Global brands have temporarily shut stores and scaled back operations across the Middle East as an escalating regional conflict disrupts business, travel and retail activity, according to a report by Reuters.
In Dubai and other key shopping hubs, several outlets are either closed or operating with minimal staff as tensions rise following an expanded U.S.-Israeli air campaign against Iran. Tehran has retaliated with missile and drone strikes targeting Gulf states, heightening uncertainty across the region.
Chalhoub Group, which operates around 900 stores for international brands including Versace, Jimmy Choo and Sephora, said its stores in Bahrain are closed, Reuters reported. Other markets such as the United Arab Emirates, Saudi Arabia and Jordan remain open, though attendance is voluntary.
E-commerce giant Amazon has closed its fulfilment centre operations in Abu Dhabi, suspended deliveries across the region and instructed employees in Saudi Arabia and Jordan to remain indoors, according to a media report citing an internal memo.
Luxury group Kering, which owns Gucci, said its stores were temporarily closed in the UAE, Kuwait, Bahrain and Qatar, and it has suspended travel to the Middle East.
Shares in major luxury companies including LVMH, Hermès and Richemont fell between 4% and 5.7% on Monday afternoon as investors assessed the potential impact of the conflict.
Although the Middle East accounts for an estimated 5% to 10% of global luxury spending, analysts say it has been one of the fastest-growing markets for high-end goods. Airport closures have halted tourism flows, while missile strikes — including one that damaged Dubai’s Fairmont Palm hotel — are expected to deter travellers if hostilities continue.
Luxury brands have recently expanded their presence in the region. Richemont-owned Cartier unveiled a high-jewellery exhibition in Dubai just days before the conflict began. LVMH’s flagship brand Louis Vuitton also hosted an exhibition at the Jumeirah Marsa Al Arab hotel last month.
LVMH’s Chief Financial Officer Cecile Cabanis had said in January that the Middle East has been “displaying significant growth.”
Mass-market retailers are also reassessing plans. Budget fashion chain Primark had announced new store openings in Dubai and other Gulf markets this year.
Meanwhile, Apple stores in Dubai will remain closed until Thursday morning, according to its website. Swedish retailer H&M said its stores in Bahrain and Israel are closed.
According to a report by MacRumors, the iPhone maker’s outlets will remain shut at least until Tuesday, March 3. Notices displayed at the stores state that they will be closed “until further notice.”
The temporary closure affects key Apple Store locations across the country, including outlets at Dubai Mall, near the Burj Khalifa, Mall of the Emirates, as well as Yas Mall, Al Jimi Mall, and Al Maryah Island.
Consumer goods group Reckitt has instructed all employees in the Middle East to work from home, temporarily shut its Bahrain manufacturing site and suspended business travel to the region until further notice, Reuters reported.
