00:00The Middle East car market is under threat as demand is weakening almost everywhere
00:05after the US-Israeli war with Iran sent shockwaves across the region.
00:10In volume terms, the Middle East region accounts for less than 10% of global sales
00:14at most luxury carmakers, but it punches above its weight in profit.
00:19A standard Rolls-Royce Phantom starts at about $572,400.
00:25And adding bespoke features for wealthy golf buyers can push prices to double or triple that.
00:32Many luxury dealerships in the golf closed temporarily after the war broke out in late February.
00:38Ferrari and Stellantis unit Maserati paused deliveries this month,
00:43although both say showrooms have since reopened.
00:46First Motors in Dubai, which sells all the top luxury car brands,
00:50shut its doors for the first few days after the war started, but has since reopened.
00:56Chris Bull is its director.
00:57There has definitely been a small decline in business in terms of people coming in and out the showroom,
01:03in terms of volume of sales of vehicles sold.
01:05But it hasn't been as much perhaps that we would experience as perhaps is anticipated from the outside world.
01:12A hallmark of the region is the limited edition runs that allow automakers to charge hefty premiums
01:17for special wood trims, mother-of-pearl inlays or even gold-leaf finishes.
01:23In 2024, JLR sold 20 special edition Range Rover Sport SV vehicles
01:28for around three times the starting price in Britain.
01:32But some industry executives say this bespoke business in the region has all but ground to a halt
01:37and that luxury brands are watching nervously, hoping for a swift end to the conflict.
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