Saudi investors with $2.66bn in Jeddah threaten to shut down

Saudi investors controlling more than SR10 billion (USD2.66 billion) in industrial and commercial projects in the second largest city of Jeddah are threatening to shut down their business after they were told rents for their warehouses were hiked by more than six times, newspapers reported on Thursday.

The Jeddah Chamber of Commerce and Industry, which oversees the warehouse business for the Jeddah port authority, told the investors that they have now to pay SR90 ($24) per metre a year instead of SR14 ($3.7) per metre.

The warehouses are rented by owners of factories and other businesses in an industrial area in the Western Red Sea town, with their investments exceeding $2.66 billion.

Speaking on behalf of the investors, Saleh Bashanfar said they have sent a complaint to King Abdullah after the Chamber rejected their demand to lower the rent.

“We warn the chamber that raising the rent to SR90 without any justification will push most of the investors to shut and leave.

“This decision will also certainly lead to large increases in the prices of items to the consumers,” he told local reporters.

He said the investors now want the Jeddah Chamber to “take its hands off” the warehouses and return them to the port authority.