Middle East Conflict Disrupts Luxury Sector with Impact on Key Brands and Markets

The Middle East conflict has disrupted airspace and closed key airports like Dubai and Doha, impacting the luxury sector that relies heavily on regional sales and tourism. The Middle East accounts for about 5-6% of global luxury sales, with the UAE contributing half of the regional revenue. Brands such as Richemont and Zegna are most exposed, each deriving around 9% of sales from the region. The crisis threatens the sector's recovery amid a broader demand slowdown and may affect the Ramadan shopping season.