*Luxury watchmaker says no decline in Q1 Mideast sales
*Sees 2009 sales rising, could be as much as 5 pct
*Launches flagship store at world's largest shopping centre By Tamara Walid
DUBAI, April 28 (Reuters) - Patek Philippe, one of the last major independent Swiss watchmakers, said sales in the Middle East could grow as much as 5 percent this year despite the global economic crisis, as demand in the region remained high. Geneva-based Patek, which makes classical watches that start at $7,000, is launching a flagship store at Dubai Mall, the world's largest shopping centre, on Tuesday. It already has an outlet in another luxury mall in Dubai.
"We don't see a decrease so far [in sales] and I don't think we will see that in the Middle East because the demand for Patek Philippe was always very high in the region," Thierry Stern, the company's vice president told Reuters in an interview on Monday.
"I think sales will rise this year. The figures should be the same as 2008, maybe 5 percent more," he said. "We don't feel the crisis here."
In March, Patek Chairman Philippe Stern told Reuters he expected global sales to fall about 10 percent this year.
Most of the world's biggest jewellers and watchmakers posted falls in 2008 sales and profits as the global crisis hit demand. Exports of Swiss watches accelerated their decline in March, with sales in the key markets of Hong Kong and the United States dropping fast as spending on luxury items shrank, data from the Federation of the Swiss Watch Industry showed last week.
Activity in Dubai's retail sector, generating a third of the country's gross domestic product, slowed sharply as the crisis hit the emirate and ended a six-year boom that saw a sharp increase in mall space.
But Patek still fairs better in Dubai, one of seven emirates comprising the United Arab Emirates, than other locations such as Japan, Russia, U.S. and Spain, Thierry Stern said.
Patek makes 40,000 watches a year for its 500 points of sale globally. Almost 10 percent of this figure goes to the Middle East, where there's "good appetite for Patek", said Stern. "Dubai but also the whole Middle East is very important in terms of people who enjoy buying expensive models," he said. "It's not possible to supply the demand; demand is much higher."
Stern said the region was home to a significant number of knowledgeable watch collectors.
"We have a big amount of very important collectors...who are really building their collection through maybe 10 to 40 years."
Patek watches, often featured at auctions worldwide, will be offered for sale in Christie's Dubai auction on Tuesday. Christie's estimates one lot to fetch between $50,000 to $70,000.
"Today, for collectors, this is a good time to buy pieces at auctions because prices are lower," said Stern.
For unique watch orders, the company has reduced the waiting period from two years to one year for delivery. (Reporting by Tamara Walid; Editing by Erica Billingham)