Loan default fears: Malls reluctant to renew garment shops’ contracts

Companies supplying ready-made garments cannot compete with international major brands that often offer 50 percent discounts on their products. (AN photo by Khalid Al-Khamis)
Updated 21 June 2016
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Loan default fears: Malls reluctant to renew garment shops’ contracts

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.


Iranian regime continues to feed sectarianism: Saudi deputy defense minister

Updated 24 April 2019
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Iranian regime continues to feed sectarianism: Saudi deputy defense minister

  • “We have to choose between the chaos that Iran spreads and stability, security and development,” he said
  • A delegation led by Prince Khalid bin Salman bin Abdulaziz, the Saudi deputy minister of defense, has arrived in Russia for an official visit on Tuesday

DUBAI: Saudi Arabia’s Deputy Defense Minister Khalid bin Salman said the Iranian regime continues to feed sectarianism and disrespect international laws at the eighth Moscow Conference on International Security on Wednesday.

“We have to choose between the chaos that Iran spreads and stability, security and development,” he said adding that “Iran is spreading chaos in the region through destruction and bloodshed, and by supporting the militias of Hezbollah and Houthis.”

“Houthi militias continue to violate the resolutions of the Security Council and the Stockholm Agreement, ignored UN resolution 2216 and the Gulf initiative…our goal is to achieve stability for Yemeni citizens under a legitimate government,” he said.

The deputy defense minister also said that the Kingdom is witnessing today an unprecedented transformation and development to achieve the vision 2030.

A delegation led by Prince Khalid bin Salman bin Abdulaziz, the Saudi deputy minister of defense, has arrived in Russia for an official visit on Tuesday, during which the members will take part in the eighth Moscow Conference on International Security and hold a number of meetings.

Prince Khalid was welcomed by Saudi Ambassador to Russia Dr. Raed Qurmali, military adviser Maj. Gen. Talal Al-Otaibi and Military Attache Gen. Mohammad Al-Mutairi, along with the deputy chief of staff of the Russian defense ministry and other civilian and military officials.