. The launch in the UAE demonstrates the company’s ability to adapt its scientifically informed portfolio to local market conditions and regulatory environments, ensuring products meet both quality standards and consumer expectations. VELO’s introduction also emphasizes the company’s broader objective to diversify its nicotine product lineup, providing adult smokers with alternatives that may present a different risk profile compared with traditional smokeless products containing tobacco. The emphasis remains on non-combustible, reduced-risk options that can be substantiated through the risk framework and supported by ongoing data collection and post-market monitoring.
Beyond product development, BAT’s science-led THR strategy encompasses an integrated approach to regulatory science, risk communication, and stakeholder engagement. The company’s leadership asserts that THR advances are best achieved through a transparent, evidence-based dialogue with regulators and public health authorities. This approach seeks to harmonize scientific findings with regulatory expectations, ensuring clarity about the relative risks of smokeless products and the conditions under which they can be made available to adult consumers. The emphasis on responsible communication highlights the importance of avoiding misperceptions about nicotine and smokeless products. BAT recognizes that misperceptions persist not only in the region but globally, and it cites the ongoing challenge of informing the public about the science of nicotine, exposure, and harm.
In parallel with product innovation, BAT stresses the importance of clarifying the distinction between nicotine itself and the broader risk profile associated with smoking traditional cigarettes. The company’s public messaging acknowledges that nicotine vaping is not risk-free, but it is less harmful than smoking, a stance that aligns with cautious, evidence-based public health statements in well-known health authorities. This nuanced messaging is intended to support informed decision-making among adult smokers while avoiding unintended uptake by non-smokers or youth. The company’s strategy seeks to maintain credibility by ensuring that any reductions in risk are scientifically grounded and transparently communicated, rather than overstated or misleading.
The science-led THR approach also includes a commitment to assess consumer behavior and market dynamics. The company recognizes that consumer acceptance depends not only on the availability of reduced-risk products but also on a clear understanding of how adult smokers perceive these products and how they weigh risk relative to their current smoking habits. The approach emphasizes education and information-sharing to improve consumer understanding, reduce misperceptions, and support informed choices. The regional focus on MENA includes tailored outreach that respects cultural contexts while maintaining consistency with global science-based standards. This aligns with BAT’s broader strategic aim to create a cohesive, evidence-driven THR ecosystem that can scale across markets, supported by compelling data, transparent risk assessments, and a commitment to continuous improvement in products, testing, and regulatory alignment.
The investment in science and the 9-step framework collectively underpin BAT’s confidence in arguing for a credible harm-reduction narrative. They provide a mechanism to quantify and compare the risks of different nicotine products, enabling regulators and public health partners to weigh the evidence in a rigorous manner. The UAE’s VELO introduction, the global research program, and the expansion of smokeless product offerings across the MENA region reflect a deliberate strategy to diversify the portfolio while maintaining a strict evidence-based approach. The ultimate aim is to ensure that products marketed as reduced-risk options are not only appealing to adult smokers but also supported by an enduring foundation of scientific rigor, regulatory cooperation, and transparent communication about risk, emissions, exposure, and harm. This comprehensive science-led approach is central to BAT’s ambition to translate the THR concept into concrete market realities across the Middle East and North Africa, with implications that extend to its global operations and long-term strategy for a smokeless world.
Regulatory Backbone and Innovations: The Role of VELO in the UAE
BAT’s regional strategy emphasizes regulatory alignment and the development of a local regulatory ecosystem that can support the introduction of reduced-risk products while protecting public health. Central to this is the ongoing work with public health authorities, regulators, and other stakeholders to ensure that new smokeless products meet stringent safety, quality, and efficacy standards. The UAE launch of VELO—a tobacco-free oral nicotine pouch—serves as a tangible example of how regulatory-readiness and product innovation intersect in the region. By bringing a tobacco-free option to the market, BAT demonstrates its willingness to navigate regulatory requirements with a science-driven approach that highlights the reduced-risk attributes of its products. The UAE market, with its robust regulatory environment and openness to innovation, provides a meaningful testing ground for evaluating product performance, consumer acceptance, and regulatory fit. The VELO product’s introduction signals BAT’s intent to customize its portfolio for the UAE and similar markets while maintaining alignment with global risk assessment frameworks.
