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How BAT is turning to science to reinvent its business

The company is reshaping its product strategy and research priorities around non-combustible alternatives

Gareth van Zyl
Gareth van Zyl

06 January, 2026

How BAT is turning to science to reinvent its business
Inside BAT's Southampton research and development facility, where scientists are central to the company's long-term transformation. (Image: Supplied)

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Advances in scientific research are changing how one of the world’s most closely monitored consumer industries approaches risk, responsibility and long-term sustainability.

Over the past decade, public health authorities have increasingly focused on the role of combustion in driving the majority of health risks associated with traditional tobacco use.

That distinction has become a reference point in how companies such as British American Tobacco (BAT) reassess product development.

According to the World Health Organisation (WHO), the health risks associated with traditional cigarette use stem primarily from the toxic by-products created during combustion. Cigarette smoke contains more than 7,000 chemicals, many of which are harmful or carcinogenic.

This evidence has shaped international harm-reduction debates, particularly around whether non-combustible alternatives can reduce exposure for adult consumers who would otherwise continue to smoke.

BAT says this scientific understanding underpins its shift towards non-combustible formats, including vapour, heated tobacco and oral nicotine products. Executives describe the strategy as a response to findings emerging from chemistry, toxicology and clinical research.

In several developed markets, policymakers and public health bodies have begun to distinguish between combustible and non-combustible categories when designing regulatory frameworks, while still maintaining controls on marketing, access and youth prevention.

Sweden frequently features in these discussions. Daily smoking prevalence there has fallen to around 5–6 per cent, the lowest level in the European Union, a trend Swedish public health authorities link to a combination of risk-proportionate regulatory oversight, and the uptake of non-combustible alternatives.

Against this backdrop, BAT — founded in 1902 — has set out an ambition to become a predominantly non-combustible business by 2035. The company has stated a target for more than 50 per cent of group revenue to come from non-combustible products by that date.

To examine how that transition is unfolding, Gulf Business visited BAT’s global research and development headquarters in Southampton, UK, where hundreds of scientists and engineers work across product development, regulatory science and long-term research.

“This is not about incremental change,” Dr James Murphy, Director of Research and Science at BAT, told Gulf Business. “Science now sits at the centre of how we operate. We have built a substantial evidence base through chemistry, toxicology and clinical studies, and that work shapes how we engage with regulators and policymakers.”

From regulation to responsibility

BAT operates across more than 180 markets, each with its own regulatory approach.

For Danielle Tower, Group Head of Scientific and Regulatory Affairs, preventing underage use is one of the central concerns as newer product categories expand.

“As we transition towards non-combustible products, we have to ensure they are used as intended, by adult consumers only,” Tower said. “Underage access prevention remains one of our top priorities.”

To support enforcement at the retail level, BAT is turning to technology to improve age-verification processes. One example is the use of artificial intelligence-based facial age estimation tools, such as Yoti, designed to help retailers apply age restrictions more consistently.

“The system determines whether a customer is above or below a defined age threshold,” Tower explained. “A photo is taken and immediately deleted, but from that image the technology can estimate age with a high degree of accuracy.”

Danielle Tower, group head of scientific and regulatory affairs, addressing a media delegation. (Photo: Gulf Business)

Tower said independent validation places the system’s accuracy at 99.3 per cent, giving retailers additional confidence in enforcing age-restricted sales. She also noted that similar tools could apply across other regulated categories, subject to regulatory approval.

Designing safeguards

BAT has extended its focus on responsibility into product design, reflecting a wider shift across regulated industries to embed safeguards directly into systems rather than relying solely on post-market enforcement.

“In our R&D work, we are increasingly exploring products with built-in age-verification and authentication features,” Tower said. “Connectivity, device controls and other technologies all form part of that thinking.”

While incremental, these measures aim to reinforce intended use and reduce misuse over time.

Another challenge that continues to test regulatory systems globally is illicit trade.

It is estimated that around 1 in every 10 cigarettes consumed worldwide comes from illicit channels, according to the WHO.

This illicit trade costs governments across the globe more than $47bn in lost tax revenues annually, the WHO further states.

Tower described it as a clear example of where regulation loses effectiveness if enforcement cannot keep pace.

“Illicit products bypass safety standards, undermine legitimate supply chains and erode trust,” she said. “Manufacturers can only do so much. Policymakers and regulators play a critical role in setting rules that are enforceable and properly resourced.”

BAT’s evolution reflects a broader shift among global legacy businesses redefining their futures, where longevity increasingly depends on aligning business models with scientific evidence, regulatory credibility, and public trust.

This requires sustained investment in research and a shared commitment to reducing harm.

Saudi Arabia issues $11.5bn four-part bond, NDMC says

The world’s top oil exporter has arranged the debt sale to raise funds for general domestic budgetary purposes

Reuters
Reuters

06 January, 2026

Saudi Arabia issues $11.5bn four-part bond, NDMC says
Illustrative image (Getty)

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Saudi Arabia launched a $11.5bn four-part bond, the National Debt Management Center said, in the kingdom’s first issuance of 2026 after being one of last year’s most active emerging-market borrowers.

