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Exclusive: Luxury Brands Face Profit Squeeze as Iran Conflict Shrinks UAE Mall Sales, Sources Say
Luxury groups saw March sales fall 30% to 50% at major Dubai malls as the Iran conflict dampened demand, a source said.
- Luxury brands reported sales drops of 30-50% in March at the Mall of the Emirates in Dubai compared to last year, marking a significant setback for the $400 billion industry.
- The conflict, sparked by February 28 U.S. and Israeli strikes on Iran, has shaken Dubai's carefully curated image of stability. Iranian drone attacks targeted the city's major airport and damaged the Burj Al Arab hotel.
- Accounting for roughly 5% of global luxury consumption, the Middle East had been a rare bright spot with double-digit annual growth. Major operators of the Mall of the Emirates, Dubai Mall, and Galleria did not respond to comment requests.
- Analysts at Bernstein warned that ripple effects including higher oil costs and inflation could "easily disrupt" shopper appetite beyond the Gulf, particularly in the United States.
- Since the luxury boom ended in 2022, the combined market capitalization of LVMH and Kering has fallen by more than 100 billion euros, representing over a quarter of their value. Portfolio manager Christopher Rossbach noted luxury recovery in 2026 might be postponed into next year.
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48 Articles
48 Articles
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In Dubai's shopping centers, the number of visitors has fallen sharply and sales are falling, with the country being one of the bright spots for the industry.
·Munich, Germany
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Sales of several European luxury brands have declined in Dubai and Abu Dhabi, amid the impact of the Iranian war on one of the region's fastest-growing luxury goods markets...
·Amman, Jordan
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Total News Sources48
Leaning Left6Leaning Right10Center15Last UpdatedBias Distribution49% Center
Bias Distribution
- 49% of the sources are Center
49% Center
L 19%
C 49%
R 32%
Factuality
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