The Middle East is one of the world’s fastest growing luxury markets—and the war in Iran may cut its sales in half, analysts say

A man walks between two luxury cars with the skyline of Dubai in the background. (Credit: Christopher Pike/Bloomberg—Getty Images)

The Middle East’s thriving luxury sector isn’t immune to the war in Iran, and CEOs of top brands have their eyes on the region.

“Clearly, we look close and every day on the situation,” Hugo Boss CEO Daniel Grieder said during an earnings call earlier this month. “It has a direct impact on store opening and store performance because there’s not many tourists or less tourists shopping. That’s clear. That has an effect on the shopping centers and so forth and for all the brands.”