Living costs ‘hit QR29,000 for expat families’
via Gulf-Times
Published: Thursday, 1 February, 2007
AN EXPATRIATE executive requires QR29,000 a month to maintain his family in Qatar now, a QNB report has said highlighting the exorbitant rise in living costs in the state in the recent past.
In its latest report entitled ‘Doing business in Qatar’, Qatar’s largest bank said an executive bachelor needs about QR12,000 for monthly living.
QNB said it has not taken into account large-scale entertainment and travel expenses while compiling the report.
It said a married couple with two children require about QR12,000 a month for rent and utilities. For monthly food and domestic requisites, they require QR6,000.
They need to set apart QR1,500 a month for transport and communication expenses.
And to meet the school fees and other educational expenses of their children, they need about QR5,600 a month. Their clothing and sundry expenses have been put at QR2,300 a month.
While clubs and sports activities take about QR900 from them a month, they need to set apart QR700 monthly for healthcare, the QNB report said.
In the case of an executive bachelor, QNB said QR6,000 was required a month for rent and utilities. For food and domestic requisites, an executive bachelor requires QR3,000 a month. The monthly transport and communication expenses for such a person have been put at QR800.
While he requires QR600 for clubs and sports activities, his clothing and sundry expenses have been put at QR1,100 a month. An executive bachelor needs to set apart QR500 a month on healthcare, the QNB report said.
Apparently, higher living costs are a direct result of inflation, which has gone up to 8.2% in the first half of 2006 from around 2% in 2000.
Soaring rent has been the main driver of inflation in Qatar in the last few years. Until about 2000, the annual rate of inflation hovered around 2%.
In 2005, the rate of inflation was 12.62%. And in 2004 it stood at 8.48%.
Essentially what inflation means is that the value of the money goes down and it takes more to buy commodities and services. Therefore an 8.2% inflation rate means that the price level for a given year has risen 8.2% from a certain measuring year. Clearly a consumer’s purchasing power loses with inflation.
Recently, HE the Minister of Finance Yousef Hussein Kamal said the government wished to see the rate of inflation being brought down to 6% this year for which a high-level committee had already been formed.
Many analysts believe the only way to rein in inflation is to contain rent spiral for which a multi-pronged approach becomes inevitable. Key to this will be the provision of adequate commercial space and residential units, which are still in short supply in Qatar.
Although the number of buildings that have been demolished across Qatar between 2000 and 2005 is not immediately available, many analysts say it is highly unlikely that new units will be coming up at all the respective locations.
According to the Planning Council, the number of building permits issued in Qatar in 2005 was 6,124 in place of 4,821 in 2004, 3,911 in 2003, 3,874 in 2002, 3,556 in 2001 and 3,368 in 2000.
The number of building permits issued within Doha Municipality in 2005 was 6,124. The building permits issued in the capital city in 2004 was 1,930. In 2003 it was 1,581 and 1,579 (2002), 1,545 (2001) and 1,445 (2000).
“The real estate sector still gives an impression that there is not enough commercial space and residential units. Particularly, quality housing at affordable rates hardly exists for the low and middle income group,” a senior banker recently told Gulf Times.
A destabilising effect of inflation, the analyst said, was that some people choose to speculate heavily in an attempt to take advantage of the higher price level.
“Because some of the purchases are high-risk investments, spending is often diverted from the normal channels. Inflation also alters the distribution of income. Lenders are generally hurt more than borrowers during long inflationary periods, which means loans made earlier are repaid later in an inflated currency,” he said.
The prices of most essential items have gone up in Qatar in the last few months primarily because of the impact of rent spike on commercial and trading establishments. For the same reason the cost of services has also shot up.
The 50% increase in cooking gas prices last year and the markup in petrol tariff in 2005 have also pushed up the prices of essential commodities and foodstuff in the last couple of years.
The situation has become so grave that many expatriates have sent back their families and moved to sharing accommodation. Private companies have been lamenting about their inability to bring in qualified professional employees due to the housing problem.
Not very many private companies can afford to bear the entire housing costs of their employees.
According to HE Kamal, the rise in rents was primarily due to price escalation for building projects.
