A laser-engraved hood inspired by Arabian architecture, and a matching wood-trim interior, were among the luxury features that Rolls-Royce included in a one-off Phantom Arabesque — commissioned by a Dubai customer and showcased in February, before the Iran war.
Now the Middle East market, which in volume terms accounts for less than 10 per cent of sales at most luxury carmakers but punches far above its weight in profit, is under threat.
A standard Rolls-Royce Phantom starts at about 430,000 pounds ($572,416), but the addition of bespoke features for wealthy Gulf buyers can push prices up.
‘Best market’
Rolls-Royce Motor Cars, owned by Germany’s BMW, revealed the Arabesque a week after opening its second Dubai showroom. Then the strikes sent shockwaves across the region.
Many luxury dealerships in the Gulf closed temporarily after war broke out on February 28. Ferrari and Stellantis unit Maserati paused deliveries. F1rst Motors in Dubai, which sells all the top luxury car brands, shut its doors for the first few days after the war started, but has since reopened.
Director Chris Bull said the showroom is best known for its selection of Ferraris and Bugattis and sells vehicles ranging from about $250,000 all the way up to $14 million.
At a standstill
Brands including Lamborghini, Bentley, Ferrari and Porsche are watching nervously, hoping for a swift end to the conflict.
Ferrari reported volumes in the Middle East that made up 4.6 per cent of overall sales last year, more than it sold in China and up from 3.5 per cent in 2024. The Italian sports car maker’s sales in the region are stable for now, a spokesperson said.
A hallmark of the region is limitededition runs that allow automakers to charge hefty premiums for special wood trims, mother-of-pearl inlays or even gold leaf finishes.
Now this bespoke business in the region has all but ground to a halt, industry executives said .
