JEDDAH, 9 August 2005 — The construction of Jeddah’s much needed sewerage system will ease the problems of waste in the city. Its construction is however causing severe economic problems for retailers and businesses which are afflicted by the earthworks near their premises.
Some stores report income down by as much as 80 percent compared with pre-construction months.
The problem is further compounded by some of the construction companies not completing the pipe-laying within the specified time, further increasing the financial losses to business.
Shop owners with outlets blocked by construction works complain that if the situation continues to remain like this for a long time that they will face bankruptcy. They blame the municipality for not closely monitoring the construction companies.
Shops owners say that losses continue because the construction works seriously reduce parking space and very often, pedestrian access.
Shop owners say that they have tried to minimize their losses by talking to building owners to lower their rent but building owners insist that the construction works are not their problem and that retailers should honor their contracts.
The shops near prince Abdullah bridge project are particularly hard hit. For three years, businessmen suffered losses of over 70 percent of their monthly income. Many businesses abandoned their shops and relocated elsewhere. One shop retailer with two shops, one near the construction site and another elsewhere, said that he had to close the one near the road works because he could no longer afford to subsidize the losses from his second unit income.
“We understand that these projects are good for Jeddah in the long run,” shop owner Saleh Al-Ghamdi said. “If it was done to save Jeddah from underground water that is fine. Shouldn’t the municipality pay some compensation for shop owners from the losses they suffer? It is not fair that the project is taken longer time to finish, the revenue dropping down to more than 70 percent and the building owners refusing to take down the rent.”
Another said that he frequently asked the owner of the building to cut down rent to 50 percent but was refused.
In other locations north of Al-Sahafa Street the construction works are less damaging to local business. Akram Ali, Egyptian worker in a pharmacy said that even so, the construction cut down the number of customers by more than 50 percent.
“Customers try to come to my store but because it is difficult to find car parking space because of the project. Customers just go to another pharmacy since there are many available. The situation will be better when the project is finished; it is a small project to install underground pipes and not a big one like the prince Abdullah Bridge.”