Saudi Gazette report

JEDDAH — Rich businessmen are using their influence to stop small business owners from running seaside kiosks, according to traders.



The Jeddah municipality has stopped these businesses from trading on the seaside and will now auction them off.



These kiosks represented ideal investments for small-income investors, the traders said.



Bidding is expected to start at SR5 million for each kiosk. If implemented, this decision will force many small businesses out of the market.



The traders told Al-Madinah newspaper that many traders contacted the municipality and asked for the starting bid to be reduced.



However, municipality officials reportedly did not listen.



These kiosks overlook the sea and represent an attractive investment, especially as an ongoing Corniche refurbishment nears completion.



An influx of visitors to the Corniche is expected after 18 months of closure.



Small business owners said many of them do not have the necessary capital to participate in these auctions and will be forced to close down.



Darweesh Al-Khadra, deputy president of the Jeddah Chamber of Commerce’s hospitality committee, said small business owners, many of whom are young, have suffered from this decision.



He said a small business owner was closed down and fined by the municipality, as he was not able to participate in the auction.



He questioned the municipality’s decision in view of the limited financial resources of such traders.



There are reports that big business owners will invest in these small projects, he added.



Al-Khadra pointed out that some traders have complained to the committee that this decision will inflict great losses on them.