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Luxury carmakers' gold-leafed Gulf profits under threat from Iran war

Temporary showroom closures and paused deliveries have cut off a lucrative high-margin bespoke luxury car market in the Gulf, with some dealers reporting a 30% drop in business.

Summary
A laser-engraved hood inspired by Arabian architecture and a matching wood-trim interior are among the luxuries Rolls-Royce featured in a one-off Phantom Arabesque model commissioned by a Dubai customer it showcased in February before ​the Iran war. Now the Middle East market, which in volume terms accounts for less than 10% of sales at most luxury carmakers but punches far above its weight in ‌profit, is under threat just as demand is weakening almost everywhere around the globe.

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Reuters broke the news in United Kingdom on Monday, March 30, 2026.
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