Dubai, long celebrated as a glittering hub for the world’s wealthiest shoppers, is facing an abrupt slowdown as war between the United States, Israel and Iran disrupts the region. The Dubai Mall, typically bustling with buyers of high-end watches, handbags and jewelry, has seen a sharp decline in foot traffic despite most stores remaining open.

The United Arab Emirates accounts for roughly half of all luxury goods sales in the Middle East, with Dubai driving the majority of those purchases. However, recent drone strikes that damaged Dubai International Airport and sparked a fire at the Burj Al Arab hotel have shaken the city’s reputation as a safe and stable haven. Tourism has stalled, and many travelers have struggled to leave the country.

Analysts estimate that luxury sales in the Middle East could be cut in half in March due to a steep drop in foreign visitors. Experts say a short conflict may only temporarily dent Dubai’s status as a global luxury capital, but a prolonged war could have far more lasting consequences for the city’s retail sector.