Saudi Gazette report

 

JEDDAH — Renting a kiosk on the Corniche costs around SR220,000 annually despite the municipality setting the rent at SR75,000, Al-Madina daily reported.



Picnickers and visitors sometimes have no choice but to pay ten times the normal price for food. The expatriate workers who run the kiosks were asked why they charge so much.



It was discovered that people rent these kiosks from the municipality for SR75,000 a year then sublet each of them for around SR220,000.



The subletters are usually two or three expatriate workers who run the kiosk 24 hours and hike up the prices of food in order to be able to pay the enhanced rent.



Some visitors ensure they buy their food from malls before they go the Corniche so that they do not end up paying SR3 for a cold drink that is usually sold for half this price.



Farouk Khan, Indian national, pays around SR200,000 in annual rent for the kiosk that he runs together with two of his compatriots.



He said: “We don’t get any benefit except the monthly salary we get, which is SR2,500 for each one of us. “We have to pay SR16,000 a month to the Saudi man who rented the kiosk from the municipality and sublet it to us.”



Najeeb Muhamad, Indian, works with three of his fellow nationals in a kiosk. They have to pay SR220,000 in annual rent.



He said they must work in shifts over 24 hours in order to be able to raise the rent. “Everybody knows why we sell food for high prices.



“We have to come up with SR15,000 every month for the rent. “If the lessor reduces the rent, we can lower food prices.” One of the investors in these kiosks said the lengths of the contracts differ in that some are for five years while others can be for up to 20 years.



He said an investor has the right to do whatever he wants with the kiosk as long as he has implemented all articles of the investment contract signed between him and the municipality.



Some contracts do not say anything about subletting. Another investor who requested anonymity said the municipality usually puts up the kiosks for rent and each investor suggests a price for the rent.



The highest suggestion will be used as a standard rent price for a kiosk on the Corniche. He noted that one of the articles states that the municipality has the right to hand over the site to the investor for his disposal at the end of the contract or renew the contract.



Omar Is’haq, lawyer and legal consultant, said the municipality can only claim back the site if the contract states that the site should be handed over to the municipality after the end of the term.



Meanwhile, Jeddah Municipality spokesman Muhammad Al-Bogami confirmed that the municipality will terminate all investment contracts for the kiosks in order provide more space for visitors and use the areas for the Corniche’s expansion.



A source in the municipality said the sites of amusements parks, restaurants and chalets will be expanded to accommodate more people.