A core aspect of BAT’s regulatory strategy is its emphasis on risk assessment and evidence-based decision-making. The company’s 9-step framework informs not only product development but also regulatory submissions, post-market surveillance, and ongoing risk communication strategies. This framework ensures that emissions, exposure, and risk calculations are systematically explored and documented, enabling regulators to make informed judgments about relative risk and consumer safety. The emphasis on risk-based evidence is designed to reduce uncertainty and promote consistent regulatory expectations across markets while preserving the flexibility needed to adapt to regional variations in law, public health goals, and consumer behavior. The MENA region, with its diverse regulatory landscapes, requires a nuanced approach that respects local frameworks while aligning with BAT’s global standards for scientific integrity and product safety.
In terms of local development, BAT’s strategy includes a strong focus on talent development and knowledge transfer. The company highlights its Dubai regional headquarters as a strategic location that coordinates operations across Asia Pacific, the Middle East, and Africa, particularly for the West regions. This hub is described as essential for leveraging Dubai’s status as a leading business and innovation center, enabling BAT to align its corporate capabilities with regional growth trajectories and public-sector priorities. The emphasis on local talent development is consistent with BAT’s broader mission to contribute to the economic growth of the region and to build a workforce that understands both the technical and regulatory dimensions of smokeless products. By cultivating local expertise, BAT aims to ensure that its THR strategy not only delivers products but also fosters sustainable job creation, knowledge networks, and collaborations with universities, research institutes, and policymakers.
The GCC market is a focal point for BAT’s operational expansion, as rising consumer interest in smokeless products intersects with growing purchasing power and urbanization. Local research from Kantar indicates a notable degree of openness among UAE consumers toward non-combustible products. Specifically, 7.8 percent of UAE consumers were already using non-combustible products, while a larger segment—83 percent of respondents—were receptive to switching from smoking to these products. This data signals a robust underlying demand that BAT views as a signal of potential uptake, provided that products meet consumer expectations for quality, safety, and efficacy. The interpretation of these findings suggests a favorable environment for introducing smokeless offerings, contingent on ongoing education and careful navigation of regulatory requirements. It also emphasizes the importance of aligning product development with local consumer insights, ensuring that marketing communications accurately reflect the relative risks involved and avoid overstating benefits.
From a marketing and public communications perspective, the UAE data underscore the need for transparent, evidence-based messaging that clarifies the role of smokeless products within a harm-reduction framework. BAT recognizes that misperceptions about nicotine and smokeless products pose a significant barrier to adoption, both in the region and globally. The Ipsos survey cited by Ghanem—covering 27,000 smokers across 28 countries and finding that 74 percent believe vaping is at least as harmful as smoking—highlights the widespread misinformation that persists in many markets. BAT’s response to this challenge centers on education, collaboration with public health authorities, and the dissemination of accurate information about relative risk, while acknowledging the non-zero nature of residual risk associated with nicotine use. For such messaging to be effective in the MENA region, it must be crafted with cultural sensitivity, regulatory alignment, and a clear emphasis on adult consumer choice, rather than sensationalized claims.
The regulatory journey in MENA is ongoing, and BAT’s approach prioritizes early and open dialogue with regulators and health authorities to shape policies that facilitate safer alternatives while ensuring public health safeguards are in place. The MENA region remains a dynamic landscape in which regulatory frameworks continue to evolve, and BAT’s strategy is to stay ahead of changes by investing in research, data collection, and transparent reporting. By maintaining a science-led stance and engaging with stakeholders, BAT seeks to build a credible regulatory pathway for smokeless products that can be scaled across markets. The UAE’s example with VELO is intentionally positioned as a reference point for how similar products might be evaluated and adopted in other regional markets, thereby contributing to a broader regulatory precedent within the GCC and surrounding regions.
Education and Perceptions: Addressing Misconceptions About Nicotine and Smokeless Products
One of the most persistent challenges BAT faces in advancing THR in the MENA region is public misperception about nicotine and smokeless products. Ghanem highlights that misperceptions around nicotine and smokeless products remain a significant obstacle, not only regionally but globally. A large portion of the public believes that all smokeless alternatives are equally harmful or even more harmful than traditional tobacco products. This belief contributes to hesitancy in adopting reduced-risk options and can undermine rational decision-making among adult smokers who might benefit from a lower-risk alternative.
