Gold Souq shops urge 6-month rent waiver
Even after flights do start, retailers do not expect to see tourists coming immediately
Business Editor
Jewellery retailers at Dubai’s Gold Souq are calling on their landlords to offer a six-month waiver on rents — until tourist shoppers return in strength to the centre of UAE’s gold trade.
And for next year, these landlords should consider up to 50 per cent reductions on rents. Retailers say it’s the bare minimum requirement to ensure they survive through this crisis.
“There are no incoming flights as yet — and even after flights do start, we do not expect to see many tourists coming,” said Anil Dhanak, managing director at Kanz Jewels.
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“Our sales to tourists from the Gold Souq store stood at 93 per cent last year.
“This figure is based on the numbers who bought from our store and then claimed VAT (value added tax) refunds at the airport. Other retailers at the Gold Souq too would have more or less similar numbers — that location is a must-see for a majority of visitors to Dubai and it
will return to being that.
“But it will take time for that to happen — and we will need some support from landlords to see us through this period.
“We certainly do not expect to make sufficient revenues with the remaining 7 per cent of local buyers as they will look to any jewellery purchase as a last preference and only after all their essential needs are fulfilled.”
How much is rent?
A single-shutter store of 300-400 square feet currently starts from about Dh500,000 annually. Retailers typically operate multiple locations within the Souq.