DOHA: The Advisory Council, in its ordinary session yesterday, recommended continuing the freeze on rents for commercial properties by extending the validity of the relevant provisions in the current law for another two years.
The law, which came into effect in February 2008, is to expire next month. The law aimed to tackle the inflationary trend in the country at that time, and imposed a two-year freeze on rents for both commercial and residential properties.
The majority of the participants in the Council's session voted for the recommendation. The meeting was chaired by Mohammed bin Mubarak Al Khulaifi, the Advisory Council chairman.
The move comes in the context of rising rents for commercial properties. While rents for residential properties are on the decline, mainly due to an increase in supply, the same has not happened in the case of commercial properties.
On the contrary, rents for such properties have been showing an upward trend as the supply is not keeping up with the demand.
Yousul Al Khater, a Council member, while taking part in the discussions, said if the freeze on rents was removed it could cause a further rise in the rents for commercial properties.
He noted that many property owners had already served eviction notices to their tenants, anticipating a change in the law on completion of the two years.
Rashid Al Madadi, another member, pointed out that demolition of several traditional markets in Doha was a major contributing factor to the continuing shortage in supply of commercial properties.
The Advisory Council's Financial and Economic Affairs Committee, meanwhile, held a meeting with the Minister of Economy and Finance, H E Yousuf Hussein Kamal, to further discuss the issue of huge bonuses granted to boards of directors of banks and public shareholding companies.
The minister, who is also chairman of the Qatar Financial Markets Authority, explained to the Committee members the Authority's point of view on bonuses and allowances, and answered their questions on this issue.
The panel decided to further discuss the issue in another session of the Council to be held soon.
By Mohammed Saeed
© The Peninsula 2010
