According to March data, luxury homes have seen a 30 to 50 percent drop in sales at the "Mall of the Emirates" in Dubai compared to the same month last year. Visits to this center fell by 15 percent, while traffic at the larger "Dubai Mall," popular among tourists, dropped by about 50 percent. In Abu Dhabi, the "Galleria mall" recorded a milder decline, around ten percent, Reuters reports. The conflict has tarnished Dubai's image as a center of glamour and stability, after Iranian drones repeatedly targeted the airport and infrastructure, and the Burj Al Arab hotel suffered damage from debris of intercepted missiles. The luxury industry, which lost over 100 billion euros in market value after the pandemic, is now facing another blow. "The Middle East was a strategic region with double-digit revenue growth, but it is now hit by the crisis," said Carole Madjo from Barclays. Analysts warn that recovery will take months, even if diplomatic efforts succeed. The effects of the conflict, rising oil and travel prices, inflation, and potential stock market declines could weaken consumer demand beyond the Gulf, particularly in the United States. LVMH, Kering, and Hermès are releasing quarterly results this week, and the impact of the conflict is expected to be more visible in the half-yearly profit reports. Dubai, with low labor and tax costs, remains one of the most profitable luxury markets, where annual sales per square meter far exceed the global average.