Markets
The UAE imported US$547M of unmanufactured tobacco in 2023, and India was its largest origin in 2024
The UAE is a trading and re-export hub, and its buyers are importers, licensed manufacturers and traders. This page covers the import and re-export flows, the excise position and the routing in use since the Strait of Hormuz disruption.
At a glance
The UAE in numbers
| Imports of unmanufactured tobacco (HS 2401) | US$547.4M in 2023, from US$430.1M in 2022 and US$281.3M in 2020. UAE-reported. |
|---|---|
| India | The largest single origin in 2024, at US$204.7M by UAE customs data. |
| Re-exports (HS 2401) | US$113.5M in 2023. Iran, Russia, Iraq and Vietnam were among the largest 2024 destinations. |
| Excise | Reported at 100% on all of Chapter 24, with exports exempt and qualifying Designated Zones treated as outside the State. |
| Shipping now | Discharge at Fujairah and Khor Fakkan with overland trucking has been reported since the Strait of Hormuz disruption began on 28 February 2026. |
Imports and origins
Where UAE tobacco imports come from
India led the 2024 origins by value, ahead of Brazil, Zimbabwe and Tanzania.
| Origin | 2024 value, US$M |
|---|---|
| India | 204.7 |
| Brazil | 85.9 |
| Zimbabwe | 79.5 |
| Tanzania | 54.6 |
| Malawi | 20.6 |
Values are UAE-reported imports of HS 2401 in 2024, for selected origins. Sources differ between UAE-reported imports and India-reported exports.
Who buys
Licensed manufacturers, traders and re-exporters
Licensed manufacturers
Tobacco manufacture is licensed, including in free zones. Under Cabinet Resolution 98/2023 a manufacturer accepts tobacco consignments only with documents from competent authorities and keeps records of the tobacco it stores and where it came from.
Traders and re-exporters
Many of these buyers serve several destinations and need a specification that every downstream buyer can check.
Re-export
Where UAE tobacco goes next
UAE exports of HS 2401 were US$113.5M in 2023, against US$48.8M in 2022 and US$39.9M in 2021.
| Destination | 2024 value, US$M |
|---|---|
| Iran | 51.0 |
| Russia | 29.6 |
| Iraq | 21.7 |
| Vietnam | 21.2 |
The table shows selected destinations only. Re-export flows are lumpy, with few buyers behind each. If your cargo will move on, name the final destination when you enquire, since banks screen it.
Excise and licensing
What the UAE rules say
| Point | Position |
|---|---|
| Excise rate and scope | As reported, 100% on tobacco and tobacco products, defined as all items in Chapter 24 of the GCC Common Customs Tariff, with no raw-leaf carve-out (Cabinet Decision 197/2025, Articles 3 and 5). |
| Exports | Exported excise goods are exempt (Federal Decree-Law 7/2017, Article 12). |
| Designated Zones | A free zone that meets the conditions is treated as outside the State for excise. Tax falls due on release if it has not been paid (Federal Decree-Law 7/2017). |
| Manufacture | Licensed, including in free zones, with record-keeping on stored tobacco and its origin (Cabinet Resolution 98/2023). |
Your importer or UAE customs broker confirms the position, including customs treatment, for your route and zone.
Shipping
Routing since the Hormuz disruption
The Strait of Hormuz has been disrupted since 28 February 2026. As reported, carriers have discharged at Fujairah and Khor Fakkan, outside the strait, and moved cargo overland. Jebel Ali terminal volumes were sharply lower in the second quarter of 2026: 374,000 TEU against 3.8 million a year earlier, as reported.
Confirm the discharge port and routing before you book. The carrier's terms govern freight and surcharges. For shipping terms, read FOB, CIF and CFR explained.
What we supply
Specifications a trader can pass down the chain
Indileaf is a Gujarat-based exporter serving manufacturers, leaf merchants and extractors worldwide, and we sell to business buyers only. Tobacco refuse goes into reconstituted sheet, blending fillers and nicotine extraction.
Our high-nicotine scrap is a product in its own right: sun-cured Nicotiana tabacum from Gujarat, sold in four nicotine blocks: Standard 1.0 to 3.5%, Medium 3.6 to 4.0%, High 4.1 to 4.5% and Premium 4.6 to 5.5%. Moisture is not above 12% at loading. The crop is 2026, processed in our own plant in Gujarat.
Every sample has its specification sheet, and our own laboratory screens each lot before dispatch, with a certificate of analysis per batch and a sealed retained sample kept per lot. Third-party laboratory certificates are available. The products page lists the full ranges and the grade finder shortlists.
Questions
What UAE buyers ask
How large is UAE demand for unmanufactured tobacco?
UAE-reported imports of HS 2401 were US$547.4M in 2023, up from US$281.3M in 2020. India was the largest single origin in 2024 at US$204.7M.
Is raw tobacco subject to UAE excise?
As reported, Cabinet Decision 197/2025 sets excise at 100% on tobacco and tobacco products, defined as all items in Chapter 24 of the GCC Common Customs Tariff, with no carve-out for raw leaf. Exported goods are exempt, and a free zone that qualifies as a Designated Zone is treated as outside the State for excise (Federal Decree-Law 7/2017).
Does the UAE re-export unmanufactured tobacco?
Yes. UAE exports of HS 2401 were US$113.5M in 2023. In 2024 the largest destinations included Iran (US$51.0M), Russia (US$29.6M), Iraq (US$21.7M) and Vietnam (US$21.2M). Banks screen the final destination, so name it when you enquire.
Which port should the cargo go to now?
Since the disruption of the Strait of Hormuz began on 28 February 2026, carriers have, as reported, discharged at Fujairah and Khor Fakkan and moved cargo overland. Jebel Ali volumes were sharply lower in the second quarter of 2026.
What does a UAE buyer need before importing?
A licence whose activity covers tobacco. Licensed manufacturers also accept tobacco consignments only with documents from the competent authorities and keep records of stored tobacco and its origin (Cabinet Resolution 98/2023).
Next steps
Documents and shipping in more detail
Export documents
The set prepared for each shipment.
Ordering and shipping
Packing and each step from enquiry to loading.
All destinations: Markets overview.
Sources and years: UAE-reported imports and exports of HS 2401 via UN Comtrade, republished by Trendeconomy (2020 to 2023 totals) and Trading Economics (2024 values by partner country), reviewed October 2026; India-reported series differ. Cabinet Decision 197/2025 on excise goods and rates (December 2025); Federal Decree-Law 7/2017 on excise tax; Cabinet Resolution 98/2023 on licensing tobacco cultivation and manufacture. Hormuz routing: press and carrier reporting, February to September 2026; Jebel Ali volumes: DP World second-quarter 2026 results as reported by The Logistic News. Reviewed October 2026.
Send the product, end market and port
Email contact@indileaf.co or ring +91 80001 50037 and tell us the grade, end market and discharge port.
