Gulf Retail Markets Face Challenges Amid Iran Conflict, Impacting Visitor Spending
The retail markets in the Gulf region are experiencing significant disruptions due to the recent conflict involving Iran. The joint U.S.-Israeli strikes on Iran and subsequent retaliatory actions by Tehran have led to a temporary closure of airspace and the shuttering of major retail stores across Bahrain, the UAE, Kuwait, and Qatar. This has resulted in a projected decline in visitor spending, with Oxford Economics estimating a potential loss of $34 billion to $56 billion. The conflict has highlighted the vulnerabilities of markets heavily reliant on tourism, while also showcasing the resilience of domestic-driven markets like Saudi Arabia. In Saudi Arabia, retail operators such as Cenomi Centers have reported strong performance despite the regional instability, attributing success to a focus on domestic consumers and structural improvements in retail spaces. 
