BY MOHAMMAD SHOEB
News of a plan for building a commercial complex and two hotels on land where Souq Haraj is located is giving sleepless nights to the hundreds of shopkeepers operating there, especially those who have recently invested millions of riyals in establishing new businesses.
Souq Haraj, Qatar’s only market for used goods and a major landmark in the Najma area, is over 23 years old. The market deals in all kinds of second-hand goods, home and kitchen appliances, electronic items, utensils, air conditioners, furniture, curtains and carpets.
Due to its strategic location, it is visited by all kinds of people, including expatriates and locals, and the lure of a good bargain draws many low-income workers and limited-income families to the market.
But with the opening of big malls and furniture showrooms and the availability of competitively priced goods elsewhere, the market for used goods has lost its charm of old, forcing traders to deal in new goods. The place now houses shops selling a wide range of new goods, including furniture, garments, textiles, hardware and electronic items, with groceries and restaurants also located there.
There are 400-odd shops in the market, of which nearly 70 percent deal in new goods. A large number of these businesses have recently shifted there from Souq Faleh, Souq Ahmad, Musheireb (National area), Sofitel, Barwa Village and other places, either because their old premises faced demolition to make way for infrastructure or redevelopment projects or had a low turnout of customers.
In the process, these businesses were destabilised and suffered many problems, including huge monetary losses. Many of the traders are struggling to establish their businesses in the Souq and were hoping to gradually recover their losses.
But now, according to media reports, the market might soon face bulldozers to make way for a huge and posh commercial avenue and a twin-hotel complex.
“Earlier, my shop was located in Souq Faleh. I was served a notice to vacate the shop. So I had to spend about QR600,000 to acquire space for these two shops, (now merged into one) and I spent another QR70,000 on renovation. Ever since I read the news about future plans for this market, my mind stops working when I think about it,” said the owner of a garment shop.
The market is owned by Sheikh Faisal bin Qassim Al Thani, chairman of Faisal Holding. The company has given the shops on lease to Qataris subject to annual renewal of contracts. Most shops are run by Asian expatriates, the majority being Bangladeshi.
As local laws do not permit expatriates to own commercial property or run businesses in their name, the shopkeepers have entered into an understanding with Qataris, who have leased the shops from Aamal company, a listed real estate giant and a subsidiary of Faisal Holding.
Shops in the market vary in size and rent. About 14 years ago, a standard size shop (eight metres by four metres) was available for QR1,200 a month, subject to annual renewal with a 10 percent hike in rent. The monthly rent for a shop of the same size is now QR7,500.
Over time, as demand for shops grew, the lessees minted money by transferring the lease to newcomers who paid hefty sums, but with no legal documents to reclaim the amount paid. The shopkeepers are thus subtenants of tenants, so they can be asked to vacate the shops at a short notice by the property owner.
“In 1999, we paid QR220,000 for this shop. A few months ago, I received an offer of QR300,000 for it. Since the future of this market is very bleak, I don’t think anybody will be ready to pay that much anymore. And sadly, none of us have any papers to make claims for the amount we paid to the original tenant,” said one of the partners in a furniture shop.
A senior official of a private company that opened a power tools showroom three years ago in the Souq, said, requesting anonymity: “We invested over QR3m in this new showroom, including QR550,000 we paid to the Qatari owner and QR50,000 to Aamal Company (for transfer of lease).
“Like our company, there are hundreds of individual shopkeepers who have paid nearly QR300,000 for each shop,” the official said. “It is like buying property without any ownership rights. We developed the showroom from scratch. If it is demolished tomorrow, it will be a huge loss as we have not recovered even 10 percent of the investment.”
The owner of a garment shop from the southern Indian state of Kerala had his own tale of woes. “Five years ago, my shop remained shut for more than nine months due to road expansion in the Sofitel area, and later I faced a demolition drive. Then I hunted for several months for a new shop and finally shifted my business to Souq Haraj, and I am still striving to recover the losses. Ever since I learnt about the planned demolition, it is like a nightmare for the entire family,” he said.
