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.”

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.

The Sultanate of Oman announced its General State Budget for 2026, with total estimated revenues projected at OMR 11.447 bn, based on an average oil price of $60 per barrel. This represents a 2.4 per cent increase over approved revenues for 2025.

Total public expenditure for 2026 is estimated at approximately OMR11.977 bn, up 1.5 per cent from the previous year. The estimated budget deficit stands at OMR530m, a 14.5 per cent decline from 2025, accounting for 4.6 per cent of total revenues and 1.3 per cent of GDP, according to an Oman News Agency report.

Read more-How Oman’s new digital banking regulations are reshaping the financial sector

The budget was unveiled during a press conference at the Ministry of Finance, detailing the financial framework for the Eleventh Five-Year Development Plan (2026–2030) alongside preliminary results for 2025.

Sultan Salim Al Habsi, Minister of Finance, emphasised Oman’s ongoing economic growth, noting that the projected real GDP at constant prices is expected to reach OMR39.2bn by the end of 2025, up from OMR34.5bn in 2021, a 14 per cent increase during the Tenth Five-Year Plan.

Inflation remained stable, with an average rate of 0.9 per cent through November 2025, supported by government policies on petroleum, electricity, water subsidies, and essential commodities.

Investment and market performance

Minister Al-Habsi highlighted the rising confidence in Oman’s business environment, which has driven Foreign Direct Investment (FDI) to OMR30.3bn by Q3 2025, a 71 per cent increase since 2021.

The Muscat Stock Exchange also showed strong performance, with market capitalisation rising 60 per cent since 2020 to OMR32.2bn.

Trading values surged by over 1013 per cent compared to 2020, positioning Oman among the GCC’s top-performing markets in 2025 and ranking fourth globally.

The Oman Investment Authority contributed significantly to economic growth, with assets reaching OMR21bn by the end of 2025.

Investments spanned 50 countries, promoting knowledge transfer, human resource development, and revenue contributions of over OMR4.4bn during the Tenth Five-Year Plan.

The Future Fund Oman approved 164 projects worth OMR462m by 2025, including OMR104m in investments for startups and SMEs, supporting private sector growth and innovation.

Fiscal discipline and non-oil growth

Fiscal improvements have been achieved due to rising global oil prices and government measures to enhance fiscal sustainability. The fiscal breakeven oil price fell from over $100 per barrel pre-Tenth Plan to $68 per barrel in 2025. Non-oil revenues also grew by 41 per cent, from OMR2.1bn in 2020 to OMR3.5bn by the end of 2025.

Additional revenues from the Tenth Five-Year Plan, totaling OMR11.291bn, were allocated strategically between social spending (OMR2.687bn), economic expenditure (OMR3.837bn), and debt reduction (OMR4.767bn). Governorate development projects received OMR983m, up from OMR285m in 2021.

Social development and infrastructure investment

Social spending remains a priority. The 2026 budget allocates OMR614m for the social protection system, benefiting over 1.6 m citizens.

Education will receive 4,000 new teachers, while the Ministry of Health will hire 3,706 new staff. A total of 113 new schools and 11 hospitals, along with 19 health centers, are under construction, with many expected to be completed by 2026–2027.

Infrastructure development continues with 2,525 km of roads planned at an estimated OMR2.7bn. Housing initiatives, including the “Iskan” program, received OMR545 m during the Tenth Plan, with a reinforced loan portfolio and reduced waiting times.

The government also set aside OMR400m annually for Economic Transformation Projects, increasing total allocations for strategic projects to OMR1.3bn in the Eleventh Five-Year Development Plan.

2026 budget allocation highlights

• Total revenues: OMR11.447bn (net oil: OMR5.752bn, net gas: OMR1.961bn, non-oil: OMR3.734bn)

• Total expenditure: OMR11.977bn

  • Current expenditure: OMR8.771bn (73 per cent of total)

  • Defense & security: OMR3.160bn

  • Civil ministries: OMR4.700bn

  • Public debt service: OMR911m

• Contributions and other expenditures: OMR1.906bn (16 per cent of total)

• Social and essential sectors: OMR5.2bn (44 per cent of total)

Education receives 40 per cent of the social and essential sector allocation, followed by Social Security and Welfare (26 per cent), Health (25 per cent), and Housing (9 per cent).

Higher education initiatives target 11,425 new scholarship students, with ongoing upgrades to Sultan Qaboos University and the University of Technology and Applied Sciences.

Debt and employment measures

The government plans to finance 2026 needs through domestic borrowing of OMR902m, external borrowing of OMR990m, and drawing OMR400m from reserves. Public debt is projected to reach OMR14.6bn, representing 36 per cent of GDP.