The kingdom is selling $2.5bn, $2.75bn, $2.75bn and $3.5bn of bonds with tenors of three, five, 10 and 30 years respectively, NDMC said early on Tuesday.

The total order book reached around $31bn, equaling an over-subscription of 2.7 times the issuance, NDMC added in a statement.

The indicative price for a three-year tranche has been set at around 95 basis points over US Treasuries, and for the five-year at around 100 bps over. The 10- and 30-year tranches were initially priced at around 110 bps and 140 bps over US Treasuries, respectively, news outlet International Financing Review said on Monday.

The world’s top oil exporter, more than halfway through an economic transformation plan that calls for hundreds of billions of dollars to reduce its dependence on oil revenue, has arranged the debt sale to raise funds for general domestic budgetary purposes.

The transaction aims to diversify the investor base and meet the kingdom’s financing needs from international debt capital markets efficiently and effectively, NDMC said.

The finance minister last week approved a 2026 borrowing plan of around $57.9bn to cover a projected budget deficit for the 2026 fiscal year of around $44bn and repay about $13.9bn in principal due this year.

Saudi Arabia was among the most active debt issuers in 2025 as issuance across the Middle East and North Africa surged, driven by higher financing needs and strong demand, including from Asian investors.

Citi, Goldman Sachs, HSBC and JPMorgan are acting as joint global coordinators and joint bookrunners for Monday’s bond sale.

Ramadan 2026 likely to begin on this date, predicts UAE astronomy body

The start and end of Ramadan are formally confirmed only after sighting the crescent moon, a process overseen by the UAE’s official moon-sighting committee

Gulf Business
Gulf Business

06 January, 2026

Ramadan 2026 likely to begin on this date, predicts UAE astronomy body
Image: Getty Images/ For illustrative purposes only

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The Emirates Astronomy Society has forecast key dates for the holy month of Ramadan and associated holidays in the UAE in 2026, ahead of official confirmation by the country’s moon-sighting committee.

The astronomy body, which uses lunar calculations to estimate the Islamic calendar, said Ramadan is likely to begin on February 18 or 19, with the festival of Eid al-Fitr expected to fall on March 20, according to The National and other local media, citing comments by Ibrahim Al Jarwan, chairman of the society.

Start of Ramadan will be officially confirmed by the moon-sighting committee

Islamic months are based on the lunar cycle, so the start and end of Ramadan are formally confirmed only after sighting the crescent moon, a process overseen by the UAE’s official moon-sighting committee. Public holiday dates will be announced only after confirmation.

In addition to Ramadan and Eid al-Fitr, the Emirates Astronomy Society forecasted that Eid al-Adha will fall on May 27 and the Islamic New Year will be around June 17, marking the year 1448 in the Islamic calendar.

The forecast dates provide businesses and residents with early guidance for planning, though they remain provisional until confirmed closer to the events by religious authorities, as is customary across Islamic countries.

Paid parking hits Musaffah: What Abu Dhabi’s new move means for commuters

The move marks a significant step in the emirate’s efforts to better regulate the use of public parking spaces and improve overall traffic management in high-demand areas

Gulf Business
Gulf Business

06 January, 2026

Paid parking hits Musaffah: What Abu Dhabi’s new move means for commuters
Image credit: WAM, Instagram

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Q Mobility has announced the activation of the paid parking system in the Musaffah area of Abu Dhabi, under the supervision of the Integrated Transport Centre of the Department of Municipalities and Transport.

The move marks a significant step in the emirate’s efforts to better regulate the use of public parking spaces and improve overall traffic management in high-demand areas.

Read more-New parking zones introduced in Dubai: What you need to know about tariffs

According to a WAM report, the initiative forms part of ongoing efforts to enhance traffic flow in key locations across the emirate, particularly in areas experiencing heavy daily movement from commercial and industrial activity.

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The implementation of the paid parking system is part of an integrated plan aimed at improving the efficiency of public parking management, enhancing the road user experience and supporting commercial activity. The initiative seeks to facilitate the experience of visitors and employees while improving access to industrial and commercial facilities across Musaffah.

By regulating parking usage, the system is designed to address long-standing challenges related to congestion and inefficient use of available parking spaces, while contributing to smoother vehicle movement and better mobility outcomes.

First phase targets key sectors

The first phase of the paid parking system in Musaffah will cover sectors M1, M2, M3, M4 and M24. Plans are in place for future expansion of the system based on traffic requirements and the area’s evolving needs.

Musaffah is one of the emirate’s major industrial and commercial zones, experiencing high traffic density due to diverse economic and service activities, as well as the daily flow of employees and visitors. Increasing demand for public parking has led to difficulties in finding available spaces and instances of random parking, impacting traffic flow and mobility efficiency.

The activation of the paid parking system aims to address these challenges by improving vehicle movement, facilitating access to facilities and enhancing road safety. The first phase will include 4,680 parking spaces, including designated spots for People of Determination to ensure accessibility and convenience for all users.

