High rents force engineering firms to pack & go

This goes to prove that these so called local businesses can only thrive in monopolistic environment, supported by protectionist policies. At the first hint of real competition, they are already giving up and wringing their hands in despair.

Man up, local businesses and welcome to the real world. Either shape up or ship out.

I think its a time to start selling flying cars

The reason for rocketing rent is because those dealings are not directly done between the Qatari Owner and the End user. In 99.9% of the cases there are 2-3 intermediaries in between the end user and the Qatari Owner.Each intermediary will keep a mark-up which ultimately results in high prices.Even 1/2 bedroom apartments are also sold so much high. The owners doesn't want to directly deal with end user, they just need a lump sum of amount in their pocket without any hassle which automatically create intermediaries, Govt should bring a law to eradicate these intermediaries..

.....high rents dont necessarily force expatriates to leave and go but they do force them to stay eight persons to a room instead of two and the end result is sick workers, sanitation problems and less productivity at work.

Must disagree. This will never happen ..

High rents force expatriates to pack and go..

Not good news.

Most of the construction office don't even have staff. They use it as Majlish to meet friends in the evening.

many problems can be sorted out if owners reduce their 'profit margins' and start paying 'real doers' (technical staff/consultant in case of consultancy services) some descent livable salary.

Rentals may be a smaller reason but big reason for failure is Greed and unprofessional approach of owners who start such 'consultancy firms' not because of their love for profession or expertise but on basis of greed (on how 'others' are making easy money).

The problem also occurs because many of these companies are just names with no real in-house expertise. They act as middle men and farm out the work to a third party..

their credit sales (secretly) that they allow to their neighboring residents. For example, credit sales Qar. 1500 + 200 addition, x 20 customers = 4000. Most of these sales are in small and countless amounts and none is able to do the math or its accounting. Payment is generally made on monthly basis.

If Chamber of Commerce can record the business failures along-with their root causes and submit recommendations to the govt. on quarterly basis then the govt. would definitely take business facilitating decisions.

You are welcome.

and have fun as well :)

Thanks.

It will be cheaper to do the Engineering in the UAE for Qatar and only pay infrequent visits.

http://thepeninsulaqatar.com/qatar/255239-high-rents-force-many-engineering-firms-to-close.html

Where is the article from?

Increasing rent on already high rental properties is the main root cause of wide spread business failures.

How China facilitated their business to thrive was because they provided with all the businesses very cheap shops and offices (rental ranging between US $ 1,000 to 3,000 per year in the business city of Yiwu, housing half million shops and offices, the largest in the world)

On top of high rentals, the business houses are acutely suffering from the non payment on their credit sales, mainly due to absence of any regulatory mechanism.

Even the small super markets are not able to meet their rental and salary expenses, and according an insider, they have to add up some extra on

i hope it does not affect economy..:)

As we move towards 2022 , the trend is for Qatar to award PMC contracts to major players in order to ensure that they get the quality required..

This means that many local firms will feel the pinch..