Reckitt halts production in Bahrain amid Middle East conflict: DJ

Reckitt halts production in Bahrain amid Middle East conflict: DJ

Reckitt Benckiser Group PLC has temporarily suspended manufacturing operations at its Bahrain facility and instructed Middle East employees to work remotely due to escalating regional conflict, according to reports. The consumer goods company also halted all business travel to the Middle East, joining a growing list of multinational corporations adjusting operations amid heightened geopolitical instability. This follows missile strikes and airport closures disrupting trade and tourism across key markets, including the United Arab Emirates, Saudi Arabia, and Bahrain.

The conflict has triggered widespread business disruptions, with luxury retailers such as Kering (owner of Gucci) closing stores in the UAE, Kuwait, Bahrain, and Qatar, while Chalhoub Group—operating 900 stores for brands like Versace and Sephora— reduced staffing to "voluntary" levels in several markets. Apple and H&M have also shuttered stores in parts of the region.

The Middle East, a critical growth market for luxury and consumer goods, accounts for 5-10% of global luxury spending. Analysts estimate that a month-long disruption to the $5-6 billion travel retail sector could result in hundreds of millions of dollars in lost revenue. Reckitt’s Bahrain production halt underscores the broader risks to multinational corporations reliant on regional supply chains and consumer activity.

Reckitt did not immediately provide further details on the duration of the Bahrain facility’s closure or potential financial impacts. The company’s 2024 annual report emphasizes operational resilience strategies but does not address current conflict-related disruptions.

(https://www.reuters.com/world/middle-east/global-brands-shut-middle-east-stores-conflict-causes-chaos-2026-03-02/): Reuters, Storyboard18
(https://www.storyboard18.com/how-it-works/middle-east-conflict-hits-retail-hubs-as-luxury-brands-close-stores-amazon-halts-deliveries-tourism-stalls-91211.htm): Storyboard18
(https://www.reckitt.com/investors/latest-annual-report/): Reckitt 2024 Annual Report