Rising geopolitical tensions in West Asia have significantly slowed jewellery demand across the Gulf, impacting Indian retailers with a strong regional footprint. Industry players report a steep decline in sales—dropping up to 70% in March compared to last year—as consumer confidence weakens amid uncertainty.
Leading brands including Malabar Gold & Diamonds, Kalyan Jewellers, Joyalukkas, and Titan Company’s Tanishq are seeing reduced store traffic and cautious spending patterns, despite most outlets remaining operational across markets like the UAE.
The Gulf, valued at roughly $2 billion for jewellery retail, sees Indian brands contributing nearly half of the overall business. While festive buying during Eid offered some relief—particularly in comparatively stable markets such as Saudi Arabia—the broader outlook remains subdued.
Retailers are also reassessing their regional strategies, with expansion plans being deferred due to ongoing volatility. Despite the slowdown, companies indicate that long-term transformation initiatives remain on track, even as near-term growth faces headwinds.