Additionally, OMR100m annually has been allocated for employment programs under the Eleventh Five-Year Plan, including targeted procurement initiatives to reduce unemployment and promote job stability.

Preliminary 2025 financial results

Abdullah Salim Al Harthy, Undersecretary of the Ministry of Finance, reported a 5 per cent increase in general revenues for 2025, totalling OMR11.760bn, driven by a 10 per cent increase in net oil revenues (OMR6.403bn) and a 0.4 per cent increase in net gas revenues (OMR1.784bn).

Total public expenditure rose 4 per cent to OMR12.240bn, with developmental projects contributing to an expected total investment expenditure of OMR1.400bn. Subsidies and social spending increased to support petroleum products, electricity, water, and low-income families. The 2025 financial deficit decreased 23 per cent to OMR 480 m, aided by favorable oil prices.

NVIDIA unveiled a new family of open-source artificial intelligence models, simulation tools and datasets aimed at accelerating the development of safer, reasoning-based autonomous vehicles, as competition intensifies to deploy higher levels of self-driving technology.

Announced at the CES technology show, the Alpamayo family is designed to address so-called “long-tail” driving scenarios, rare and complex situations that remain among the biggest obstacles to large-scale autonomous vehicle deployment.

Autonomous systems have traditionally relied on separate perception and planning models, a structure that can struggle when vehicles encounter unfamiliar conditions.

NVIDIA said Alpamayo introduces reasoning-based vision language action (VLA) models that allow systems to analyse cause and effect step by step, improving decision-making, safety and explainability.

The AI models could help autonomous vehicles handle complex environments

“The ChatGPT moment for physical AI is here, when machines begin to understand, reason and act in the real world,” NVIDIA founder and CEO Jensen Huang said in a statement. He said the technology could help autonomous vehicles handle complex environments and explain their driving decisions, a key factor in building trust and scaling deployment.

The Alpamayo family combines three elements: open AI models, simulation frameworks and large-scale datasets.

Rather than operating directly inside vehicles, the models are designed to act as “teacher” systems, which developers can fine-tune or distil into smaller models suitable for real-world use.

NVIDIA said it is releasing Alpamayo 1, a 10-billion-parameter chain-of-thought reasoning model for autonomous driving research, alongside AlpaSim, an open-source simulation platform for closed-loop testing.

The company is also making available physical AI open datasets comprising more than 1,700 hours of driving data collected across diverse geographies and conditions.

The company said the tools would enable a self-reinforcing development loop, allowing developers to train, test and refine reasoning-based autonomous driving systems more efficiently.

Automotive and mobility companies to explore new tech from NVIDIA

Automotive and mobility companies, including Jaguar Land Rover, Lucid and Uber, as well as research groups such as Berkeley DeepDrive, are exploring the Alpamayo platform, NVIDIA said, as they work toward level 4 autonomy, where vehicles can operate without human intervention in defined conditions.

Against a backdrop of slower progress and rising scrutiny in the autonomous vehicle sector, the company said open development and improved reasoning capabilities could help the industry overcome technical barriers and advance safer deployment at scale.

The UAE has taken a fresh step in strengthening its urban infrastructure and transport ecosystem, with new projects launched in Dubai and Ajman underscoring the country’s focus on sustainability, mobility efficiency, and long-term economic growth.

Recent developments announced by Dubai’s Roads and Transport Authority (RTA) and the Ajman government highlight coordinated efforts to enhance road networks, optimise land use, and support the UAE’s vision of becoming a global hub for living, tourism, and business.

Read more-Dubai’s new road project: 2,300 metres of bridges, major lane expansions planned

Together, the initiatives reflect a broader strategy to modernise infrastructure while addressing operational challenges such as congestion, unregulated parking, and growing urban demand, key priorities as the country continues to attract residents, tourists, and investors.

RTA launches Al Ruwayyah Yard project in Dubai

As part of its efforts to enhance urban organisation, support sustainability plans, and improve quality of life, Dubai’s Roads and Transport Authority (RTA) has announced the opening of Al Ruwayyah Yard project, on January 5.

The initiative supports the preservation of Dubai’s urban landscape and tourism appeal by streamlining parking and providing organised, dedicated parking facilities for caravans, boats (including Jet Skis), trailers, and food vending vehicles, a WAM report said.

Providing further details, Abdulla Yousef Al Ali, CEO of Corporate Administrative Support Services Sector at RTA, said that the project aims to provide integrated and secure parking solutions for caravans, boats, trailers, and food vending vehicles, in line with Dubai’s standing as a leading global destination for living, tourism, and business.

Al Ali explained, “This initiative represents a key pillar in curbing unregulated practices and maintaining smooth traffic flow. The yard will provide 335 dedicated parking spaces, equipped with state-of-the-art infrastructure, directly contributing to safeguarding the road right-of-way, enhancing traffic safety, and enhancing the city’s overall visual appeal.”

