Tobacco majors spent billions on R&D of reduced-risk alternatives to smoking since 2008, says exec

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Updated 03 August 2022
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Tobacco majors spent billions on R&D of reduced-risk alternatives to smoking since 2008, says exec

  • Experts share views on how it is essential to rely on evidence when making decisions

DUBAI: British American Tobacco and Philip Morris International invested billions in the research and development of reduced-risk alternatives to smoking

Since 2018, BAT invested over $1.4 billion in R&D to develop innovative new category products, according to Hugo Tan, the company’s regional head of scientific engagement in the Asia-Pacific region and the Middle East.

What matters is not just to believe what people say, but to be guided by the evidence. Not just consumers but also public health experts and regulators often equate nicotine with cigarettes.

Hugo Tan, BAT’s regional head of scientific engagement in the Asia-Pacific and the Middle East.

Tan explained to Arab News that tobacco harm reduction is a strategy that recognizes the harmful effects of combustible cigarettes and encourages smokers to switch entirely to alternatives such as vaping and tobacco-heated products.

“It has been widely accepted and adopted by many countries, including the US, UK, Germany, France and others,” Tan said.

He added that the move is supported by its R&D center in Southampton and 1,500 specialists, who have contributed to publishing more than 130 peer-reviewed scientific studies on its new category products.

Since 2008, PMI has invested more than $9 billion in the R&D of smoke-free products.

Also, among PMI’s professionals are over 930 scientists, engineers and technicians committed to building scientific assessment capabilities, such as preclinical systems toxicology, clinical and behavioral research, and post-market assessment, according to the company’s website.

“In order to evaluate the reduced risk potential of our smoke-free products, we have developed a comprehensive scientific assessment program that is inspired by standard practices in the pharmaceutical industry and in line with the guidance provided by the US Food and Drug Administration for evaluation of modified risk tobacco products,” said Ignacio Gonzalez Suarez, head of scientific engagement Middle East and Africa, PMI.

He added: “Our program follows the international quality standards, such as Good Laboratory Practices and Good Clinical Practices and, since 2008, has resulted in over 400 peer-review scientific publications and book chapters showcasing our data and methods.”
 

Myths about nicotine

Tan clarified many myths about nicotine and explained how it is essential to rely on evidence when making decisions.

“What matters is not just to believe what people say, but to be guided by the evidence,” he continued.

Not just consumers but also public health experts like him and regulators often equate nicotine with cigarettes, Tan added.

Evidence has shown, however, that it is primarily the smoke from tobacco combustion and not nicotine that causes most of the health risks associated with cigarettes. Nicotine, he said, is only one of many chemicals found in cigarettes.

BAT has also completed a study, which is yet to be published, on a clinical trial on one of the new category products, Vuse. This study looks at both scenarios, the Vuse user and the cigarette user.

“It will provide a snapshot of the differences in biomarkers of potential harm between Vuse consumers compared to cigarette smokers, and from there, we can see if one indicator differs from the other in terms of biomarkers,” he said.

Tan said that in the UK, there are major health regulators and medical associations that have contributed to tobacco harm reduction strategies.

He cited the Public Health England report on e-cigarettes that said vaping was 95 percent safer than smoking combustible cigarettes.

Based on their clinical findings on the website, PMI also has found that using their tobacco heating system, such as IQOS, positively impacts smokers’ health.

“In the case of our tobacco heating system, we have conducted 12 preclinical studies and 10 clinical studies,” said Suarez. “The results show that there is no combustion and also the levels of toxicants are reduced, on average, by more than 90 percent compared with the smoke of a reference cigarette.”

He added: “Moreover, our clinical studies show that when adult smokers switch to the product, they reduce their exposure to toxicants compared to those that continue smoking and the level of reduction is similar – though not the same – as the reduction observed when quitting smoking.”

Despite the clinical findings of PMI and BAT’s research, Karem Harb, general practitioner and medical director at Dubai-based Hortman Clinics, said there are not enough studies on electronic cigarettes or coil-heated tobacco products.

Smokers do admit they feel better on e-cigarettes. That is because they contain less or zero amounts of tar. On the other hand, many e-cigarette smokers have reported an increase in palpitations and anxiety.

Karem Harb, Medical director and general practitioner at Dubai-basedHortman Clinics.

In his opinion, the new trend in e-cigarettes or similar products is that they have a higher concentration of nicotine when compared to regular cigarettes.

“Smokers do admit they feel better on e-cigarettes and breathe better, as well as sleep better, etc. and that is because they contain less or zero amounts of tar,” Harb said.

