Jobs are at risk after traders in and around Bab Al Bahrain were hit with a 10 per cent rise in rents, it has been claimed.

Businessmen say negotiations with landlords broke down and they were told to pay up or move out.

'We have agreed to pay because we cannot afford to move from where we have been for years,' said one trader, who did not want to be named.

'It will surely be difficult for us to carry on under the circumstances but we have no choice.'

The trader, who runs a readymade garments and an electrical business, said shop owners had requested a moratorium on rents for a few months until the situation in Bahrain improved.

'However, instead of agreeing to our request, we got letters informing us of a rent increase,' he said.

'Though we have agreed to pay, I fear we shall have to cut corners, including asking some of our staff leave.'

Another businessman, who also has a readymade garments business, said he had been forced to send staff away on compulsory leave.

'I have to survive in this market even if it means suffering some inconvenience,' he said.

'I can see the situation is improving somewhat in the last few weeks but we have a long way to go.'

Businesses in the Manama suq have been among the hardest hit by the political turmoil with customers avoiding the area and armed gangs previously attacking their shops.

Many said they had been 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.

Our sister newspaper Gulf Daily News (GDN) earlier reported some shops resorted to offering 50pc discounts and closing down sales in a bid to woo 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.

Bahrain Chamber of Commerce and Industry (BCCI) retail and traditional markets committee head Jawad Al Hawaj said traders were facing severe problems.

He said they had received representations from all sectors and had passed those concerns, including about rent rises, on to the authorities.

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