The Iran War Is Already Tanking Luxury Sales in the Gulf—Could Art Be Next?
ARTnews reports that escalating conflict involving US and Israeli strikes on Iran, followed by Iranian attacks on the UAE, Qatar, Bahrain, and Saudi Arabia, is undermining the Gulf’s image as a stable hub for luxury and potentially the art market. Art Dubai, set to mark its 20th anniversary, was postponed from April to May and scaled back to 50 galleries after about 75 exhibitors withdrew, down from more than 120 galleries in 2025; it is now scheduled for May 15–17 at Madinat Jumeirah. The article links these pressures to broader luxury-market weakness, citing LVMH’s first-quarter revenue of €19.1 billion ($22.4 billion), down 6% year over year, and Kering’s 11% revenue drop alongside the creation of a Middle East “crisis unit.” Analysts at Bernstein projected Gulf luxury sales could fall by as much as 50% this year, and the piece notes that art markets often track luxury trends, with additional impacts including higher shipping and insurance costs for artworks moving through the region.
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This story was covered in Biennales Under Fire, A.I. Rewrites the Canon