A global Ipsos survey of 27,000 smokers across 28 countries provides a stark illustration of this misperception. The survey found that 74 percent believe vaping is at least as harmful as smoking, underscoring the depth and breadth of misunderstanding about relative risk. This disconnect between public perception and the evidence base for reduced-risk products presents a major hurdle to adoption. BAT’s response to this challenge centers on education and information dissemination, with a commitment to presenting balanced, science-backed assessments of nicotine products. This includes acknowledging that nicotine vaping is not risk-free, but that it is generally less harmful than smoking. In communicating with regulators and the public, BAT emphasizes that the goal is to provide accurate, contextualized information about risk, exposure, and potential harm, rather than sensationalized or absolute claims.
The emphasis on education also extends to professional audiences, including public health practitioners and healthcare providers. By equipping these stakeholders with clear, evidence-based information about reduced-risk products, BAT aims to support informed clinical and policy decisions that reflect current scientific understanding. This approach aligns with the company’s broader vision of THR, in which science, regulation, and consumer readiness converge to create an environment conducive to safer nicotine use for adult smokers. It recognizes that misperceptions are a barrier to THR progress and that addressing them requires sustained, credible communication backed by rigorous research, transparent risk assessment, and ongoing engagement with health authorities and the public.
Education initiatives are complemented by efforts to improve consumer understanding of the products themselves. BAT seeks to provide clear information on how smokeless options compare with cigarettes in terms of risk, emissions, and exposure. This objective is achieved by leveraging the 9-step risk assessment framework, which underpins product development and risk communication, ensuring that claims about reduced risk are consistent with the available evidence. In practice, this means that product labels, educational materials, and consumer communications should reflect the relative risk in a measured, responsible way, avoiding overstated claims or promises of complete risk elimination. The goal is to empower adult smokers to make informed choices about whether to switch to reduced-risk products, while maintaining humility about the residual risks and the limitations of current knowledge.
The Ipsos data also highlights regional variations in perception, which BAT acknowledges must be addressed through culturally appropriate messaging and collaboration with local stakeholders. In the MENA context, this involves tailoring educational content to resonate with regional consumer values, social norms, and public health priorities. BAT’s education strategy emphasizes transparency about nicotine and its risks, recognizes the ongoing debate about harm reduction, and seeks to contribute constructively to public discourse by providing scientifically grounded information. The company also recognizes that public health authorities may have legitimate concerns about uptake, youth access, dual-use, and potential unintended consequences, and it commits to ongoing risk assessment and risk-management measures to mitigate such concerns.
In terms of public health advocacy, BAT’s position is that harm reduction can complement existing tobacco-control efforts rather than undermine them. The emphasis is on ensuring that smokeless products are available as safer alternatives for adult smokers who would otherwise continue to smoke, while maintaining strict controls to prevent initiation among non-smokers and youth. This framing requires a critical balance: promoting reduced-risk options without encouraging nicotine initiation or exacerbating other health risks. The MENA region presents a unique context in which cultural, regulatory, and health-system considerations intersect, necessitating a thoughtful, evidence-based approach to public education and policy dialogue. BAT’s education strategy in the region, therefore, centers on building trust through science, engaging with regulators and health authorities, and communicating clearly about the relative advantages and limitations of smokeless products for adult smokers seeking to reduce risk.
Dubai as Regional Headquarters: Economic Growth and Local Talent
A critical dimension of BAT’s regional strategy is the selection of Dubai as the location for its regional headquarters, covering Asia Pacific, the Middle East, and Africa—West regions. The decision to base the regional hub in Dubai reflects the city’s strategic importance as a leading center of innovation, business activity, and regional connectivity. Ghanem notes that the Group’s choice of Dubai is tied to the city’s strategic significance, its status as a premier hub for international business, and its alignment with government visions that emphasize diversification, technology, and human capital development. The Dubai hub is positioned to play a pivotal role in coordinating regional operations, aligning regional initiatives with global standards, and facilitating collaboration with local partners, regulators, and industry stakeholders. The regional headquarters serves as a focal point for the company’s efforts to integrate THR across markets, ensuring consistency in science-based decision-making while allowing for market-specific customization.
Local talent development is a central pillar of BAT’s approach in MENA. The company underscores its commitment to building a robust pipeline of regional talent that can contribute to the economic development and innovation landscape of the region. This involves investments in training, mentorship, and capacity-building programs designed to equip local professionals with the skills needed to support product development, regulatory engagement, and market access. The emphasis on talent development aligns with broader government visions that prioritize knowledge-based economies and the growth of high-skill industries. By fostering local expertise, BAT aims to create a sustainable framework for THR in the region—where regional professionals can lead development and governance of smokeless products, while embedding the company’s values, standards, and scientific rigor within local ecosystems.