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He added that the Al Ruwayyah Yard project forms part of a wider series of initiatives supporting sustainable urban development and the optimal utilisation of RTA assets, including land plots across various areas of the emirate. The project also addresses challenges arising from random and unregulated parking within road right-of-way and residential districts, supporting RTA’s ambition to make Dubai one of the world’s best cities to live and work in.

Al Ali noted that studies are underway to expand the service to other locations across Dubai to ensure wider coverage and accessibility for individuals and companies across the emirate. He concluded that the project is being implemented and managed in collaboration with a specialised company in Dubai, reflecting RTA’s commitment to public-private partnerships and alignment with the Dubai Economic Agenda (D33), supporting sustainable economic growth and advanced service delivery.

Ajman opens Al Talla Road development project

In parallel with Dubai’s transport initiatives, Ajman has inaugurated the Al Talla Road development project on January 4, as part of the initiatives of the UAE President Sheikh Mohamed bin Zayed Al Nahyan, and under the oversight of the Presidential Initiatives Committee.

Spanning 3.2 kilometres, the project includes an 800-metre bridge on Sheikh Mohamed bin Zayed Road and the 1,100-metre Al Hamidiyah Bridge on Sheikh Zayed Road, in addition to two newly opened under-bridge intersections. The development forms part of a comprehensive plan to upgrade infrastructure and enhance the emirate’s road network.

The project is expected to reduce travel time to targeted areas by up to 60 per cent, significantly improving connectivity to residential districts such as Mohamed bin Zayed City, Al Hamidiyah, and Al Raqaib. It also enhances access to key facilities including Sheikh Mohamed bin Zayed Hospital, currently under construction, and the Zayed Educational Complex.

Works under the project included the construction of an integrated stormwater drainage network, alongside new traffic signal and lighting systems. These upgrades contribute to improved road safety, smoother traffic flow, and greater infrastructure readiness to support Ajman’s urban expansion and long-term development goals.

The Middle East and North Africa region is emerging as one of the fastest-growing markets globally for consumer packaged goods, driven by strong volume growth in Saudi Arabia and the UAE, according to a new report by Bain & Company.

Bain’s Middle East Consumer Products Report 2025 stated that the region’s fast-moving consumer goods market exceeded $450bn in sales in 2024 and is projected to reach as much as $650bn by 2030, implying annual growth of about 5 per cent, outpacing global averages.

The report found that the UAE recorded around 6 per cent volume growth in consumer products, well above the global average of 1.7 per cent, while Saudi Arabia posted approximately 4 per cent growth, supported by resilient consumer demand and favourable demographic and economic fundamentals.

MENA is a growth area for consumer goods

“CPG leaders should view MENA as a true growth arena,” said Faisal Sheikh, senior partner at Bain & Company. “The opportunity is real, but the bar is rising, consumers are more time-starved, more intentional, and increasingly focused on trust and relevance.”

The research is based on a survey of 3,500 consumers across Saudi Arabia, the UAE, Egypt and Iraq, alongside interviews with 20 regional consumer goods executives and Bain’s market analysis.

Despite inflationary pressures and shifting consumption patterns, Bain said consumer sentiment in the region remains resilient, with respondents scoring sentiment at 6 out of 10. However, purchasing decisions are becoming more selective, with brands increasingly judged on value, convenience and alignment with consumer values.

The report found that convenience has become a baseline expectation, with 37 per cent of consumers saying they lack sufficient time for daily essentials.

More than half of respondents said they had boycotted brands due to misalignment with their values, elevating trust to a key decision factor alongside price and quality.

Digital channels are also reshaping growth. Bain estimates e-commerce accounts for 12 to 14 per cent of retail sales in the UAE and could rise to 20 to 25 per cent by 2030, capturing about 60 per cent of incremental retail growth.

“MENA’s growth is being shaped by channel evolution and rising expectations on convenience,” said Federico Piro, partner at Bain & Company. “Companies that adapt route-to-market and execute with discipline can capture growth while strengthening brand resilience.”

The report said consumer goods companies in the region face increasing competition from local and regional players, regulatory complexity and rising cost pressures, even as global CPG growth remains muted.

Read: What UAE retailers can learn from China’s evolving luxury market

Growth strategy

To sustain growth, Bain outlined three priorities: rethinking growth strategies to expand profit pools, simplifying operations to fund reinvestment, and scaling digital and artificial intelligence capabilities. While 91 per cent of global executives see generative AI as strategically important, only 6 per cent have a clear implementation roadmap, the report said.

“The next chapter in MENA will reward companies that turn complexity into advantage,” said Karim Chehade, associate partner at Bain & Company.