Luxury sales fall in Dubai and Abu Dhabi as Iran conflict hits Gulf demand
- 21 hours ago
- 1 min read
RIYADH/DUBAI, April 13 - Sales at Europe's biggest luxury brands have fallen sharply in Dubai and Abu Dhabi as the Iran conflict disrupted what had been one of the industry's fastest-growing markets, in the latest setback for the $400 billion global luxury sector.
Sales at the Mall of the Emirates in Dubai fell 30% to 50% in March from a year earlier, according to a source familiar with the figures, while traffic at the larger Dubai Mall was down by around 50%, suggesting an even steeper drop in sales.
In Abu Dhabi, sales at the Galleria mall were more resilient but still fell by around 10% in March, according to a second industry source.
The Middle East, which accounts for roughly 5% of global luxury consumption, had been one of the sector's few bright spots in recent years, posting double-digit annual revenue growth, said Carole Madjo, head of luxury research at Barclays.
Dubai's image as a hub of glamour and stability has been shaken since the conflict began with U.S. and Israeli strikes on Iran on Feb. 28. Iranian drone attacks have targeted Dubai's airport hub and other infrastructure, while debris from an interception damaged the facade of the Burj Al Arab hotel.
Analysts say recovery is likely to take months even if diplomatic efforts succeed in ending the conflict soon, with broader risks including higher travel and oil costs, inflation and weaker consumer sentiment weighing on demand beyond the Gulf.