Middle East Luxury Sales Surge 6% Amid Israel-Iran Conflict

The Middle East luxury market continues to serve as a critical growth region for the global luxury industry, offsetting declines in primary US and Chinese markets amid a global slowdown. Luxury sales in Gulf countries rose 6% to $12.8 billion last year, outperforming the global market's 2% decline, driven by strong demand for high-end fashion, jewelry, and beauty products, as well as robust tourist spending which accounts for 50-60% of sales. The reopening of Middle East airspace and a US-mediated ceasefire between Israel and Iran have helped stabilize the region, despite short-term volatility caused by recent conflicts. The region's strategic importance has grown due to flight rerouting after Russia's invasion of Ukraine, attracting wealthy tourists from Russia, Asia, and India, where high tariffs limit direct luxury brand expansion. Brands like Prada and Hermès have reported significant year-over-year sales increases, and luxury companies continue investing through new store openings and high-profile events. Industry leaders remain cautiously optimistic about the Middle East's long-term potential, emphasizing the need to maintain stable visitor flows to sustain growth.