“On the other hand, many e-cigarette smokers have reported an increase in palpitations and anxiety, which could be directly related to the higher levels of nicotine compared to regular cigarettes,” Harb added.

Ways to accelerate alternatives

Furthermore, BAT proposes five ways to accelerate THR, Tan said.

The company encourages data collection to better understand the potential impact of electronic nicotine delivery products in the region.

He said this approach would improve consumer choice, quality and trust in the products.

Developing an appropriate regulatory system would be the second step in which science-based relative risks are differentiated and used to guide policies such as taxation, Tan added.

He explained that another way to ensure products can adapt to changing consumer preferences is to allow them to innovate.

Communication is essential for regulators and consumers to make informed decisions and support transparent industry-academic research collaboration to eliminate biased research.

Responsible marketing freedom, he concluded, enables consumers to move from combustible to non-combustible products faster. He said that BAT is committed to helping and working with local regulators to implement THR strategies.

According to PMI’s website, the FDA has approved marketing modified risk versions of IQOS Platform 1 devices and consumables as modified risk tobacco products.

PMI’s smoke-free products were available in 71 countries as of March 31, 2022.

It is stated on the website that the FDA found it appropriate to modify exposure orders for these products to promote public health.

As Harb concluded, although many claim to have quit cigarettes and taken up what would seem to be a healthier substitute, there is still a lot to learn about the new industry trends and the new age-group populations adopting the habit. “No smoking is always the better alternative,” he said.


Saudi Arabia’s date sector sees 13.7% export growth in Q1, 2024

Updated 13 sec ago
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Saudi Arabia’s date sector sees 13.7% export growth in Q1, 2024

RIYADH: Saudi Arabia’s palm and dates sector is experiencing significant growth, with exports increasing by 13.7 percent in the first quarter of 2024 compared to the same period last year. 

This food division is regarded as a significant contributor to diversifying income sources and boosting the gross domestic product, as the Kingdom has ambitions to establish its dates as the premier choice globally.  

The National Center for Palm and Dates has recently revealed a significant increase in value across various countries during the period, reaching SR644 million ($171.7 million), compared to SR566 million in the first quarter of 2023. 

In 2023, the value reported by NCPD increased by 14 percent, reaching SR1.462 billion, compared to SR1.280 billion in 2022. By the end of 2023, the number of countries importing Saudi dates had reached 119.  

In an interview with Arab News in March, Mohammed Al-Nuwairan, CEO of NCPD, emphasized that Saudi Arabia’s export portfolio extends beyond dates, encompassing derivatives like molasses, pastes, and others. This diversification enhances the sector’s export presence beyond the Kingdom’s borders.  

“East Asian countries are receiving attention from Saudi exports of dates, especially to Singapore, situated in the heart of countries targeted for exporting dates and their derivatives, such as Indonesia, Malaysia, and also China in particular. What supports this is the high demand for Saudi dates, which possess high nutritional values and production quality,” he said at that time. 

The total value of date and date by-product exports has surged by 152.5 percent since 2016, rising from SR579 million in 2016 to SR1.462 billion in 2023, marking a compound annual growth rate of 12.3 percent.  

According to the Saudi Press Agency, date exports to several countries, including Austria, Norway, and Argentina, as well as Brazil, Portugal, Germany and Canada, exceeded 100 percent. 

According to the Saudi Press Agency, date exports to several countries, including Austria, Norway, and Argentina, as well as Brazil, Portugal, Germany, and Canada, exceeded 100 percent.  

Additionally, the value of Saudi date exports increased to Morocco by 69 percent, Indonesia by 61 percent, and South Korea by 41 percent. Exports to the UK, the US, and Malaysia rose by 33 percent, 29 percent, and 16 percent, respectively.  


Saudi NHC teams up with Chinese firm to construct 20k residential units

Updated 39 min 49 sec ago
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Saudi NHC teams up with Chinese firm to construct 20k residential units

RIYADH: Residential supply is set to improve as the Saudi National Housing Co. and China Machinery Engineering Corp. signed a deal to build 20,000 units in the Kingdom. 

In a recent agreement signed in Beijing, the two companies joined forces to address housing needs more effectively by constructing apartments in suburban and residential areas within the Kingdom, directly benefiting individuals and families, the Saudi Press Agency reported. 

The deal was signed during the official visit of the Minister of Municipal and Rural Affairs and Housing and the Chairman of the Housing Program Committee, Majid Al-Hogail, to China as part of the broader efforts to contribute to achieving the targets of the Housing Program — one of the Kingdom’s Vision 2030 programs.  

