Luxury Brands Temporarily Shutter Middle East Stores

New York—High-end stores in luxury shopping hubs in the Middle East are temporarily closing following the U.S.-Israeli air strikes against Iran over the weekend, which have ignited a major conflict in the region.

Hundreds of deaths have been reported throughout the Middle East, with nearly 800 deaths in Iran, including more than 175 children and staff at a girl’s school. There were 10 deaths reported in Israel.

Six U.S. service members have been killed.

The United States has temporarily closed its embassies in Saudi Arabia, Kuwait, and Beirut due to drone attacks, urging Americans in the region—including Americans in Israel and the United Arab Emirates—to leave, though thousands of flights have been cancelled.

On Tuesday, the State Department issued a travel warning update that elevated the UAE to Level 3 (reconsider travel to). Israel also is at Level 3, while Iran, Iraq, Lebanon, Syria, and Yemen are Level 5 (do not travel to). 

Inevitably, the violence has impacted the economy, with several retailers choosing to temporarily suspend operations in the Middle East, a wealthy region that has attracted a growing number of luxury brands as well as auction houses in recent years. 

Kering has temporarily closed its stores in the United Arab Emirates, Kuwait, Bahrain, and Qatar, and has suspended travel to the Middle East, as per Reuters.

Its brand portfolio includes jewelry brands Boucheron, Pomellato, and Qeelin, as well as Gucci, Saint Laurent, Balenciaga, and Bottega Veneta.

Kering’s “Rest of the World” segment, which includes the Middle East region, accounted for 9 percent of its revenue in 2025, as per its recent financial report.

Dubai-based retail operator Chalhoub Group, which runs around 900 stores for brands like Versace, Sephora, and Jimmy Choo, temporarily closed its stores in Bahrain, according to Reuters.

Its stores in the UAE, Saudi Arabia, and Jordan remained open as of press time.

Richemont, owner of Cartier and Van Cleef & Arpels, and LVMH, which owns Tiffany & Co. and Bulgari, among others, did not respond to a request for comment regarding their operations in the Middle East, though both have a presence in the region.

For Richemont, the Middle East & Africa region accounts for 10 percent of its total revenue, with sales up 20 percent in its recent third quarter.

The growth was led by the UAE, said Richemont, as well as strong demand from locals and tourists.

Richemont-owned Cartier recently unveiled its new “En Équilibre” high jewelry exhibition in Dubai’s Keturah Park.

For LVMH, its “Other Markets” segment, which includes the Middle East, accounted for 14 percent of its revenue in 2025.

The Middle East is an important hub for the luxury market, with Bain & Co. highlighting the region as “luxury’s brightest performer” in its November 2025 luxury report.

The region’s luxury market was expected to see 4 to 6 percent growth last year, bolstered by tourism in Dubai and Abu Dhabi, and steady demand in Saudi Arabia.

Notably, the conflict comes at an especially inopportune time as millions observe Ramadan, an important holiday both for the religious community and the region’s retailers as consumers look to celebrate the season.

For U.S. consumers, the rising price of oil amid already existing inflation could stretch discretionary budgets even more thin.

As for other retailers, Amazon has closed its fulfillment center operations in Abu Dhabi, suspending deliveries across the region, as per a Business Insider report. Its employees in Saudi Arabia and Jordan were advised to remain indoors.

Three of its data centers in UAE were damaged as a result of a drone strike, reported Business Insider.

Apple has temporarily closed its stores in Abu Dhabi and Dubai, as per a 9to5Mac report.

Notably, many of Dubai’s major shopping malls are still open.

Dubai-based real estate company Emaar Malls Management, the owner of several Dubai malls and other properties, sent a memo to tenants this past weekend, as reported by WWD.

The memo reportedly warned them not to close or reduce hours without official direction from the government or Emaar, or risk breaching their lease agreements.

Luxury stocks also took a hit, with LVMH and Kering seeing share prices dip.