Retailers defiant in face of war

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Retailers in the Middle East have reacted stoically to the war in Iraq, saying that it is 'business as usual' in their shops

Duty-free shops at airports in Kuwait, Bahrain, Abu Dhabi and Dubai remain open 24 hours, spokespeople told DFNI, and no investment or expansion plans have been put on hold. However, sales in most shops are down, and retailers say that the level of damage will be proportional to the length of time the war drags on.

"Places that are closer to the conflict - Kuwait, Bahrain and Qatar - are affected the most, while others such as Beirut and Oman are not so badly affected because they are further away," said Aer Rianta International - Middle East managing director John Sutcliffe. "But in general there has been a considerable downturn in the region. My main concern has been for the safety of our personnel, particularly in locations close to the war zone. But at this stage there have been no incidents and no reason to be overly concerned."

Kuwait Duty Free market analyst Inderjit Ghandi said the influx of media and military to the region has helped keep business afloat in the weeks running up to the war. "The exodus of many of the expatriate population of Kuwait, coupled with the mass movement of media personnel, support and contract staff related to the military build-up here, has helped keep business volumes and sales at adequate levels." However, the company expects a 15-20% drop below normal in passenger numbers for the time of year.

Many expressed worries that the war will trigger increased anti-western feeling in the region, thus discouraging foreign visitors. "The problem is that if it damages people's businesses and creates a difficult situation economically, it adds fuel to the fire," said Sutcliffe. "When individuals who may be remote to the conflict start to feel the effects of the war personally - whether they lose their jobs or their business suffers - it will start to get even more nasty. I am more concerned about the anti-western feeling that exists as a result of this, and I hope for that reason that the war will not be drawn out and leave a bad taste."

For in-depth analysis of the situation in the Gulf, see DFNI 1 April edition