“I thought of renting out a portion of the shop to a currency exchange company, hoping to recover some of the losses, but since the shop does not have a concrete ceiling (it is made of a tin sheet), it is not suitable for such sensitive businesses,” he added.
A Bangladeshi shopkeeper who sells used air conditioners said, “We read about the proposed demolition in newspapers, but so far have not received any notice from the authorities. But everyone associated with the market is worried about their business and livelihood”.
Traders are not the only ones worried.
“Since the time news about the plan for the market appeared in the local media, demolition has become a buzzword here. Everyone associated with the market is talking of his plan in the absence of the Souq,” said a Pakistani driver who owns a pickup and has been earning his livelihood from the market for over a decade.
Some traders in the Souq deal in used and new goods. They buy old furniture, repair and re-paint it, then sell it at a price 30-40 percent lower than the market price for a similar new item.
“I have been in Qatar for 31 years and running a business since the inception of this market, and never faced any problem. To be honest, I am indebted to this country. I could not get a proper education, but thanks to this business three of my children are studying here in a very good school, and the fourth one will join them next year. However, if this market is demolished, I wonder how I will manage,” said a Bangladeshi shopkeeper dealing in used and new furniture.
He said the market provided all kinds of goods and services at affordable prices and thousands of people, including carpenters, plumbers and drivers, were making a living from it.
He suggested that if the market was demolished it could be redeveloped on the outskirts of Doha with the same name. Due to its “inherent merits and special features” it would get established within a few years, he argued.
“There is no need to keep the Haraj market in the heart of the city. Even if it is shifted to the Industrial Area or somewhere near Abu Hamour, over 60 percent of the existing customers will continue visiting it. But rents should be affordable, otherwise our prices will not be competitive against those of malls and big markets,” said a shopkeeper who sells curtains and accessories.
“We would be building a huge commercial complex on the land where Souq Haraj is located, and the complex would also have two hotels,” The Peninsula reported Sheikh Faisal as saying earlier this month.
The ambitious project, according to him, is part of his company’s efforts to add to infrastructure facilities being developed by the country in preparation for the 2022 Fifa World Cup.
Sheikh Faisal said shops in Souq Haraj will be shifted to another location. He didn’t, however, give details.
Some customers as well as a large number of the shopkeepers are of the view that if the market is relocated far from the city it will lose its attraction, particularly due to the distance and the higher cost of ferrying goods.
“If we are shifted to a new market, we will lose our old and captive customers. The new shops will be more expensive, pushing up the overheads. We will no longer be able to sell at prices that are attractive enough for customers,” said a shopkeeper.
A customer who has frequented Souq Haraj for 12 years, said: “The market has lost its charm for me. There are very few shops that deal in used items. Those that do, sell overused or substandard products at very high prices. And some of the shopkeepers have become rude. So I am not worried about the news that the market is going to be demolished.”
Other customers had contrasting opinions, saying that goods and services there were much cheaper than elsewhere.
“For me the market is very beneficial. I source old air conditioners, all kinds of used doors, windows, carpets, curtains and many other items at less than half their original prices. If the market is demolished, I’ll have to buy new goods at much higher prices, which will definitely have a negative impact on my profit margin” said Abdul Jabbar, who owns a company that sublets villas and apartments.
The Souq also has a seamy side. It was notorious for selling pirated CDs and DVDs of popular films and songs, and a massive raid by anti-piracy officials late last year had led to the seizure of huge stocks of pirated software.
The market has at times doubled as a venue for illegal vendors selling all kinds of household appliances, and many were removed by authorities a few years ago. Duplicate (usually Chinese-made) products such as wristwatches, mobile phones and other counterfeit items can still be spotted being sold in the market by hawkers.
THE PENINSULA
