Saudi Arabia’s Public Investment Fund (PIF) has established a new entity known as Badael, with the purpose of reducing smoking rates within the country. Badael’s primary objective will be to introduce tobacco-free nicotine delivery products to the Saudi market by the end of 2023. The company also has plans for future expansion into regional and international markets.
By 2032, Badael aims to assist approximately one million smokers in Saudi Arabia, which accounts for a quarter of the country’s smoking population, in transitioning away from traditional smoking. This transition is expected to generate significant cost savings, surpassing SR6 billion annually in healthcare expenditure by 2032.
The establishment of Badael by PIF was announced in conjunction with the upcoming World No Tobacco Day, as part of the Saudi government’s measures to combat smoking and promote healthier lifestyles. The company’s core focus is on developing and manufacturing innovative products that offer tobacco-free and less harmful alternatives, in line with Saudi Arabia’s efforts to enhance the well-being of its citizens.
Apart from its health-related objectives, Badael will contribute to PIF’s localization mandate by supporting domestic manufacturing, utilizing local raw materials, facilitating knowledge transfer, and fostering the development of intellectual property within Saudi Arabia
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Reducing Smoking Rates and Supporting Smokers’ Transition
Badael aims to make a significant impact on smoking rates in Saudi Arabia by assisting one million smokers, constituting a quarter of the country’s smoking population, in transitioning away from traditional smoking by 2032. The introduction of tobacco-free nicotine delivery products provides a healthier alternative and aligns with the Saudi government’s goal of promoting healthier lifestyles.
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Badael’s Role in Localization and Economic Development
In addition to its health-related objectives, Badael plays a crucial role in supporting the localization efforts of Saudi Arabia’s Public Investment Fund. The company will contribute to domestic manufacturing, sourcing local raw materials, and facilitating knowledge transfer. Furthermore, Badael’s emphasis on developing intellectual property within the country is expected to foster economic growth and strengthen the local economy
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