A new tax on tobacco and sugar-laden drinks should be the first step in a wider attack on the causes of poor public health, doctors have said.
Medics described the doubling of the cost of cigarettes, signed by the President, Sheikh Khalifa, on Monday as a significant milestone but said the move should be viewed as the start of a mindset change in the way we live our lives.
Carbonated soft drinks like Coca Cola will also be 50 per cent more expensive. The Excise Tax is due to come in some time between October and December.
The introduction of VAT on such products is expected to hit smokers and buyers with a further 5 per cent from January 1.
Dr Jairam Aithal, a cardiovascular consultant at Burjeel Hospital in Abu Dhabi, said he would like to see the government to take further action.
“Sugar is a killer, and how can it be right that a 2.5 litre bottle of Coke will cost less than buying the equivalent volume in individual cans?
“It is encouraging the consumer to buy more. That needs to change, as this pricing is pushing people towards an unhealthy option.”
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UAE retailers have to date sold cigarettes, sugary-drinks and junk food at low prices, and cigarettes in particular are much cheaper than in other developed countries.
A can of Monster - a highly-caffeinated energy drink - will rise from Dh6 to Dh12, for example, while a packet of 20 Marlboro cigarettes will rise from Dh11 to Dh22. This brings the cost much closer to the prices often seen in Europe. But cut price brands currently selling for Dh2 per pack will only increase to Dh4, as there is no minimum price set out by the government.
“Whilst it is a great first step, something more concrete in the form of greater punishment is needed, as nothing good comes from smoking and carbonated drinks," Dr Aithal said.
“Putting tax on something won’t necessarily stop people from smoking or drinking sugary drinks.
“People should be rewarded for looking after their health. We have seen initiatives for cab drivers in Dubai and Abu Dhabi who show good practice, and it is clear that positive reinforcement and incentives are as useful as fines and punishments.
“It gives people more of an incentive to change their lifestyle.”
Dr Aithal also advocates concessions on the cost of health insurance for non-smokers and those adopting healthier lifestyles, and said those continuing to smoke should face further financial penalties.
“Insurance premiums of smokers should be considerably higher to act as a deterrent, rather than just a tax on the product – which most smokers here will be able to afford,” he said.
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“It is the natural next step. The only issue is that we would have to rely on honesty, as it can be hard to confirm a smoker just through a routine medical test.”
Effects of smoking only tend to show up on x-rays or blood tests if there is an advanced related health condition, such as lung cancer.
As part of wider measures to improve public health, more running paths and cycling routes should be built, according to Dr Aithal.
“At least with cigarette smoking, there is a continuing acknowledgement that it is bad for health – but that is not happening with sugar, a key cause of diabetes and obesity which are major problems in the UAE."
Passive smoking remains a significant risk to public health, despite efforts by municipalities to place restrictions on shisha cafes.
In Dubai, all cafes must display prominent health warning posters, with pregnant women and children banned from entering. UAE law also prohibits smoking in cars if the child is under 12, but these laws need to be enforced to be effective.
In 2016, the New York University Abu Dhabi studied the effects of hookah smoking indoors on the air quality inside. In 33 homes studied, carbon monoxide levels in rooms where shisha was used were found to be five times higher than in rooms where cigarettes were smoked
Speaking when the new law was announced by the UAE Federal Tax Authority in May, Dr Wedad al Maidoor, director of the National Tobacco Control Committee, said there is a clear link between price and consumption of cigarettes. But she did not rule out further restrictions to help reduce smoking related deaths..
“It is proven a 10 per cent increase in tobacco tax usually results in a 5-10 per cent reduction in the amount of smokers, particularly in those under 18 years old,” she said.
“There is a fixed strategy in place to reduce the number of smokers and on tobacco control. A key component of that is taxation, like we have seen in other countries like Australia and the UK.”
One non-smoker, Mohamed Al Marzooqi, a facility contract manager from Abu Dhabi, 32, said more controls are required on smoking of not just tobacco, but also water pipes, medwakh and the lighting of carcinogenic incense.
“People generally don’t understand the law on smoking in public areas,” he said.
“I don’t think that taxation will improve the local mindset towards smoking. All forms of smoke, including carcinogenics in bukhour and incense should be controlled better.
“There needs to be a mindset change as someone spending Dh20 on cigarettes, will still spend Dh50. It is unlikely to stop them smoking.”
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
Business Insights
- Canada and Mexico are significant energy suppliers to the US, providing the majority of oil and natural gas imports
- The introduction of tariffs could hinder the US's clean energy initiatives by raising input costs for materials like nickel
- US domestic suppliers might benefit from higher prices, but overall oil consumption is expected to decrease due to elevated costs
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
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.”
LEADERBOARD
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COMPANY PROFILE
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
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Killing of Qassem Suleimani
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.
The specs
Engine: 77.4kW all-wheel-drive dual motor
Power: 320bhp
Torque: 605Nm
Transmission: Single-speed automatic
Price: From Dh219,000
On sale: Now
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
Libya's Gold
UN Panel of Experts found regime secretly sold a fifth of the country's gold reserves.
The panel’s 2017 report followed a trail to West Africa where large sums of cash and gold were hidden by Abdullah Al Senussi, Qaddafi’s former intelligence chief, in 2011.
Cases filled with cash that was said to amount to $560m in 100 dollar notes, that was kept by a group of Libyans in Ouagadougou, Burkina Faso.
A second stash was said to have been held in Accra, Ghana, inside boxes at the local offices of an international human rights organisation based in France.
COMPANY PROFILE
Name: Qyubic
Started: October 2023
Founder: Namrata Raina
Based: Dubai
Sector: E-commerce
Current number of staff: 10
Investment stage: Pre-seed
Initial investment: Undisclosed
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
MATCH INFO
Fixture: Thailand v UAE, Tuesday, 4pm (UAE)
TV: Abu Dhabi Sports
More from Neighbourhood Watch:
If you go
Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.
When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.
How to get there: Emirates currently flies from Dubai to Orlando five times a week.
