Swiss watchmakers are expressing significant uncertainty regarding the effects of the ongoing Middle East conflict on their industry, as highlighted during the Watches and Wonders fair in Geneva, the sector's largest annual event [1]. Elie Bernheim, CEO of Raymond Weil, noted that the Middle East accounts for approximately 10 percent of his company's revenue and emphasized that the unpredictability of the current situation is particularly destabilizing, stating, 'nothing can be anticipated' and 'everything can change from one day to the next' [1].
Bertrand Meylan, co-owner of H. Moser, echoed concerns about the broader economic impact, warning that prolonged conflict could heighten anxiety and dampen global consumer spending, as 'people don't buy during times of anxiety' [1]. He observed that brands reliant on tourism are suffering, while those with a strong local customer base in the Middle East continue to see steady business, similar to patterns observed during the COVID-19 pandemic [1].
The Swiss watch industry has faced multiple recent challenges, including the subprime mortgage crisis, the rise of smartwatches, the COVID-19 pandemic, and U.S. tariffs in the previous year [1]. Despite these hurdles, Swiss watch exports have more than doubled over the past 20 years [1]. However, the sector experienced a decline in exports, falling by 2.8 percent in 2024 and by 1.7 percent in 2025, reaching 25.6 billion Swiss francs ($32.5 billion) [1].
According to Yves Bugmann, president of the Federation of the Swiss Watch Industry, the Middle East accounted for about 10 percent of Swiss watch exports last year, a significant share compared to the United States at 17 percent, followed by Japan, mainland China, Hong Kong, Britain, and Singapore [1]. The ongoing conflict introduces further uncertainty to an industry already coping with reduced demand in China and recent U.S. tariffs [1].
CONCLUSION
Swiss watchmakers are closely monitoring the Middle East conflict, which has introduced new uncertainty to an industry already facing declining exports and shifting consumer demand. While the long-term resilience of the sector is noted, executives warn that prolonged instability could further impact sales, particularly in key export markets.