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Rent rise shock for Manama suq traders

Manama, April 17, 2011

A group of traders in the Manama suq, already suffering from the effects of the recent unrest in Bahrain, say they have received letters from landlords asking for a 10 per cent increase in rents.

'This is totally unjustified and uncalled for,' said a trader, who has received the letter.

'Here we have been reeling under the impact of the crisis and asking for many levies to be cut and meanwhile, we receive this notice.'

Our sister newspaper Gulf Daily News (GDN) reported on Saturday that the Bahrain Chamber of Commerce and Industry (BCCI) had thrown a BD300,000 lifeline to small and medium enterprises (SME's) in a bid to help the industry revive.

The trader, who didn't want to be named, said the notices were received, coincidentally, immediately after a GDN report on traders suffering from the impact of rents was published last Sunday.

'Traders in at least two buildings have received the notices,' he told the GDN.

'It is entirely a coincidence that the notices were received after the publication of the report, but we would have thought under the present circumstances, the rents would at least not be increased.

'We have had virtually no business for more than a month and are anticipating it to be slow for another few weeks at least. Under the circumstances, we need help, not another burden.'

Another trader said he has been verbally told there was going to be an increase in rents soon.

'We have been told to brace ourselves for the increase, possibly from next month,' he said.

The trader, who deals in garments, claimed it was the landlords' office staff that was responsible.

'In many cases, landlords do not even know what's happening and they depend on their staff,' he said.

However, the trader said the BCCI should take cognisance of the matter and try and take remedial action.

'We are very happy with the Labour Market Regulatory Authority (LMRA) levy being suspended and have been told other levies' suspension or scrapping is also being considered,' he said.

'But when we expected a relief in rents' payment, we instead get notices on the increase. We find it a lot more difficult.'

The traders, mostly dealing in readymade clothing and accessories, say they have had no customers since businesses reopened on March 20, after a week of closure following the security forces' action against protesters.

Many of the businessmen earlier said they were unable to pay their rents after seeing trade in the area come to a standstill following the occupation of the GCC (Pearl) Roundabout in mid-February.

Some shops resorted to offering 50 per cent discounts and closing down sales in a bid to boost customers.

But the suq became a virtual ghost town as a result of the protests, as well as attacks on Asians in Manama by anti-government protesters.

Businessmen had appealed to building owners to accept delayed rent payments, but the response they said had been threats of legal action.

They said one of the main reasons for the drop in business was the lack of visitors to Bahrain as a result of recent turmoil.

They said earlier that restrictions on people crossing the King Fahd Causeway from Saudi Arabia were not helping.

BCCI retail and traditional markets committee head Jawad Al Hawaj said he was aware of the several problems traders were facing, but that he was not aware of the rent increase notices.

'I have to visit the area to take stock of the situation and will look at all the issues,' he told the GDN.

Al Hawaj earlier said he had received several representatives from various sections to help them and had communicated their concerns to the authorities.

He said the retail industry had suffered a 70 to 80 per cent loss in business at the height of the crisis, adding it was crucial for the situation to return to normal as soon as possible.-TradeArabia News Service




Tags: rents | retail | Shopping | unrest | traders | protests | Manama suq | small businesses |

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