- Dubai's spice and dry fruit markets face impact from Iran-US Gulf conflict
- Key suppliers Iran, Afghanistan, and Pakistan have disrupted trade flows
- Market footfall and sales have dropped sharply, likened to Covid period lows
Dubai's historic spice and dry fruit markets, a major global hub for the trade of saffron, nuts, dates, and spices, are beginning to feel the impact of war in Iran as Tehran bombs US targets in the Middle East, including the United Arab Emirates (UAE), Bahrain, Kuwait, Qatar, and Saudi Arabia. Traders said that key suppliers such as Iran, Afghanistan, and Pakistan, crucial to the business, have been hindered due to the chaos and uncertainty in the region.
NDTV visited Dubai's famous Deira Spice Souk to understand how geopolitical tensions are beginning to ripple through one of the region's most important food trading hubs and what traders on the ground are witnessing as the crisis unfolds.
The market, which usually witnesses thousands of buyers each day, is struggling to make sales due to low footfall.
One of the shopkeepers, Imran, who runs a dry fruit shop in the market, told NDTV, "This is a very tough time for us. There is almost no selling right now."
"Because of the war between Iran and Israel, trade has been affected. We usually export dry fruits to many countries, but right now shipments are not moving easily because of the situation around the Strait of Hormuz. We also receive dry fruits from Iran, but those supplies have also slowed down," he said.
Another shopkeeper, Asif, from Pakistan, echoed similar concerns. He said, "The market is very quiet right now. Usually, thousands of buyers come here every day, and business is very good. But these days it feels almost like the Covid period. Footfall is very low, and sales have dropped sharply. It is a very difficult time for traders."
The war with Iran is doing collateral damage to the world economy. The conflict is driving up energy and fertiliser prices, threatening food shortages in poor countries, destabilising fragile states such as Pakistan, and complicating options for the inflation fighters at central banks like the Federal Reserve.
Iran's Foreign Minister Abbas Araghchi said on Tuesday his country would keep fighting as long as necessary, casting doubt on US President Donald Trump's insistence that the conflict would be over "soon." The remarks from one of Iran's top leaders, who also ruled out negotiations with Washington, came as Tehran launched a new wave of attacks on US-allied Gulf nations hours after Trump's assurances of a swift end to the rapidly widening conflict.
