The illicit e-vapour trade presents a challenge to legally distributed products in the Middle East. E-vapour products were previously banned in many Middle Eastern countries, allowing an already established illicit market to thrive, even after legalisation. The rapid expansion of e-commerce has further intensified the issue, enabling the easy sale of illicit e-vapour products through online platforms. This has created a mixed environment of legal and illicit operating within the same space. Successfully navigating the e-vapour market in the Middle East requires a thorough understanding of these challenges and a strategic approach that allows brands to mitigate the illicit trade risk.
The blurred line between legal and illicit e-vapour
Due to the time lag before legal requirements were set down, the illicit e-vapour market was allowed to flourish. As such, illicit e-vapour products had already developed their own brand landscapes, product variety and distribution channels in which they were thriving. Independent vape shops, both physical and online, offered various illicit e-vapour products, with several retailers selling unregistered flavours and high-nicotine products that now exceed legal limits.
To clarify, illicit e-vapour products include unregistered brands and flavours, those with higher-than-allowed nicotine strength, brands with non-payment of taxes, those with no health warnings, smuggling from abroad and distribution through unauthorised channels. The graph below illustrates where each country stands on legalisation: 
But the line between illicit and legal has been blurred. Some brands are sold exclusively in the legal market, adhering to all regulatory requirements. Other brands operate within the legal framework but also tap into illicit channels that offer unregistered products exceeding nicotine strength limits. Meanwhile, some brands exist solely in the illegal market, with no presence in the legal sector.
For example, My Vapery leads in the legal e-vapour market in the UAE, with licensed products available across the country through multiple stores and kiosks. Petrol stations, such as ADNOC, ENOC, EPPCO and Emarat, and supermarkets like Carrefour and Geant also play a key role in distributing e-vapour products. These retailers offer registered products that comply with safety and quality standards.
But illicit products remain popular. Unregistered SKUs from popular brands like VGOD and Geek Bar are available through illicit channels across the region. Monster disposable vapes and e-liquids appear in illicit channels in the UAE, despite strong sales in official stores. Saudi Arabia has seen non-compliant products from brands like Mazaj, MYLE, and Nasty, which are sold through parallel channels. Egypt’s illicit market includes unregistered Oxva cartridges and Vozol disposables, along with various e-liquids like Tokyo and Sprinkles. In Jordan, Breeze e-vapour products hold a significant share of the illicit market, covering both disposables and e-liquids.
Illicit trade of e-vapour products strong in the Middle East
How big is the illicit e-vapour market in the Middle East?
Approximately 80% of e-vapour products sold in the Middle East are illicit, with their volume growing faster than legal products in many markets
Source: Euromonitor International
The share of illicit products varies by market and is influenced by regulations, consumer purchasing power, the availability of local products, and the popularity of different vape categories. Across the Middle East, the illicit share is largest within e-liquids, with moderate sales within closed system single use, and minimal sales within closed system cartridges. Countries like Egypt indicate high usage of open system e-vapour products, which tend to have higher illicit market shares. Many local brands in Egypt operate illegally due to affordability and ease of avoiding regulations, contributing to the country’s high illicit vape share.
Multiple flavours and better pricing drive demand
The demand for better “value for money” is a key driver for strong illicit sales. In many countries, there is a limit of nicotine allowed in each product and buying lighter and legally permitted options isn't cost-effective for some consumers. The price gap between vapes of different nicotine strength is not significant, making larger-capacity illegal vapes the preferred choice. This is particularly relevant for consumers struggling with economic challenges and rising inflation. As a result, unregulated e-vapour products – many imported from China – flood the Middle Eastern market, offering products up to 60% cheaper than legal alternatives.
The demand for product variety is another driver. One of the main draws of e-vapour products, compared to cigarettes, is the variety of flavours and device options.
Illicit e-vapour products provide a greater variety of products than the legally regulated range, further attracting consumers to opt for illicit alternatives
Source: Euromonitor International
Social media also plays a significant role in promoting illicit sales of e-vapour products, especially in Egypt. A significant portion of illicit transactions occur through e-commerce platforms and social media networks, making regulation and enforcement more challenging.
Navigating a mixed e-vapour landscape
Illicit vape trade in the Middle East continues to expand, driven by affordability, variety, and online accessibility. As governments introduce new regulations, the balance between legal and illicit sales may shift; however, the overall demand for illicit e-vapes in the Middle East will remain strong in the short term. Nevertheless, established brands that offer diverse products and flavours through trusted retail channels in major urban areas can continue to capture market share by appealing to consumers who prioritise high-quality and lower-risk products.
For a global view of the illicit landscape, read our recent article, Navigating the E-Vapour Market and the Rise of Illicit Products.
Read our briefing, Top Five Trends in Nicotine, for a global overview on tobacco.