JEDDAH: Mall owners have refused to renew the contracts of shops selling readymade garments because they fear they will default on their rental payments because of stiff competition from international brands and the growth of online shopping, said an online media report Monday.
These owners and investors are now moving to shops where they pay less rent along main roads, many of which are unsuitable for their businesses. Others are also planning to do so.
Mohammad Alawi, chairman of the committee on commercial centers at the Jeddah Chamber of Commerce and Industry (JCCI), said this was not an issue about higher rentals. Many investors cannot compete with wholesalers bringing in top brands, who also offer huge discounts on their clothing. The committee would soon meet with some mall owners to discuss the issue, he said.
Badr Jala, in charge of contracts at one mall, said malls try to attract the world’s top brands to make investments in their facilities, based on how many people visit annually. Every year, new terms and conditions are drawn up, which investors can either accept or reject, he said.
He said companies supplying ready-made garments cannot compete with international major brands that often offer 50 percent discounts on their products. In addition, some customers have complained of the poor quality of readymade products made in China, Thailand and India.
Hahim Al-Sharif, a member of the garments committee at the JCCI, said some malls now refusing to renew contracts were established 12 years ago, before the entry of major brands. He said these contracts have not provided any protection to investors and stipulate 20 percent annual increase in rent. These malls make up to SR600,000 a year in rentals, he said.
He said the creation of social media and other communication platforms have resulted in many customers shopping online.
Loan default fears: Malls reluctant to renew garment shops’ contracts
Loan default fears: Malls reluctant to renew garment shops’ contracts
Saudi, Pakistan defense chiefs discuss ‘measures needed to halt’ Iranian attacks on Kingdom
RIYADH: Saudi Defense Minister Prince Khalid bin Salman and Pakistan’s Chief of Defense Forces Asim Munir discussed Iran’s attacks on the Kingdom, amid the escalating military conflict in the Middle East.
“We discussed Iranian attacks on the Kingdom and the measures needed to halt them within the framework of our Joint Strategic Defense Agreement,” Prince Khalid wrote on social media early on Saturday.
“We stressed that such actions undermine regional security and stability and expressed hope that the Iranian side will exercise wisdom and avoid miscalculation.”
The US and Israel began a large-scale military campaign against Iran on Feb. 28. Iran has since attacked a number of sites across the Gulf.
Tehran has also attacked US and Israeli military assets as the war as escalated, impacting lives in the peaceful Arabian Gulf peninsula and risked shaking the global economy as Iran continued restricting energy shipping along the Strait of Hormuz.
The Saudi Defense Ministry said a number of drones had been shot down that were targeting the Shayba oil field in the Empty Quarter on Saturday.
A drone attacked the US embassy in Riyadh on Tuesday causing a minor fire, but no one was hurt in the incident.
Saudi Arabia and Pakistan signed a “Strategic Mutual Defense Agreement” in September, pledging that aggression against one country would be treated as an attack on both.
Separately, Prince Abdulaziz bin Saud bin Naif, the Saudi interior minister, received a call from his Pakistani counterpart Raza Naqvi, who condemned the blatant attacks targeting the Kingdom and affirmed his country’s solidarity in confronting any threats to the Kingdom’s security and stability, the Saudi Press Agency reported on Saturday.
