Major manufacturers shut Middle East shops as Gulf battle intensifies | EUROtoday

On Mar 2, 2026

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Across Dubai and different main Middle Eastern purchasing hubs, many shops are closed or working with skeleton employees as escalating battle within the area causes chaos for companies and journey.

The US-Israeli air battle towards Iran expanded on Monday with no sign of ending, with Tehran firing missiles and drones at Gulf states.

This retaliates for a weekend of bombing that killed Iran’s supreme chief and reportedly scores of Iranian civilians, together with a strike on a women’ main faculty.

Chalhoub Group, which runs 900 shops for manufacturers from Versace and Jimmy Choo to Sephora throughout the area, mentioned its shops in Bahrain have been closed, whereas different markets, together with the United Arab Emirates, Saudi Arabia, and Jordan remained open although employees attendance was “voluntary.”

“We operate with a lean team formed of members who volunteered and feel comfortable to come to the store,” Chalhoub’s Vice President of Communications Lynn al Khatib informed Reuters, including that the corporate’s management crew personally visited Dubai Mall and Mall of the Emirates on Monday morning to examine in with employees.

Gucci proprietor Kering introduced non permanent retailer closures within the UAE, Kuwait, Bahrain, and Qatar, suspending all journey to the Middle East.

Chalhoub Group, which runs 900 stores for brands from Versace and Jimmy Choo to Sephora across the region, said its stores in Bahrain were closed, while other markets, including the United Arab Emirates, Saudi Arabia, and Jordan remained open though staff attendance was ‘voluntary’ — Chalhoub Group, which runs 900 shops for manufacturers from Versace and Jimmy Choo to Sephora throughout the area, mentioned its shops in Bahrain have been closed, whereas different markets, together with the United Arab Emirates, Saudi Arabia, and Jordan remained open although employees attendance was ‘voluntary’ (Getty/iStock)

This widespread disruption highlights the battle’s profound financial influence.

Luxury progress engine beneath risk

Shares in luxurious teams LVMH, Hermes, and Cartier proprietor Richemont have been down 4 per cent to six.5 per cent on Monday as buyers digested the knock-on impacts of the battle.

The Middle East nonetheless accounts for a small share of worldwide spending on luxurious – between 5 per cent and 10 per cent, in line with RBC analyst Piral Dadhania.

But the area was “luxury’s brightest performer” final 12 months, in line with consultancy Bain, whereas gross sales of costly purses have stalled in the remainder of the world.

Now, shuttered airports have put an abrupt cease to tourism flows into the area and missile strikes – together with one which broken Dubai’s five-star Fairmont Palm resort – are more likely to dissuade travellers, significantly if the battle drags on.

“If you assume that it’s a $5 to $6 billion (travel retail) market and let’s say it’s going to be shut down for a month, we are talking about hundreds of millions of dollars that are definitely at risk,” mentioned Victor Dijon, senior associate at consultancy Kearney.

The Middle East still accounts for a small share of global spending on luxury - between 5 per cent and 10 per cent, according to RBC analyst Piral Dadhania — The Middle East nonetheless accounts for a small share of worldwide spending on luxurious – between 5 per cent and 10 per cent, in line with RBC analyst Piral Dadhania (Associated Press)

If Middle Eastern buyers can not journey to Paris or Milan, that might additionally damage luxurious gross sales in Europe, he added.

Luxury manufacturers have been investing in lavish new shops and unique occasions throughout the area. Cartier unveiled a “high-jewellery” exhibition in Dubai’s Keturah Park simply days earlier than the battle began. Cartier and Richemont didn’t reply to requests for remark.

Luxury conglomerate LVMH has additionally guess large on the area. Last month, its flagship model Louis Vuitton staged an exhibition on the Jumeirah Marsa Al Arab resort, and wonder retailer Sephora launched its first Saudi magnificence model.

LVMH doesn’t report particular figures for the area, however in January Chief Financial Officer Cecile Cabanis mentioned the Middle East has been “displaying significant growth.” LVMH didn’t reply to a request for touch upon how its enterprise could also be impacted by the battle.

The Middle East has additionally attracted new funding from mass-market gamers.

Luxury brands have been investing in lavish new stores and exclusive events across the region — Luxury manufacturers have been investing in lavish new shops and unique occasions throughout the area (Associated Press)

Budget style retailer Primark mentioned in January that it plans to open three shops in Dubai in March, April and May, adopted by shops in Bahrain and Qatar by the tip of the 12 months.

“Primark is set to open its first store in Dubai at the end of March but clearly this is a fast-moving situation which we are monitoring closely,” a spokesperson for Primark proprietor Associated British Foods mentioned.

Apple shops in Dubai have been closed till Thursday morning, the corporate’s web site confirmed, whereas Swedish fast-fashion retailer H&M HMb.ST mentioned its shops in Bahrain and Israel are closed. Consumer items group Reckitt RKT.L has informed all workers within the Middle East to earn a living from home, quickly closed its Bahrain manufacturing web site and suspended all enterprise journey to the area till additional discover.

https://www.independent.co.uk/news/world/middle-east/dubai-gucci-hermes-stores-closed-b2930497.html