UAE cigar market to increase at a CAGR of 9%

The United Arab Emirates cigar market increased in value by 12% through 2012, to hit a market value of approximately AED84 million.

Cigar smoking has a long tradition in the United Arab Emirates. Baqer Mohebi Group has held the exclusive local licence for Habanos SA for more than three decades and the United Arab Emirates ranks in the Cuban producer's top 10 markets worldwide in terms of sales.

Historically tobacco products in general have been very popular in Arab society, with many United Arab Emirates residents smoking shisha in cafes or the traditional midwakh pipe in addition to cigarettes.

Every year, more than three million premium hand-rolled Cuban cigars are sold in the UAE, lifting the county into the top 10 in Havana sales worldwide. And with another three million of cigarellos, plus other sales from non-Cuban cigar products, the UAE is able to post excellent figures.

The key development in cigars in the United Arab Emirates over the past five years has been the rising awareness of cigars among consumers and the subsequent increase in consumption.

Young, affluent residents of the United Arab Emirates, both Western expatriates and a rising number of local Arab citizens are increasingly being drawn to Cuban cigars, which are offered at numerous trendy cigar lounges as well as high-end tobacco specialist retailers, luxury hotels and bars.

Habanos SA is essentially the only coveted luxury tobacco brand in the United Arab Emirates thanks to its near complete dominance of cigars in the United Arab Emirates. The brand's extensive history and reputation for very high quality levels, combined with the prestige and exclusivity of the Habanos brand name makes the company a perfect fit for the United Arab Emirates' very affluent, highly brand-conscious, tobacco loving consumers.

Demand for Cuban cigars is expected to continue rising in the United Arab Emirates over the next five years as increasing numbers of young residents are discovering the joys of smoking the cigars of Habanos SA and learning the principal points of cigar aficionado culture.

Sales of cigars are also set to be boosted by the anticipated increase in inbound tourism in the United Arab Emirates and the forthcoming completion of the numerous hotels which are currently under construction in Abu Dhabi.

The cigar sector is expected to increase in constant value at a compound annual growth rate (CAGR) of 9%, rising to a market value of AED127 million by the end of 2017.

For more information on the United Arab Emirates cigar market, see the latest research: United Arab Emirates Cigar Market

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