MAKKAH, 28 February 2008 — More than 950 shops and other commercial establishments with investments exceeding SR1 billion will be razed over the next two weeks as part of the expansion project to be undertaken in the northern courtyard of the Haram Mosque in Makkah. The area earmarked for demolitions also includes the ancient souk of Mudda.
Officials representing the Makkah Governor’s office, the Makkah Mayor’s office, the Ministry of Finance, the Ministry of Electricity have already started identifying the shops to be closed down.
“About 950 licensed shops would be shuttered in a few days,” said Ghazi Al-Harbi, president of the Gazza Municipality, according to the business daily Al-Eqtisadiah yesterday.
The rent rates in the remaining part of the zone jumped up by 200 percent following the announcement of the Ministry of Municipal and Rural Affairs about its plans to launch the expansion project to the north of the Grand Mosque recently. This is apparently because the demand for business buildings would go up once the demolitions start.
Unable to bear the burden of the sharply rising building rent, several of the businessmen have decided to leave the zone.
“I am forced to sell all my accessories in the shop as my shop would be demolished shortly. I cannot afford to move my shop to another part of the Central Zone because there the rent is very high. Therefore, now I am looking for a cheaper building at a location away from here,” said Emad Al-Qarshi. On the other hand there are other traders who are bent on remaining within the Central Zone though they have to spend a huge sum to find new buildings to pursue their business activities.
Muhammad Samarqandi, a trader who is not deterred by the demolitions, said he was determined to look for another building at a safer place in the zone to continue his trade. He hoped that he would be able to make good profit eventually even if the rent was very high because “it is the Central Zone where most pilgrims go for their shopping.”