Dubai’s status as a regional hub for innovation and business also supports BAT’s objectives around cross-regional collaboration and knowledge transfer. By leveraging Dubai’s connectivity, the company can coordinate activities across Asia Pacific, the Middle East, and Africa, ensuring that lessons learned in one market inform strategies in others. This cross-pollination is especially valuable in the context of regulatory evolution, consumer education, and market access, which often require a nuanced understanding of both global standards and local realities. The regional HQ also serves as a platform for partnerships with academic institutions, research centers, and industry groups that can contribute to the evidence base and the broader THR ecosystem. In this sense, Dubai is not only a logistical base but a strategic asset that enables BAT to maintain agility, foster collaboration, and accelerate the pace of innovation in smokeless products within a rapidly changing regional landscape.
The GCC’s rising consumer enthusiasm for smokeless products is matched by BAT’s operational expansion strategy, which seeks to translate demand into sustainable growth. Local market data from Kantar shows a clear signal: a notable minority of UAE consumers (7.8 percent) already uses non-combustible products, while a far larger segment (83 percent) is open to switching from smoking to such products. This information supports BAT’s confidence in the region, reinforcing the sense that a carefully managed rollout—grounded in science, education, and regulatory alignment—can be successful while minimizing public health risks and ensuring consumer safety. The combination of Dubai’s regional hub status, a strong talent development program, and robust market signals presents a compelling case for continued investment in the region, with a focus on maintaining the highest standards of product quality, safety, and regulatory compliance.
The regional strategy also involves a broader commitment to contributing to the Middle East and North Africa’s development goals. BAT positions itself as a partner in economic growth, knowledge transfer, and capacity-building, with a focus on aligning its THR activities with government visions for modernization, diversification, and sustainable economic expansion. By combining a science-led product portfolio with a robust regional infrastructure—headquartered in Dubai—the company can support a trajectory of growth that benefits not only shareholders but also regulators, clinicians, researchers, and the broader public. The MENA cluster’s leadership views the regional headquarters as a catalyst for translating global THR initiatives into local impact, enabling the company to adapt to regulatory changes, respond to consumer needs, and collaborate with public institutions to promote safer nicotine options for adult smokers. The emphasis on local talent and regional coordination underscores BAT’s long-term commitment to the MENA region as a key driver of its smokeless-world transformation, with implications for the company’s global strategy, research investments, and regulatory partnerships.
Market Demand in the GCC: From Interest to Adoption
The GCC market’s rising interest in smokeless products aligns with BAT’s ambitious plan to broaden access to reduced-risk nicotine options across the region. The cluster’s market assessments indicate that consumer openness to transitioning away from smoking is substantial, particularly among adult smokers who seek high-quality, science-backed alternatives. In this context, BAT’s regional strategy emphasizes a careful, staged approach to product introductions that are consistent with regulatory expectations, consumer education, and public health considerations. The GCC markets present a unique opportunity to observe how different regulatory environments, cultural contexts, and health-system structures influence adoption rates and consumer behavior for smokeless products.
Local consumer research, such as the Kantar study conducted in the UAE, provides actionable insights that inform BAT’s market-entry plans, messaging strategies, and product portfolio decisions. The data indicate that a meaningful portion of UAE consumers already uses non-combustible products, while a much larger majority is open to switching from traditional cigarettes to such products. This double-channel signal—existing uptake and high receptivity—points toward a favorable environment for introducing smokeless options within a framework that prioritizes safety, accuracy, and consumer education. It confirms that there is not only interest but a plausible pathway to adoption if products meet expectations around quality, reliability, taste, user experience, and regulatory compliance. BAT’s approach to launching new products, including VELO in the UAE, must therefore consider the nuances of consumer preferences, regional regulatory constraints, and the demands of a health-conscious audience that expects transparency and accountability.
From a product strategy standpoint, the GCC market’s potential requires a portfolio that can address diverse preferences and use-cases. Smokeless options must be positioned not as substitutes for cigarettes in a simplistic sense but as part of a harm-reduction continuum that supports adult smokers who want to reduce risk. This involves clear communication about reduced-risk claims, the strength of the evidence behind those claims, and the conditions under which products are intended for use. It also entails ensuring that the products are user-friendly and accessible, with consistent quality and predictable nicotine delivery to satisfy adult smokers who are seeking a trusted alternative to smoking. The market’s openness to switching suggests that the region could serve as a testbed for broader regional adoption, provided that regulatory harmonization and consumer education progress in ways that align with public health goals and scientific standards.
