Could the Middle East War Impact the Swiss Watch Industry?
The ongoing conflict in the Middle East, particularly involving Israel and Iran, has not severely impacted the Swiss watch industry in the Gulf states, which collectively represent a market worth over CHF 2.2 billion annually. Despite the turmoil, shopping malls in Dubai, Bahrain, and Doha remain vibrant, with luxury watch retailers like Ahmed Seddiqi & Sons and Rivoli Group reporting no store closures. The UAE has shown resilience, with its leadership actively engaging with the public and maintaining normal business operations, bolstered by a strong security response to incoming threats. As the UAE has risen to become the eighth largest market for Swiss watch exports, with CHF 1.3 billion in sales last year, the stakes are high for the watch industry during this conflict. The GCC region’s collective imports of Swiss watches amount to CHF 921 million, indicating its significance as a single market that could rank second globally. While there are hopes for a swift resolution to the conflict, the confidence displayed by business leaders suggests that the UAE's status as a stable hub will endure through these challenges.