This initiative aims to partner with leading global companies and attract international investments in the real estate sector. 

At the signing ceremony, CEO Mohammed Al-Buty represented NHC. 

The company emphasized that this agreement complements its qualitative projects with major global construction companies, SPA reported.  

It added that this initiative would be implemented in various areas within the suburbs and urban communities under NHC, distinguished by integrated facilities and services, including health, education, commercial, and public services. 

NHC, one of the largest real estate firms in the Middle East, aims to develop housing communities and improve living spaces in the Kingdom by creating nine integrated residential suburbs and delivering 300,000 units by the end of 2025.  

The company plans to implement integrated urban projects according to the highest standards at affordable prices, as well as enhance the sustainability of residential projects in various regions in Saudi Arabia.  

This comes as the Kingdom aims to elevate services for citizens and unify all efforts across sectors to achieve the targets of the Housing Program in line with the nation’s Vision 2030. This is part of its efforts to increase the homeownership rate for Saudi families to 70 percent. 

Last week, NHC signed a deal with China’s CITIC Construction Group to establish an industrial city and logistic zones for building materials. The undertaking will comprise 12 factories aimed at securing supply chains for the Saudi firm’s housing projects. 

In a statement, the NHC said the agreement with the Chinese construction group is part of its efforts to secure supply chains for its housing initiatives and ensure their timely completion and high quality. 

The Saudi company said the deal entails the construction of 12 factories specializing in building materials, harnessing Chinese expertise, and an uplift in business standards by local factories.  

It added that the agreement also aims to draw top-tier service providers across various company sectors, its subsidiaries, and other projects. 


GCC prioritizes economic diversification for sustainable growth, says official 

Updated 59 min 30 sec ago
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GCC prioritizes economic diversification for sustainable growth, says official 

RIYADH: The Gulf Cooperation Council aims to reduce reliance on oil revenues by implementing a comprehensive vision for economic diversification, as emphasized by its Secretary-General, Jasem Al-Budaiwi. 

During the Gulf Creatives Conference, organized by the Diwan at Harvard University in Cambridge, Massachusetts, Al-Budaiwi outlined a vision that embraces diverse sectoral reforms. These initiatives are aimed at strengthening economic resilience and attracting foreign investments, the Saudi Press Agency reported. 

He noted GCC countries have positioned themselves as competitive digital hubs on the global map, supported by their favorable geographic location and young population. 

“The strategic location, coupled with robust infrastructure, paves the way for the council member states to attract international partnerships that support their long-term development goals,” Al-Budaiwi said. 

He added: “This dynamic approach is vital for sustaining economic growth and ensuring the resilience of Gulf economies in the face of global economic fluctuations and regional challenges.” 

Additionally, Al-Budaiwi emphasized the numbers and data supporting these plans and showcased the advancements made by GCC nations, including the establishment of the Customs Union, the GCC Common Market, and the Unified Economic Agreement. He cited Saudi Arabia’s NEOM project as an example of urban development initiatives within GCC nations. 

He explained that smart cities are designed to reduce waste, enhance energy efficiency, and streamline urban management by leveraging artificial intelligence and the Internet of Things. 

He continued by stating that this further underscores the GCC nations’ commitment to technologically advanced and environmentally friendly urban design, as well as the increased emphasis on cybersecurity to mitigate growing risks and maintain confidence in the digital economy. 

Moreover, Al-Budaiwi emphasized the transition from oil-dependent to diversified economies and expressed satisfaction with the outstanding economic and integration achievements of the GCC countries. 

In February, he held a series of meetings in Riyadh with foreign ambassadors to Saudi Arabia. 

Al-Budaiwi met with the South Korean Ambassador to Saudi Arabia, Choi Byung Hyuk, at the general secretariat headquarters in Riyadh. 

During the meeting, the secretary-general discussed the developments in the free trade agreement between the GCC countries and South Korea, which was signed in December 2023. 

Both sides expressed their desire to enhance cooperation between nations and increase focus on mutual interests such as education, health, investment, and pharmaceuticals. 

The meeting also reviewed relations between the GCC and South Korea, emphasizing the importance of enhancing strategic dialogue through the areas of cooperation outlined in the joint action plan.


Expat remittances from Saudi Arabia hit $3.2bn in March

Updated 43 min 49 sec ago
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Expat remittances from Saudi Arabia hit $3.2bn in March

  • The upswing is the highest since June 2022, SAMA data shows 

RIYADH: Remittances by expatriates in Saudi Arabia grew 28 percent in March as compared to the preceding month to reach SR11.96 billion ($3.2 billion), the highest since 2022, official data showed.