The UAE’s data also highlight the importance of ongoing education and public health messaging in supporting adoption. As misperceptions persist, it is critical for tobacco companies, regulators, and health authorities to collaborate on public information campaigns that accurately convey the relative risks of smokeless products. This includes distinguishing nicotine and its risks from the broader health risks associated with smoking and emphasizing that reduced-risk products can play a role in minimizing harm for adult smokers. The GCC markets, with their mix of advanced consumption patterns and strong regulatory oversight, offer a balanced environment in which to pursue responsible THR adoption. BAT’s strategy in these markets centers on delivering high-quality products that meet local standards, investing in consumer education, and ensuring that regulatory and health authorities remain confident in the safety and efficacy of smokeless offerings. This approach aligns with the region’s economic development objectives and positions BAT to contribute to a healthier, more informed tobacco landscape in the GCC.
The data-driven approach to market dynamics is complemented by a broader view of consumer welfare and public health goals. BAT acknowledges that harm reduction is not a universal solution and that it must be deployed in a manner that respects local health priorities, regulatory contexts, and cultural norms. The company’s strategy recognizes the need for a balance between innovation and precaution, ensuring that product introductions are accompanied by robust risk assessments, ongoing surveillance, and transparent reporting. In this sense, the GCC market is viewed as a microcosm of the global THR initiative, illustrating both the potential for meaningful reductions in harm and the necessity of careful governance to mitigate risks such as youth access and dual-use. BAT’s regional approach is designed to maximize the likelihood that smokeless products will be adopted by adult smokers who would otherwise continue to smoke, while maintaining safeguards that protect public health and support regulatory expectations.
Building A Smokeless World: BAT’s Long-Term Vision
BAT’s long-term vision centers on building a “Smokeless World” that is anchored in science, regulation, and consumer readiness. The regional strategy expresses a clear intention to pursue this transformation in the MENA region by integrating high-quality smokeless products into a broader ecosystem that supports adult smokers seeking reduced-risk alternatives. The articulation of a shared mission—“A Better Tomorrow”—embodies a commitment to responsible innovation, stakeholder engagement, and continuous improvement in product safety and performance. The region’s role in this vision is pivotal: it provides both a testing ground and a demonstration of scalable impact that can inform BAT’s global THR agenda. The company’s leadership emphasizes that this is not a one-time product launch but a sustained, strategic effort to shift consumer behavior, regulatory norms, and public health discourse toward harm reduction.
The MENA cluster’s approach to talent development and local ownership aligns with this long-term vision. By investing in local expertise and building a regional leadership pipeline, BAT aims to ensure that its smokeless-world strategy is adapted to local realities, while maintaining alignment with global standards and evidence-based practices. This emphasis on local leadership helps create durable capabilities that can sustain the company’s efforts even as markets evolve and regulatory environments shift. The Dubai hub, as a regional headquarters, plays a crucial role in stewarding this process, coordinating activities across markets, and fostering collaboration with regional governments, healthcare communities, and industry peers. The regional focus on talent development is not only a staffing measure but a strategic investment in the region’s ability to meaningfully contribute to the global THR program.
In practice, BAT’s smokeless-world strategy in MENA involves a deliberate expansion of its product portfolio to include smokeless, reduced-risk options alongside traditional tobacco products. The aim is to provide adult smokers with meaningful choices that can lead to reduced exposure to harmful constituents, while ensuring that the products meet stringent regulatory and safety standards. This multi-pronged approach is designed to mitigate risk, support informed consumer decisions, and establish a trustworthy framework for risk communication. The VELO launch in the UAE exemplifies how the company translates science into market opportunities, demonstrating that a tobacco-free option can be introduced in a regulated environment with robust safety and quality assurances. The UAE case provides a practical template for how other markets in the region might adopt similar approaches, provided that regulatory readiness and consumer education remain central to the rollout.
