Last week, a short video that went viral showed the closing of shops at Bahrain’s main shopping centre, the City Centre, to the disappointment of shoppers and visitors alike. However, it should not be surprising. Months ago, a similar video showed rows of closed shops in Bukawara, East Riffa’s main shopping area. Some with ‘closed’, ‘for rent’, ‘closing, everything must go…’ posted on their main doors. Such public announcements are harbingers of death to businesses.
Owners of these outlets have decided to terminate their activities due to various reasons – but most likely related with issues of discrepancy between their expected profit and expenditure.
Businesses keep expenses as low as possible and maximise marginal profit, to continue their activities, and employ workers.
Of late, businesses in Bahrain have been complaining of the rising cost of outlet rents and particularly, the exponential increase of utility bills (electricity and water), which appear to have reached a stage where it has paralysed overall business activities.
Rumour has it that a large number of expats are leaving Bahrain due to the high cost of utility bills and hundreds of ‘flats or villas to let’ have remained vacant. Yet the Electricity and Water Authority has done little, if anything, to alleviate the situation.
As we witness an exodus of expatriates, businesses are also leaving Bahrain. So what will be the future of business activities in Bahrain? Is there time to revise things to keep the mantra of business friendly Bahrain on track to attract investors?
Bahrain has no shortage of customers. In addition, the number of tourists coming to the kingdom along the causeway has reached millions and I believe that, most if not all, must have visited the City Centre due to its famous activities and central location. Thus, shops are expected to enjoy maximum profits.
However, shops are not surviving, let alone, being profitable. Immediate action should be taken to find out what is happening to businesses that are closing. The authorities concerned need to take urgent action to reverse the situation, including lowering rents and utility bills to make the businesses profitable and employ job-seekers.
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