At least four shopping malls in Saudi Arabia have just granted a rent reprieve to retailers and other tenants in view of the financial impact caused by the coronavirus pandemic.
Swicorp, the fund manager of Swicorp Wabel Real Estate Investment Traded Fund (REIT) said on Tuesday its board has decided to exempt eligible merchants at its four commercial complexes from paying rent for more than a month, from March 17 to April 30, 2020, or until the establishments are allowed to reopen.
Last month, the kingdom ordered the closure of shopping malls across the country until further notice to help contain the spread of coronavirus.
As of Tuesday, Saudi Arabia had nearly 5,000 coronavirus cases, with 65 deaths and 805 recoveries.
Retailers, including restaurants, cafes and other non-essential businesses, have been among the hardest hit by the coronavirus pandemic. Government-mandated closures have sent millions of workers home, knocking out businesses and causing severe economic pain to both entrepreneurs and employees.
According to Swicorp, the decision to waive rental payments will benefit “certain eligible” tenants that are “most affected” by the disruption in business.
Tenants with shops still open, including pharmacies and supermarkets, are excluded from the rent-free offer.
