When London’s West End stores emerged from lockdown, a queue soon formed outside Louis Vuitton on New Bond Street.
It seemed perverse; the world was in the throes of a health crisis, struggling to cope with illness and death on an enormous scale. Everywhere fear abounded, about the virus and its effects.
Across the globe, people were afraid for their vulnerable and elderly relatives and friends, children were denied access to school, social lives ground to a standstill, planes stopped flying, mental well-being plummeted and job insecurity soared. Yet, here were people who wanted to spend thousands on a handbag or a pair of boots. It was perverse.
Was it, really? When they were asked why they were doing this, the shoppers replied that they wished to treat themselves, that while they were holed up in their homes, they’d dreamt of one day touching, smelling, buying the sort of quality product that “LV” specialised in. They could have bought online but they wanted to enjoy the experience of being cosseted and indulged, and indulging, again.
Confirmation that luxury products are different, that they cater for a need in human beings outside the normal, everyday humdrum of just getting by, comes this week from Rolls-Royce. The BMW-owned company sold 5,586 vehicles last year, an increase of 49 per cent on 2020 and the highest total in its history.
According to Rolls-Royce’s boss, Torsten Müller-Otvös, wealthy motorists realised that “life is short”. He said: “Quite a lot of people witnessed people in their community dying from Covid, that makes them think life can be short, and you’d better live now than postpone it to a later date. That also has helped [Rolls-Royce sales] quite massively.”
His analysis is borne out by the fact that soaring demand was across the board, it really was worldwide. As, of course, were the ravages of the virus. Just as 5.5 million people have died due to Covid around the world, so too has Rolls-Royce enjoyed a commensurate rise in sales. The boom was not confined to one market but applied to all of them — something again the carmaker had never seen before. Normally, while one country or region is up, another is down. That was not the case this time. China and the Americas saw 30 per cent sales increases, Europe was up 20 per cent and the Middle East 10 per cent. South Korea and Russia also did well.
The surge was not confined to Rolls-Royce. Bentley also enjoyed a 30 per cent rise, selling 14,659 cars. The best-seller for Rolls-Royce was its new SUV, the Cullinan, which retails at £264,000, although customers were lining up to design their own Rolls-Royce Boat Tail model for a mere £20m.
The sense of parallel universes was exemplified by semiconductors. Elsewhere in cars and other industries there was a chronic shortage of the computer chips. Factories in Asia, hit by Covid, were unable to manufacture enough of them to keep pace with orders. Their absence added to worldwide supply chain woes. But Rolls-Royce and Bentley don’t make as many cars as other manufacturers and therefore require fewer chips. In the case of the former, parent BMW was able to lend its weight to source the chips; similarly, Volkswagen, which owns Bentley, helped the British subsidiary.
The Rolls-Royce results come on the back of figures from elsewhere in luxury goods. Hermes International reported a more than doubling of sales, to pre-pandemic levels. Revenue climbed by 127 per cent in the Birkin handbag-maker’s second quarter, beating City estimates, and was 33 per cent higher than in the same period of 2019. Likewise, LVMH posted a 40 per cent gain from 2019 for its fashion and leather goods. Gucci and Prada have also reported buoyant trading.
As with Rolls-Royce and Bentley, the designer labels are more insulated from the production problems besetting the rest of manufacturing. They depend less on the use of technology and mass-produced electronic components and more upon the application of finer, natural materials and artisanal craftsmanship.
Nevertheless, it appears odd that one section of society should be splashing out on such items while the rest is wilting. Superyachts — 894 were sold last year, costing $5.2bn, up from 465 at $3.2bn the year before, according to VesselsValue — and rare wines are also enjoying a roaring trade.
Accelerating inflation, recession, slowdown in China and the US could all change the mood. For now, though, they must find something to do with that money
But wealth has climbed. Borrowing costs are low and stock markets are soaring (the S& P 500 was 27 per cent higher last year), making the super-rich even richer. Accelerating inflation, recession, slowdown in China and the US could all change the mood. For now, though, they must find something to do with that money. Normally, that would be the getaway trip to the villa or ski chalet, but that is off limits. Besides, they’re sitting on so much that a spot of retail therapy via a new Roller or bit of LV won’t make much of a dent in their fortunes. In the UK, sales of mansions and country estates are also powering upwards — so much cash is there floating around.
