UAE Vape Retailers Talk 2025 Challenges
The vape industry in the UAE is undergoing rapid changes as it heads into 2025. With evolving regulations, increased taxation, and shifts in consumer behavior, vape retailers across the Emirates are preparing for a challenging yet transformative year. From compliance issues to emerging health narratives, 2025 is shaping up to be a turning point for businesses in this niche. We spoke to UAE vape retailers and industry experts to understand what lies ahead and how businesses can adapt to thrive.
The Vape Industry UAE: A Snapshot
Over the past five years, the vape industry in the UAE has grown from a niche market to a mainstream alternative to tobacco. Legalized in 2019, the market saw a surge in popularity, especially among younger adults.
Government Regulations & Legalization
The UAE government’s decision to legalize vaping aimed to control the black market and introduce safer, regulated alternatives to smoking. Since then, the Emirates Authority for Standardization and Metrology (ESMA) has played a central role in setting standards for e-cigarettes and vape juices.
Market Size and Growth
According to Statista, the Middle East and Africa vaping market was valued at over $267 million in 2023, with the UAE being a key contributor. The vape industry UAE continues to expand, but growth is now being tempered by emerging restrictions and changing public perceptions.
Top 2025 Challenges Vape Retailers Expect
Regulatory Pressure
As 2025 approaches, new regulatory measures are expected from the UAE government to tighten control over vape product sales.
Licensing & Compliance
Retailers will need to maintain up-to-date licenses and comply with new labeling, marketing, and packaging rules. Authorities are focusing on limiting youth access and ensuring product safety.
“One of our biggest concerns is compliance with changing labeling rules,” says Faisal Ahmed, owner of a vape store in Dubai. “We’re investing in legal counsel to stay ahead.”
Flavored Vape Restrictions
Like in other countries, the UAE may move to ban or restrict flavored vape products. This poses a risk to a significant portion of retail sales, especially those driven by fruit and candy-flavored e-liquids.
Taxation Increases
The UAE already imposes a 100% excise tax on vape products. Industry insiders anticipate a potential hike in 2025, making products more expensive and possibly pushing users back toward cigarettes or the black market. Retailers are bracing for price-sensitive customers to reduce purchases or shift to online stores outside the UAE, despite such sales being technically illegal.
Import Delays & Logistics Issues
With growing scrutiny at customs, especially around vape juice imports, supply chains are tightening “We’ve faced shipment delays of up to four weeks,” says Reem Al-Nuaimi, who runs an online vape shop in Abu Dhabi. “It’s making inventory planning a nightmare.”
Public Health Campaigns
Global and regional campaigns are increasingly highlighting the risks of vaping, especially among youth. The World Health Organization has advised against e-cigarette use among non-smokers. This creates reputational challenges for vape brands trying to market their products responsibly. Retailers may need to adjust marketing strategies to focus more on smoking cessation and harm reduction rather than lifestyle branding.
Adapting to the 2025 Vape Landscape
Emphasizing Compliance and Education
Retailers who proactively educate consumers and align their marketing with public health goals will fare better. Offering printed guides, running awareness campaigns, and training staff on proper usage can boost customer trust.
Product Diversification
To reduce dependence on flavors and imported juices, many stores are shifting to local or UAE-compliant products. Some are also exploring adjacent products like nicotine pouches or herbal alternatives.
Leveraging E-commerce Legally
While UAE law restricts direct online vape sales, some retailers are creating click-and-collect systems or partnering with licensed delivery services. Smart UX design and mobile optimization will be crucial for 2025.
Strategic Pricing
Retailers are exploring bundling strategies, loyalty programs, and financing options (e.g., buy now, pay later) to mitigate the impact of higher taxes.
“Customer retention in 2025 will come down to value offerings,” says Saeed Al Tayer, co-founder of VapeHub UAE. “Not everyone can absorb a 10–15% price hike.”
Global Trends Influencing UAE’s Vape Market
Shift Toward Nicotine-Free Products
As consumer awareness grows, nicotine-free vape options are gaining ground. Retailers are capitalizing on wellness trends by introducing CBD-infused or herbal vape options — where legal.
Regulatory Imitation
The UAE often aligns with broader Gulf Cooperation Council (GCC) standards. If countries like Saudi Arabia or Kuwait introduce stricter rules, the UAE may follow suit.
Rise of Disposable Vapes
Despite environmental concerns, disposable vapes are still popular due to convenience. However, UAE may soon regulate disposables more tightly due to their growing impact on e-waste and youth accessibility.
UAE Vape Retailers Share Strategic Advice
Prioritize Documentation
Ensure your business has legal paperwork updated and is ESMA-compliant. This reduces the risk of hefty fines or store closures.
Engage With Authorities
Join industry groups or trade associations that communicate directly with regulators. Early access to policy drafts gives time to adapt.
Train Staff Regularly
Invest in staff education on product knowledge, legal restrictions, and customer safety. Informed staff build credibility.
2025 Will Be a Make-or-Break Year
The vape industry UAE is at a crossroads in 2025. Retailers face real challenges — from tighter regulations to shifting consumer expectations. But for those willing to adapt, innovate, and comply, opportunities still exist. Staying informed, building community trust, and diversifying products can help UAE vape businesses not only survive but thrive in the coming year. Are you a UAE vape retailer looking to stay ahead of 2025 changes? Subscribe to our newsletter for the latest updates, legal advice, and exclusive business insights tailored for the vape industry.
FAQ: Vape Industry UAE in 2025
Is vaping legal in the UAE in 2025?
Yes, vaping remains legal in the UAE, but strict regulations apply regarding sales, packaging, and product standards.
Are flavored vapes banned in the UAE?
As of now, flavored vapes are legal, but future regulations may restrict or ban certain flavors.
How much tax is applied to vape products in the UAE?
Vape products are subject to a 100% excise tax in the UAE. This may increase in 2025.
Can I buy vape products online in the UAE?
Online vape sales are regulated. Some businesses offer click-and-collect or licensed delivery services.
What are the new regulations expected in 2025?
Retailers anticipate stricter packaging rules, potential flavor bans, and higher taxes.
