The Middle East has always been a smoker, and Electronic cigarette have also had an impact, but to a lesser extent than other countries. During my stay in Israel, I visited several e-cigarette stores in Tel Aviv and Jerusalem, which have some direct similarities and significant differences with the United States.

Mendel Silverman worked in the Drop Shop in Jerusalem and has been engaged in this industry for many years. When Silverman moved to Israel from the United States, he began to smoke water cigarettes until he realized how unhealthy shisha was and switched to Electronic cigarette.

"The industry is very strong. Unfortunately, one of the biggest weaknesses is customer service," he admitted, although this was the bane of the Electronic cigarette field from the beginning. We are fortunate because we still have enough room to provide our own [electronic liquid] mixture, which has nicotine levels ranging from 0 to 18 and about a dozen. Despite regulatory agencies increasing the difficulty of sales and taxing it, [nicotine] salt still sells well


Both the Israeli Ministry of Finance and the Ministry of Health plan to levy the same tax rate on Electronic cigarette as cigarettes. The Ministry of Health insisted that Electronic cigarette were as dangerous as smoking, so it initially sought higher taxes. According to Israeli Hayom, the chairman of the finance committee, Alex Kushnir, "reduced the conversion formula by 30% compared to what the Ministry of Health wanted.

The tax amount is 21 ILS per millimeter (US $5.75), which is equivalent to 270% of the wholesale cost, plus US $4.94 per milliliter of electronic cigarette oil, which is the second highest electronic cigarette oil tax rate in the world.


Electronic cigarette and electronic liquids are regulated by the Tobacco Law in Israel, and they are subject to the same restrictions as combustible cigarettes. However, the Israeli Ministry of Health recently discussed the possibility of banning the marketing of Electronic cigarette. The Ministry said that "due to two difficult cases and common phenomena, various options are being examined", referring to the increase in the number of teenagers using Electronic cigarette.

Watching Silverman add ingredients - basic PG and VG - to a bottle of base oil reminds us of the days before the restrictions were imposed in the United States, when Electronic cigarette stores in the United States could do the same.

We don't sell any ready-made flavors, "he shared. "But we can add Menthol, spices and nicotine to meet the needs of (consumers), and we can sell it cheaper than selling complete brand-name bottles."


The boss of Drop Shop started selling products from his car trunk 10 years ago, and this theme seems to be recurring globally. With the growth of demand, he opened his first retail store, which had been thriving until 2019, when the government banned the import of electronic tobacco oil with nicotine content more than 2%. This dealt a devastating blow to the business, so Silverman began creating his own taste, paying taxes on nicotine, and moving into a smaller store.

Like its peers elsewhere, Israeli regulatory authorities believe that imposing higher taxes is to limit sales to minors, but these measures are often driven by a desire for money. Despite market damage, sales for all age groups continue, and taxes have also had an impact on cigarettes, but to varying degrees.

Generally speaking, the excessive taxation of nicotine has triggered an underground movement in Israel, and many Electronic cigarette users make their own tobacco oil. This has also prompted many Electronic cigarette lovers to smoke again. I shared my surprise at seeing many people wearing religious attire smoking. The Jewish world has always been interested in the study of the Torah and Rabbi texts, as it also includes the social aspects of tobacco, "Silverman explained. Students and students gather in places like coffee shops and smoke together. In many cases, they do not have much life outside of studying, so the importance of tobacco is even greater


According to the Israeli Ministry of Health, the smoking rate of people over the age of 21 has been hovering around 20% for many years, including a large proportion of military personnel. We end our conversation by discussing game changers over the past few years: disposable products.


Silverman said that most Israeli consumers are looking for the simplest way of Electronic cigarette, but they are more interested in non refillable versions, although they are more expensive.


In Israel, the bottom line of Electronic cigarette, taxes and smoking is that most things may remain the same until or unless something serious happens.

Crossing the border

The Electronic cigarette scene in Egypt is completely different. For many years, Electronic cigarette products have been illegal and mostly underground, but this situation has changed since Electronic cigarette products were legalized in May 2022. Considering that the industry is still in its early stages, it still has a long way to go.

"The lifting of the ban highlights the gradual attitude of the Egyptian authorities towards Electronic cigarette, and lays the foundation for creating a regulated market full of business opportunities by meeting the demand of consumers of legal age (adults) everywhere for quality products that are easy to obtain. RELX International, a leading enterprise in this field, wrote in a statement last year.

With the decision to legalize Electronic cigarette, Egypt joined the ranks of global and regional markets such as Kuwait, Saudi Arabia and the United Arab Emirates, which also legalized and commercialized the consumption of Electronic cigarette. With the increasing acceptance of Electronic cigarette by regulators around the world, the market is expected to continue to grow steadily in the next few years.

What makes the situation more complicated is that there is a considerable problem of counterfeit products in Egypt, so regulated and ethical Electronic cigarette stores seem to have a huge obligation to help smokers quit smoking.

In Cairo, a city with a population of 22 million, the Electronic cigarette industry is a vast opportunity, but the fact has proved that it is challenging to find an electronic cigarette shop and a real electronic cigarette shop. Google calls them "Electronic cigarette stores", but they are more like small kiosks with limited product choices.

Many Egyptians are familiar with Electronic cigarette and its benefits, but few people really know about Electronic cigarette, even in such a large city. However, Yueke International said that by lifting the ban on Electronic cigarette products, the Egyptian authorities have opened the door to a large number of commercial and investment options.


"Authorized Electronic cigarette products have traditionally been retailed by small and medium-sized enterprises, so this move will support existing enterprises selling such products and attract entrepreneurs who want to set up new retail outlets across the country. It will also attract investment from Electronic cigarette brands who want to open stores and explore the market in the country," the company wrote in a statement.

How many Electronic cigarette smokers will accept is another matter. One quarter of Egyptians smoke, a proportion that has remained stable over the past two decades. Although this number is high, Egypt still ranks bottom among the 20 countries with the highest proportion of smokers.

However, times are changing. In May 2023, Egypt Electronic cigarette Expo will be held in Cairo International Convention Center. According to participants, this event was the first legitimate Electronic cigarette expo in Egypt, attracting many players from North Africa and the Middle East B2B channels. Many people expressed that the performance was very successful.


The Middle East has long been a black hole in the Electronic cigarette industry. Until recently, the government only opened the door for entrepreneurs. However, the success of the Electronic cigarette business remains to be seen.