The region was the sector's fastest-growing geography in 2025. Now brands are navigating store disruptions, vanishing tourists and a market splitting along geographic lines. According to Bernstein’s analysis, the Middle East accounts for roughly 6% of global luxury sales, closer to high-single digits for the major houses given their skew toward high-net-worth clients, and was the fastest-growing geography in fiscal 2025, expanding 6% to 8% organically against a sector that was essentially flat. But that momentum has now hit a wall. Reports from retailers in the region indicate Saudi Arabia is very strong, with business running largely uninterrupted since the conflict began. Turkey is also holding firm. Notably, jewelry has proven more resilient than fashion across the board, buoyed in part by rising gold prices as investors seek safe haven assets amid the uncertainty. Malls in the UAE have remained open, as have most luxury boutiques since the beginning of the war. It is the smaller Gulf states where disruption has concentrated most acutely.