A planned rent increase at the Manama Central Market has been suspended for two years after traders complained their pockets had already been hit by a drop in business.

The decision was announced yesterday by Capital Trustees Authority director general Shuwqia Humaidan.

It follows a written plea by merchants, who argued they could not afford higher stall rents.

“The current business situation requires us to slow down any plan to increase rents, as the market is the nucleus from which foodstuffs are circulated across the country – whether to Muharraq or Hamad Town,” said Ms Humaidan.

“We have had significant rent increases over the years, but we can’t raise it by 500pc from what we charged two decades ago.

“I can’t drag the market, which is the central source of food sustainability in this country, into doom.

“From here we need to balance our approach, instead of unnecessarily getting tough.”

Traders rent stalls at the market for a period of two years and were initially facing rent increases upon the next renewal of their lease.

However, the decision to delay means their next lease renewal will be at the existing rate.

The rent increase is then scheduled to be applied from late 2021.

A decision to push back the rent hike was taken after it emerged there were still outstanding rents of BD213,751 owed by traders, dating back three decades.

On the current rates authorities should be banking a total of BD52,180 every month from 173 merchants who rent stalls at the market.

Twenty-five stalls are still operating despite their previous contracts expiring.

The Capital Trustees Board has backed the decision to delay the rent increase, which will be referred to Works, Municipalities Affairs and Urban Planning Minister Essam Khalaf for ratification.

This is despite its vice-chairwoman, Aziza Kamal, saying that merchants were benefiting from low monthly rates.

“If those traders decided to leave, which they will not do, several others are interested in taking over their space,” she said.

“Those traders are not poor. They occupy a prime location but, despite the low rents, they are not paying and huge sums are still owed.

“We are giving them a reprieve, but it’s the wrong approach for managing the market.”

However, board financial, administrative and legislative committee chairwoman Khulood Al Qattan argued a balance needed to be struck given current economic uncertainty, explaining that higher rents would result in rising costs of goods.

“We need to balance rents and ensure the costs do not go up for the public,” she said.

“That’s why we recommended stopping the rent increase.

“We should be flexible because it affects the foodstuff market and related services.

“Legal action to collect late payments, besides other possible measures, are in process.”

Those sentiments were echoed by board chairman Saleh Tarradah.

“If rents increase so will the cost of commodities, it is as simple as that,” he said.

“No-one wants that. We just need to stabilise the market for the time being as we assess future options.”

mohammed@gdn.com.bh

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