The system will be implemented starting January 12, 2026, with a fee of Dhs2 per hour for standard parking spaces. Payments can be made through digital channels including the “Darb” and “TAMM” applications, SMS and on-site payment machines.

UAE assumes MENAFATF presidency for 2026

Under the UAE’s presidency, MENAFATF will prioritise enhancing its institutional governance and internal structures, alongside strengthening the efficiency and resources of its secretariat

Gulf Business
Gulf Business

06 January, 2026

UAE assumes MENAFATF presidency for 2026
Image: Getty Images/ For illustrative purposes

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The UAE has assumed the presidency of the Middle East and North Africa Financial Action Task Force (MENAFATF) for 2026, the regional body said on Monday, as it prepares for a new round of assessments aligned with global anti-financial crime standards.

The UAE will be represented by Hamid Saif AlZaabi during its presidency, which comes as MENAFATF readies the launch of the third round of mutual evaluations in line with the Financial Action Task Force’s fifth-round methodology, according to the state news agency, WAM.

MENAFATF said the UAE’s leadership will focus on strengthening member states’ readiness for upcoming evaluations, modernising governance frameworks, deepening international cooperation, and addressing emerging financial crime risks.

The presidency forms part of a coordinated two-year sequence with Bahrain, which will assume leadership of the group in 2027, reflecting an effort to ensure continuity and longer-term capacity building across the region.

“It is a great honour to take on this leadership role,” AlZaabi said, according to WAM.

He added, “The Middle East and North Africa play a vital role in the global financial system today. Our region connects continents, markets and major trade corridors, and what happens here increasingly shapes international financial stability.”

Suliman Al-Jabrin, executive secretary of MENAFATF, said the joint priorities set by the UAE for 2026 and Bahrain for 2027 reflect a forward-looking approach that would strengthen governance and support member states as they prepare for the next round of mutual evaluations.

UAE’s MENAFATF presidency will focus on boosting institutional governance

Under the UAE’s presidency, MENAFATF will prioritise enhancing its institutional governance and internal structures, alongside strengthening the efficiency and resources of its secretariat.

International engagement will also be expanded, including cooperation with FATF, other regional bodies and international observers.

MENAFATF said dedicated workstreams will address risks linked to virtual assets, fintech, artificial intelligence, beneficial ownership transparency and asset recovery, in line with global anti-money laundering and counter-terrorist financing priorities.

The group comprises 21 member states across the Middle East and North Africa, representing a combined gross domestic product estimated at more than $3tn, highlighting the region’s role in global financial stability, WAM reported.

Dubai Design District reveals ambitious plan for expansion

The enhanced plan will introduce canal-front living, cultural quarters, public green spaces and walkable streets, creating an integrated community where residents can live, work and collaborate

Gulf Business
Gulf Business

06 January, 2026

Dubai Design District reveals ambitious plan for expansion
Image: Dubai Media Office

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Meraas has unveiled an expanded masterplan for Dubai Design District (d3), repositioning the area as a creative-led waterfront neighbourhood aimed at attracting global talent and investment.

The enhanced plan will introduce canal-front living, cultural quarters, public green spaces and walkable streets, creating an integrated community where residents can live, work and collaborate.

Located between Downtown Dubai and Dubai Creek, the district spans about 18 million square feet and blends residential, cultural, retail and hospitality elements.

Meraas said the expansion supports Dubai’s ambition to strengthen its position as a global centre for design, innovation and culture, in line with the Dubai Economic Agenda D33.

The move also responds to rising demand for design-focused, well-connected waterfront communities, following strong interest in recent launches at d3 from local and international buyers.

Dubai Design District expanded masterplan: Key highlights

A central feature of the new masterplan is the Design Line, a shaded, pedestrian-first spine linking the district end to end.

The corridor will be activated by public art, creative installations, landscaped green spaces and community areas, reinforcing a walkable, human-centric environment.

The master plan targets LEED Silver community certification and includes measures such as sustainable mobility, energy-efficient design, and improved connectivity, alongside visual integration with Dubai Creek and the Ras Al Khor Wildlife Sanctuary.

Five zones to shape the area

Five distinct zones will shape the neighbourhood, including a canal-front area with contemporary residences and boutique hospitality, an urban core combining homes with curated retail and dining, and a cultural hub centred on performance venues overlooking the d3 Bowl.

Additional zones will focus on wellness-oriented living, featuring parks and sports facilities, as well as a creative quarter with galleries, studios, and loft-style spaces.

“Expanding the Dubai Design District masterplan into a fully integrated creative neighbourhood is a significant step in advancing the ambitions of the Dubai Economic Agenda D33,” Khalid Al Malik, chief executive officer of Dubai Holding Real Estate, said in a statement. He added that the development reinforces Dubai’s appeal as a destination for long-term investment, talent and innovation.

Momentum at d3 has accelerated in recent months, with Meraas pointing to strong demand for new projects, including the sell-out of Atelis, a 280-unit waterfront tower, and the launch of The Edit, a three-tower development offering 557 homes.

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