# The Middle East had emerged as a vital source of growth for many upscale brands.

*business · news · 2026-04-19 · The New York Times*

## Key points

- Zegna Group is shifting inventory from the Middle East to markets like London and Paris.
- Executives hope expatriates displaced from Gulf cities will continue luxury spending elsewhere.
- Tourism in Persian Gulf nations has slowed drastically, severely impacting local luxury sales.
- Recent investments by major luxury brands in Gulf retail and e-commerce are now at risk.

**Companies:** Zegna Group, Dior, Ferragamo, Moncler
**Countries:** United Arab Emirates, Bahrain, United States, Israel, Iran, Qatar, France, Italy

[Read the full story on The New York Times](https://www.nytimes.com/2026/04/19/business/luxury-brands-bet-on-the-middle-east-war-has-damaged-their-plans.html)

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