There is, too, an extra factor. Rolls-Royce reports that the average age of its buyer is now 43, down from 56 over the last decade. The younger owners hail from tech and crypto, from industries that are equally youthful and have prospered during the previous, Covid-affected, two years.
What’s occurring is that people want to enjoy themselves, that’s the effect of the pandemic — get ready for the outpouring of crazy celebrations when the outbreak officially ends. As F Scott Fitzgerald wrote: “Let me tell you about the very rich. They are different from you and me. They possess and enjoy early …”
While we can only stand and gawp, a few — and exclusivity is the point — lucky companies are reaping the benefit.
Paatal Lok season two
Directors: Avinash Arun, Prosit Roy
Stars: Jaideep Ahlawat, Ishwak Singh, Lc Sekhose, Merenla Imsong
Rating: 4.5/5
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
Iran's dirty tricks to dodge sanctions
There’s increased scrutiny on the tricks being used to keep commodities flowing to and from blacklisted countries. Here’s a description of how some work.
1 Going Dark
A common method to transport Iranian oil with stealth is to turn off the Automatic Identification System, an electronic device that pinpoints a ship’s location. Known as going dark, a vessel flicks the switch before berthing and typically reappears days later, masking the location of its load or discharge port.
2. Ship-to-Ship Transfers
A first vessel will take its clandestine cargo away from the country in question before transferring it to a waiting ship, all of this happening out of sight. The vessels will then sail in different directions. For about a third of Iranian exports, more than one tanker typically handles a load before it’s delivered to its final destination, analysts say.
3. Fake Destinations
Signaling the wrong destination to load or unload is another technique. Ships that intend to take cargo from Iran may indicate their loading ports in sanction-free places like Iraq. Ships can keep changing their destinations and end up not berthing at any of them.
4. Rebranded Barrels
Iranian barrels can also be rebranded as oil from a nation free from sanctions such as Iraq. The countries share fields along their border and the crude has similar characteristics. Oil from these deposits can be trucked out to another port and documents forged to hide Iran as the origin.
* Bloomberg
War
Director: Siddharth Anand
Cast: Hrithik Roshan, Tiger Shroff, Ashutosh Rana, Vaani Kapoor
Rating: Two out of five stars
India squad for fourth and fifth Tests
Kohli (c), Dhawan, Rahul, Shaw, Pujara, Rahane (vc), Karun, Karthik (wk), Pant (wk), Ashwin, Jadeja, Pandya, Ishant, Shami, Umesh, Bumrah, Thakur, Vihari
The 100 Best Novels in Translation
Boyd Tonkin, Galileo Press
NYBL PROFILE
Company name: Nybl
Date started: November 2018
Founder: Noor Alnahhas, Michael LeTan, Hafsa Yazdni, Sufyaan Abdul Haseeb, Waleed Rifaat, Mohammed Shono
Based: Dubai, UAE
Sector: Software Technology / Artificial Intelligence
Initial investment: $500,000
Funding round: Series B (raising $5m)
Partners/Incubators: Dubai Future Accelerators Cohort 4, Dubai Future Accelerators Cohort 6, AI Venture Labs Cohort 1, Microsoft Scale-up
Omar Yabroudi's factfile
Born: October 20, 1989, Sharjah
Education: Bachelor of Science and Football, Liverpool John Moores University
2010: Accrington Stanley FC, internship
2010-2012: Crystal Palace, performance analyst with U-18 academy
2012-2015: Barnet FC, first-team performance analyst/head of recruitment
2015-2017: Nottingham Forest, head of recruitment
2018-present: Crystal Palace, player recruitment manager
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Killing of Qassem Suleimani
Profile
Name: Carzaty
Founders: Marwan Chaar and Hassan Jaffar
Launched: 2017
Employees: 22
Based: Dubai and Muscat
Sector: Automobile retail
Funding to date: $5.5 million
Tips to keep your car cool
- Place a sun reflector in your windshield when not driving
- Park in shaded or covered areas
- Add tint to windows
- Wrap your car to change the exterior colour
- Pick light interiors - choose colours such as beige and cream for seats and dashboard furniture
- Avoid leather interiors as these absorb more heat
South Africa squad
Faf du Plessis (captain), Hashim Amla, Temba Bavuma, Quinton de Kock (wicketkeeper), Theunis de Bruyn, AB de Villiers, Dean Elgar, Heinrich Klaasen (wicketkeeper), Keshav Maharaj, Aiden Markram, Morne Morkel, Wiaan Mulder, Lungi Ngidi, Vernon Philander and Kagiso Rabada.
