Porta Cabin City on Salwa Road
Ask any shop keeper and he would say that soaring high rents of shops are eating up their small businesses on a large scale.
That a phenomena is further set to worsen as the Govt. is launching several mega projects from this year on, that as a result would generate new demand of rental shops, whilst the low rent shop supply lines are absent.
While recognizing the contribution of small businesses, this is the time to act.
The Municipality could put up a porta cabin city at the outskirts of Salwa road on very low rent, thus injecting a timely and quick medicine to the dangerous disease of soaring rent in order to help save the small businesses.
wanted portacabin qatar 2014
Porta cabin like cubicles are prevalent here and there and even in US and China. Now porta cabins come in different sizes, shapes and styles along-with facelift similar to cemented buildings. I am sure, the authorities would take care of your fears in the Porta Cabin City.
Question: Would you allow porta cabin shops in your own home country ?
Thank Aalaa for elaborating the need of cheap rental shops. Porta cabin shops carry several advantages including proper premises or entire removal as and when needed down the road. They would definitely allow the project phase of country to sail through smoothly.
Lowering the rents would benefit the country as a whole. Many people have great business ideas but are hesitant due to the high rents. If these rents were to be regulated at a lower price, not only will the nationals benefit but also the expats; the economy of the whole country would boom and diversify. I still don't understand how small business owners are supposed to pay 20,000+ for rent, and STILL make a profit? Nevertheless all the other expenses. It would be great if they make 10 riyals per month. Sooner or later the oil is going to run out, I'd like to see them survive on this monopolistic system they've got going on..
Fubar, your points carry a good weight. However seeing the big picture where businesses sponsors are locals, who too do not get what they want from a business, if their profit is all going to pay off the rent.
Again most of the shops are owned by a few dozen real estate companies, and frankly, if known, the govt. would never allow them to take advantage of the higher rents, as the govt. wants to promote businesses that directly or indirectly give benefitd to the locals on large scale. The govt. has earmarked, Qar. 2 Billion to support the business, because they know the decisive importance of the businesses and their growth. Real Estate boom would give benefit to a few, whereas the business boom would extend benefits to millions.
That's right Thelonius. the "typical" Qatari isn't a landlord, or influential...
The difference is that in the case of China, the people who will benefit are Chinese. If you were to implement this idea in Qatar, do you think that Qataris will rent and run shops at the discount price, or expats?
So why would the government do something that will HELP expats and HURT nationals? No government of any country would do that.
If expats are having trouble making a living in Qatar, the government won't help them; the government would happily see them return to their home country.
But businesses have to diversify sooner or later for which the rental plays a very important role. How China promoted their businesses to flourish because the Govt. rented out shops on just 500 Yuan rent per month, that too with full modern facilities like AC, parking, phone/net etc. Qatar Chamber needs to visit Yiwu, a small city in China and see 100,000 shops on such a low rent, doing huge businesses, as 4,000 containers leave that city for export world wide EVERY DAY.
Be realistic. The reason shop rents have gone up is because nationals make a lot of money charging huge amounts of rent. Why would the government invest in a portacabin city so that:
Nationals who are landlords of shops will lose money
Nationals who are investing in the new malls and shops will lose money.
You are in Qatar, so the first priority of the government is to ensure that Qataris prosper at their businesses.
Brit, This time around, the porta cabin shall be having face lift and decor plus well fitted with fire safety systems, do not worry. From a collective wisdom stand point, its long term benefits for the country would definitely be enormous.
Let them go under .. Porta Cabins are an eye sore, inconvenient and safety hazard.
That is the big fish eating the small fish syndrome and generally none care (other than words as they sound too good to say and to hear) for the small fish. Vanishing of these guys will come back pinching the small salaried customers and the vicious cycle gets into the making.
BTW what is Bakalla??
2,000 Porta cabin shops can be put in place in just four/five months thus solving the problem in the quickest possible time, and there is no harm in starting them on trial basis, as the porta cabins are multi purpose and removable.
The general profit margin range between 5 to 10% and for a higher sale of Qar. 100,000, the profit is 10,000 which becomes insufficient to cover the rent, salary and other business expenses which are averaging between 15000 to 20,000 per month. Major chunk is the shop rent (over 80%).
How are they suffering? This is the richest country in the world.
Dozens of other businesses are suffering which are other than the super markets.
No one is "forcing" anyone to open a Bakalla / Shop.