A critical dimension of the long-term vision is the ongoing collaboration with regulators, health authorities, and policymakers. BAT recognizes that the success of a smokeless-world strategy depends on maintaining open channels of dialogue, sharing robust evidence, and aligning product development with public health priorities. This collaboration is essential for building an ecosystem in which smokeless products are available to adult smokers as part of a regulated harm-reduction continuum, while ensuring that safeguards are in place to prevent uptake by youth and non-smokers. The company’s regional activities, including education campaigns, stakeholder engagement, and transparent risk assessments, contribute to a more informed policy environment that can accommodate harm-reduction strategies without compromising public health objectives. The long-term vision thus encompasses not only product development and market access but also comprehensive governance, regulatory collaboration, and educational initiatives that together advance a sustainable framework for THR in MENA and beyond.
In sum, BAT’s long-term ambition is to realize a smokeless world in which reduced-risk nicotine products are normalized as credible, responsible options for adult smokers. The MENA region is central to this ambition: it provides the strategic, regulatory, and consumer landscape in which the company can demonstrate the viability of its science-led THR program, test innovative product concepts like VELO, and cultivate local talent that will sustain and scale the initiative over time. The Dubai regional headquarters, the regulatory partnerships, and the data-informed market strategies all contribute to a comprehensive plan that seeks to deliver meaningful health and societal benefits while pursuing sustainable business growth. The overarching message is clear: BAT’s transformation toward THR is not limited to product changes but represents a holistic, regionally informed approach to reducing risk for adult smokers through science-based innovation, regulatory collaboration, and proactive education.
Conclusion
BAT’s expansion of its THR-focused strategy in the MENA region marks a deliberate, multi-faceted shift toward a smokeless world, with the MENA region positioned as a central pillar in the company’s global transformation. The leadership underscored by Alexandre Ghanem emphasizes a 60-year regional heritage, a strong belief in the opportunities presented by smokers ready to switch, and a clear commitment to science, regulation, and consumer education as the pillars of progress. The 9-step risk assessment framework provides a rigorous, transparent mechanism for evaluating emissions, exposure, risk, and harm, enabling the company to substantiate the relative risk profiles of smokeless products in comparison with cigarettes. The substantial R&D investment—over £300 million annually—and the involvement of more than 1,750 researchers reflect BAT’s dedication to building a robust evidence base that informs product development, regulatory submissions, and market access strategies.
The UAE’s VELO launch serves as a concrete example of how the company translates scientific advances into market-ready solutions within a regulatory framework that supports harm reduction while safeguarding public health. The UAE demonstrates that a tobacco-free oral nicotine pouch can be introduced in a market that values high standards of safety, quality, and efficacy, illustrating how science-led innovation can align with regulatory expectations to create meaningful consumer options for adult smokers seeking reduced risk. The emphasis on education is critical to addressing misperceptions about nicotine and smokeless products. The Ipsos survey findings reveal widespread misunderstandings about the relative risks of vaping, underscoring the importance of transparent, evidence-based communication. BAT’s approach to education—noting that nicotine vaping is not risk-free but less harmful than smoking—reflects a cautious and responsible stance that seeks to build trust with regulators, health professionals, and consumers alike.
Dubai’s selection as the regional headquarters highlights the strategic value of the city as a hub for innovation, business, and talent development. The region’s regulatory environment, market dynamics, and growth potential align with BAT’s commitment to contribute to the Middle East and North Africa’s economic development and public health goals. The Kantar data indicating that 7.8 percent of UAE consumers already use non-combustible products and that 83 percent are open to switching suggests a receptive market characterized by readiness to embrace harm-reduction options. These insights, combined with the region’s dynamic regulatory landscape and BAT’s robust risk framework, point toward a trajectory of responsible growth that prioritizes consumer safety, regulatory compliance, and transparent communication.
In the broader sense, BAT’s MENA strategy reflects a holistic approach to transforming the nicotine landscape—one that integrates science, regulation, education, and economic development into a comprehensive plan for a safer future. The company’s emphasis on local talent development and Dubai’s role as a regional hub demonstrates a commitment to building sustainable capabilities that can sustain THR initiatives across markets. The overarching aim is to offer adult smokers high-quality, scientifically substantiated, reduced-risk nicotine products while maintaining rigorous product standards and responsible governance. By aligning product innovation with regulatory readiness and consumer education, BAT seeks to create a scalable model for harm reduction that can inform global practice and contribute to improving public health outcomes in the region. The journey toward a smokeless world in MENA is ongoing, with the region serving as a crucial proving ground and a beacon for how science-led, regulation-aligned approaches can reshape the tobacco landscape in meaningful, long-term ways.