MATCH INFO
Uefa Champions League semi-final, second leg result:
Ajax 2-3 Tottenham
Tottenham advance on away goals rule after tie ends 3-3 on aggregate
Final: June 1, Madrid
Retail gloom
Online grocer Ocado revealed retail sales fell 5.7 per cen in its first quarter as customers switched back to pre-pandemic shopping patterns.
It was a tough comparison from a year earlier, when the UK was in lockdown, but on a two-year basis its retail division, a joint venture with Marks&Spencer, rose 31.7 per cent over the quarter.
The group added that a 15 per cent drop in customer basket size offset an 11.6. per cent rise in the number of customer transactions.
The winners
Fiction
- ‘Amreekiya’ by Lena Mahmoud
- ‘As Good As True’ by Cheryl Reid
The Evelyn Shakir Non-Fiction Award
- ‘Syrian and Lebanese Patricios in Sao Paulo’ by Oswaldo Truzzi; translated by Ramon J Stern
- ‘The Sound of Listening’ by Philip Metres
The George Ellenbogen Poetry Award
- ‘Footnotes in the Order of Disappearance’ by Fady Joudah
Children/Young Adult
- ‘I’ve Loved You Since Forever’ by Hoda Kotb
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What sanctions would be reimposed?
Under ‘snapback’, measures imposed on Iran by the UN Security Council in six resolutions would be restored, including:
- An arms embargo
- A ban on uranium enrichment and reprocessing
- A ban on launches and other activities with ballistic missiles capable of delivering nuclear weapons, as well as ballistic missile technology transfer and technical assistance
- A targeted global asset freeze and travel ban on Iranian individuals and entities
- Authorisation for countries to inspect Iran Air Cargo and Islamic Republic of Iran Shipping Lines cargoes for banned goods
The specs: 2018 Mercedes-Benz S 450
Price, base / as tested Dh525,000 / Dh559,000
Engine: 3.0L V6 biturbo
Transmission: Nine-speed automatic
Power: 369hp at 5,500rpm
Torque: 500Nm at 1,800rpm
Fuel economy, combined: 8.0L / 100km
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
F1 The Movie
Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem
Director: Joseph Kosinski
Rating: 4/5
Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
November 2025
180 Petrofac employees laid off in the UAE
UAE v Gibraltar
What: International friendly
When: 7pm kick off
Where: Rugby Park, Dubai Sports City
Admission: Free
Online: The match will be broadcast live on Dubai Exiles’ Facebook page
UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)
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Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
UAE currency: the story behind the money in your pockets
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
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If you go:
The flights: Etihad, Emirates, British Airways and Virgin all fly from the UAE to London from Dh2,700 return, including taxes
The tours: The Tour for Muggles usually runs several times a day, lasts about two-and-a-half hours and costs £14 (Dh67)
Harry Potter and the Cursed Child is on now at the Palace Theatre. Tickets need booking significantly in advance
Entrance to the Harry Potter exhibition at the House of MinaLima is free
The hotel: The grand, 1909-built Strand Palace Hotel is in a handy location near the Theatre District and several of the key Harry Potter filming and inspiration sites. The family rooms are spacious, with sofa beds that can accommodate children, and wooden shutters that keep out the light at night. Rooms cost from £170 (Dh808).
Five expert hiking tips
Always check the weather forecast before setting off
Make sure you have plenty of water
Set off early to avoid sudden weather changes in the afternoon
Wear appropriate clothing and footwear
Take your litter home with you
