Have luxury brands lost golden goose Dubai? Luxury sales down by half

The luxury sector is feeling the pinch as tensions in the Middle East escalate. For years, Dubai in particular was as a key driver of profits for luxury brands, but now sharp declines are emerging in both sales and visitor numbers.

Sales down by half

In March, luxury brands in Dubai saw their sales drop by 30 to 50%. Shopping malls that are normally among the busiest in the world are suddenly dealing with empty aisles. At the Mall of the Emirates, foot traffic fell by more than 15%, while the Dubai Mall lost nearly half of its visitors.