Italy’s Leather Goods Exports to Middle East Plunge 44% Amid Conflict in the Region

Italy’s export oriented manufacturing sector is facing growing pressure from the war and geopolitical tensions in the Middle East, with the leather, footwear and wider fashion supply chain particularly exposed to weaker demand.

According to a survey by the Confartigianato Research Office, Italian exports to the Middle East declined 22.7% during the first four months of the conflict, compared with an average fall of 8.7% across the European Union. In value terms, Italy lost nearly €2.2 billion in exports, representing 46.1% of the total contraction recorded across the EU.

The impact has been especially severe for the fashion supply chain. Italian exports of textiles, clothing and leather goods to Middle Eastern markets fell 33.7%, while leather goods exports alone dropped by more than 44%, the sharpest decline among the sectors analyzed.

The downturn comes at a challenging time for Italy’s leather goods industry, which is already dealing with softer international demand and rising operating costs. Italian leather goods exports totaled €2.35 billion in the first quarter of 2026, down 3.7% year on year, while export volumes declined 12.4%.

Other major Italian export sectors also suffered during the Middle East conflict. Machinery, the country’s leading export category to the region, declined 18.6%, while furniture fell 14.4% and food exports decreased 7.7%. Metal products were one of the few sectors to record growth, rising 2.3%.

Among individual Middle Eastern markets, the United Arab Emirates recorded the largest decline in Italian exports at €879 million, followed by Kuwait at €649 million and Qatar at €345 million. Iraq, Iran and Bahrain also registered declines.

For Italian leather and footwear companies, the weaker order environment is being compounded by higher energy, insurance and transportation costs. Prolonged disruption could therefore put further pressure on production, investment and the competitiveness of Italy’s internationally recognized leather and footwear supply chain.