00:00Sales at Europe's biggest luxury brands have declined in Dubai and Abu Dhabi, as the Iran conflict hit the sector's
00:08fastest-growing market.
00:10It's the latest setback for the $400 billion industry, whose value has contracted over the last three years and a
00:17sign of the conflict's impact on the luxury sector.
00:20At the Mall of the Emirates, one of Dubai's largest, luxury brands reported 30-50% sales declines in March,
00:28compared to the same month last year.
00:31That's according to a source with knowledge of the previously unreported figures.
00:35The source also said the number of shoppers visiting the Mall of the Emirates was down 15% in March,
00:41while foot traffic at the larger Dubai Mall was down around 50%, which could mean a potentially even larger sales
00:47drop.
00:47In Abu Dhabi, a smaller shopping hub than Dubai, March sales at the Galleria Mall were more resilient, but still
00:54down around 10% across the board, according to an industry source.
00:59None of the companies responsible for operating the Mall of the Emirates, Dubai Mall, or Galleria Mall replied to a
01:05Reuters request for comment.
01:07The Middle East accounts for roughly 5% of global luxury consumption.
01:11Analysts say it has been one of the luxury industry's rare bright spots, reporting double-digit annual revenue growth in
01:18recent years.
01:20But Dubai's carefully curated image of glamour and stability has been shaken by the Iran conflict, with the city's major
01:27airport and other infrastructure targeted by Iranian drone attacks.
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