- Businesses in the UAE face declining consumer activity amid the Middle East crisis
- Ajmal Perfumes reports a 15-20% potential business drop across six Gulf countries
- Logistics and exports are disrupted, with shipments delayed and costs rising
Amid the ongoing crisis in the Middle East, businesses in the United Arab Emirates (UAE) are beginning to feel the impact, with declining consumer activity and growing concerns over supply chains. NDTV visited the manufacturing facility of Ajmal Perfumes in Dubai, one of the region's largest perfume brands, to understand how the situation is affecting the market.
Speaking to NDTV, Ajmal Group CEO Abdullah Ajmal said the situation is worrying and has already started affecting business across the region.
Ajmal said that footfall in stores has dropped significantly at a time that is usually the peak season for perfume sales, adding that the decline is noticeable across the Gulf region. He added that it is still early to put an exact number to the losses, but business could be hit by around 15 to 20 percent across six countries - Bahrain, Qatar, Oman, Kuwait, Saudi Arabia and UAE.
Ajmal also pointed to growing problems in logistics and exports. He said shipments are currently not moving as usual, which has affected exports from the region. According to him, the company is trying to move some products by air, but that is far more expensive and not always practical.
He further mentioned that the Ajmal group relies on raw materials sourced from different parts of the world, and several consignments are currently stuck at sea due to disruptions.
Ajmal said the situation has not yet reached a critical level for the company, but if the disruptions continue for another month or so, supply of raw materials could become a serious concern.
Talking about the Indian market, he said India remains relatively secure for now. The company had already stocked the market in preparation for a major campaign, which means supplies in India are expected to last for at least the next couple of months.
Ajmal warned that if the current situation does not improve, markets across the region could face deeper disruptions in the coming weeks.
