Gulf luxury car profits under siege

A LASER-ENGRAVED bonnet inspired by Arabian architecture and a matching wood-trim interior are among the luxuries Rolls-Royce featured in a one-off Phantom Arabesque model commissioned by a Dubai customer it showcased in February before the Iran war.

Now the Middle East market, which in volume terms accounts for less than 10% of sales at most luxury carmakers but punches far above its weight in profit, is under threat just as demand is weakening almost everywhere around the globe.