Sharp declines reported across major malls
Sales at Europe’s leading luxury brands have dropped significantly in Dubai and Abu Dhabi, as the ongoing Iran war disrupts one of the sector’s fastest-growing markets, according to a Reuters report. The conflict has affected both consumer confidence and tourist activity, which are critical drivers of luxury retail in the region.
At the Mall of the Emirates, several high-end brands recorded declines ranging between 30 and 50 percent in March compared to the same period last year. Meanwhile, major names including Louis Vuitton, Dior, Gucci, Cartier, Chanel, and Rolex reported an overall sales drop of around 15 percent across the region.
In addition, the Dubai Mall, which relies heavily on international tourists, experienced a sharp decline in footfall. Visitor traffic fell by nearly 50 percent, indicating an even steeper fall in retail sales.
Luxury Sales Plunge in Dubai and Abu Dhabi as Iran War Hits Retail Sector
Similarly, Abu Dhabi’s The Galleria Al Maryah Island reported a 10 percent decrease in sales, reflecting a broader slowdown across key retail hubs. Analysts suggest that reduced travel and heightened geopolitical uncertainty have significantly impacted consumer spending patterns.
Previously, the Middle East had remained a strong growth area for the global luxury market, even as worldwide sales declined by 2 percent last year. However, the ongoing conflict has now introduced fresh challenges for brands operating in the region.
Moreover, experts warn that recovery may take several months, even if diplomatic efforts ease tensions. Although the region accounts for about 5 percent of global luxury consumption, it remains highly profitable due to low taxes, strong tourism, and high retail productivity.
