The escalating conflict in the Middle East is forcing major luxury brands to close stores or reduce operations across the region. Chalhoub Group has closed Bahrain locations, while Kering temporarily shut stores in the UAE, Kuwait, Bahrain and Qatar. Apple stores in Dubai remain closed until March 5, and H&M has shuttered locations in Bahrain and Israel. LVMH, Hermès and Richemont shares fell 4-5.7% on March 2. The disruption is significant: the Middle East was described as luxury’s “brightest performer” in 2025 by Bain, though it accounts for just 5-10% of global luxury sales.

Related reading: Travel chaos worsens as Iran conflict shuts key Mideast airports