The launching of new development projects in the Kingdom has led to an increase in the expatriate population, as they actively contribute to the growth of business activities. This, in turn, may have influenced their remittance patterns.

This growth in remittances is also exemplified by the Regional Headquarters Program, which has successfully attracted over 200 companies from across the globe to obtain licenses to set up their regional bases in Saudi Arabia.

These entities are driven by the prospect of securing lucrative government contracts. Additionally, the ongoing structural reforms to enhance foreign direct investment have further stimulated business growth in the Kingdom. 

Alongside regulatory reform, Saudi Arabia has undergone modernization in its legal governance and enforcement practices such as digitization of employment contracts, virtual court hearings, and provision of online government services. These initiatives are integral components of a broader set of reforms aimed at positioning the Kingdom as one of the leading nations in terms of ease of doing business.

However, on a quarterly basis, there was a 0.34 percent decrease in expat remittances compared to the same period last year. This trend can be attributed to Saudi Arabia’s evolving economic landscape, particularly the implementation of financial sector reforms, which are increasingly enticing residents to invest a portion of their earnings within the Kingdom.

In February of this year, a report by Jadwa Investment noted that workers’ remittances were unexpectedly low despite the influx of expatriates.

This phenomenon according to their report may suggest that some expatriates opted to capitalize on the high savings rates in the Kingdom instead of remitting funds home.

The Saudi Central Bank, also known as SAMA, has raised key policy rates multiple times in 2022 and 2023, given that the Saudi currency is pegged to the dollar. This move aligns with the actions taken by the US Federal Reserve, which has been gradually increasing interest rates as part of its strategy to address inflationary pressures.

Conversely, remittances from Saudis saw a 9 percent monthly increase, totaling SR5.11 billion, yet experienced a quarterly decline of 0.53 percent.

The occurrence of Ramadan in March this year likely influenced the increase in Saudi remittances for this month. During this holy month, individuals often engage in increased charity, support their families, and fulfill religious obligations, such as zakat.


Egypt aims to attract Apple, pushing to solidify position as manufacturing hub

Updated 12 May 2024
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Egypt aims to attract Apple, pushing to solidify position as manufacturing hub

RIYADH: Egypt is making strides to become a manufacturing hub, with four of the top five mobile phone manufacturers — Samsung, Vivo, Oppo, and Xiaomi — agreeing to establish factories in the country.  

Prime Minister Mostafa Madbouly emphasized these strategic initiatives during a tour of the 10th of Ramadan, the country’s largest industrial zone. The aim is to attract the fifth tech giant, Apple, to further bolster Egypt’s position in regional manufacturing. 

Madbouly’s visit included several factories, including one specializing in producing sanitary devices at the highest standards for various international brands.  

This stopover underscores the Egyptian government’s commitment, which President Abdel El-Sisi reinforced, to expanding and strengthening the industrial sector. 

The prime minister noted the government’s efforts to attract significant global companies to Egypt, aiming to create high local value-added goods and foster a conducive environment for foreign investment. 

He emphasized the state’s strategy to enhance communication with international investors and manufacturers, offering the necessary support to help them realize their expansion plans within the Egyptian market, particularly those targeting export activities. 

This aggressive push to diversify Egypt’s industrial base and enhance its export potential is a key component of the nation’s broader economic strategy, aiming to secure a more prominent position in the global financial landscape.  

The government is actively pursuing an increase in its investment attraction status as it aims to lower its import bill to reduce liquidity and foreign reserve pressures. 

Earlier in May, global ratings agency Fitch revised Egypt’s outlook to positive from stable. 

The agency affirmed Egypt’s rating at “B-,” citing reduced external financing risks and stronger foreign direct investment. 

Since the country announced the International Monetary Fund loan program, foreign investors have poured billions of dollars into Egyptian treasury bills. After the investment in the country’s foreign portfolio and the support from the UAE, Egypt’s net foreign assets deficit shrank by $17.8 billion in March.  

Fitch said that initial steps to contain off-budget spending should help to reduce public debt sustainability risks.  

The country straddles North Africa and West Asia and has been grappling with an ongoing economic crisis linked to persistent foreign currency shortages. In the fourth quarter of 2023, its foreign debt climbed by $3.5 billion to $168.0 billion.  

Meanwhile, Moody’s also revised its outlook on Egypt to “positive” in early March while affirming its ratings due to the high government debt ratio and weaker debt affordability compared to its peers.