Bahraini officials are to increase rents in an industrial area on the island state by as much as 6000 percent, in a bid to stem accumulated losses due to rates previously being too low.
Bahrain’s Municipalities and Agriculture Affairs Ministry is planning the rate hike at the industrial area in Hidd, the Akhbar Al Khaleej newspaper said.
The ministry previously received nominal rent for space from contractors at the site and said it was not enough to cover ongoing losses, officials said.
The new rental levels will come into effect when current leases expire and will help raise revenues for the area to BD2m ($5.28m) a year, up from previous levels of around BD25,000, the ministry said. A total of 51 contractors at the site will be impacted by the decision.
The move comes at a time when the kingdom is battling anti-government unrest and is eager to maintain its reputation as one of the Gulf’s leading trade and business hubs.For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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