“Various infrastructure projects implemented by the government resulted in an increase of the prices of building materials since the demand far outweighed supply,” he said in an interview with a TV channel in December last year.
My all-in salary is in the region of QR29k and I shall be bringing my wife and son over at a later date. I am determined to live within our means and take stock of exactly why we're coming to Qatar in the first place... and it's certainly not for the sun, golden sands and the desert! But what pleases me even before I set foot in Qatar is that I have the privilege of getting so much information from all of you, and am getting prepared for the best-and worst- to come. Thanks to all of you... and please keep the info coming in this blog!
These figures are rediculese. 29000 a month is not enough?? with that kind of money you would live like a king in Qatar. you can get lexuarios villa for 15k and 14000 is more than enough to spend. Qatar is one of the cheapest countries in the world if you know how to spend. you can eat out in a very good resturant for 2 persons for only 50-75 reyals ( however if you want to eat in 5 star hotels it is a differnt story). you can get a decent car and fuel is very very cheap here compared to other countries( the uk fuel cost 10 times more). and for a person that have a packege for house/school for his kids he can save loads of money and live a very good life here. the only problem is housing and it will be solved soon as there are major housing projects going on and soon this shortage will be covered
I guess those who get paid 29000 QRs are getting accomodation aswell. Alot of people do. But its stupid to hear that 29000 is not enough, its a hell lot of money. I dont understand why is this a problem, A family of 5 can easily live a luxorious life with 29K, if they know how to spend money. Qatar is one of the cheapest countries around the world, except for the house rents, so if someone cannot save up here, then they cannot save up anywhere. Obviously this information is fake or those who are complaining about it are the ones who are driving their range rovers and proches, otherwise if someone knows how to live a real life would never complain. My parents have been thru this, thats why I know.
It's always the small things that make big differences.
Have a listen
Qatrina. i dont know about the impression you have got. Most well paid workers do work with Qcompanies (Govt or other big foriegn firms), others are on tight leash. Somewhat 1990-ish pay which have been marginally pushed up (unwillingly by employers). Then agian its not good enough. To make ends meet. Throw away family, live in outskirts, catch buses (abandon that petrol hungry car) then again end of the day what we have to show towards savings is peanuts. These people are no charity workers. And I guess you understand that the economy or quite simply the running of everyday life depends upon more non-Q-comapanies than the Qpetro/chem ones.
Happy ramadan
xyned
Its getting too expensive that I have decided to leave Qatar end of this month.
Will go back to Canada with my family where I know its better in all ways that staying here :)
It has been a very good experience for me here and I have made lot of friends. I thank all for their kidness and wish all the best.
right
all those who work with Q-companies, good on ya. for the less fortunate ones who really have to shell out the dough for rent and transport from their own pocket its a less than rosy picture.the rent for a two room accom can make many a mid-earning expat dry up like shrivelled figs.
they ought to decrease the rent otherwise the only people workign here will be the ones employed by The big Q's.
either way its either raise the salary(which will have detrimental effect on the currency, if th etrend continues, there will be Yuan-effect on the riya. that is the riyal will stand for less and less value just like the yuan where hundred thousand yuans buy you a decend blanket.
otherwise the forecast is dark and gloomy. Expats are going to leave. Leaving a huge skill shortage which will inturn lead to companies hiring worker either overseas or loaclly providing them with rental accom and higher salaries to fit the bill
anyway. down goes the value of riyal. sooner or later. a dumb tourist location seeing the over the head expense. Companies wont really see the benefits of operating here anyway.
Booming economy or not. These buildings are not really going to feed the economy for long.
cheerios
Hi all, I'm new here. I'm working somewhere in Ras Laffan and comes from Asia.
Just to remind:
Don't forget, most of expat working with QP or it's subsidiaries are getting free housing (some with nice club) with free water/electricity. It does'nt count to the salary right?.
hi charmed, masha'allah you are earning well.
if you notice we advise all who post here to come with solid packages because the companies here know the situation so they must pay accordingly.
but sadly there is a huge majority of families who do think everyday if they can afford decent food and if they can pay the rent. it truly is horrid.
but somehow i think we learn to live with lots and with little as well.
happy heart
drive safe because someone is waiting for you at home
agree with the statement - me and my husband are both expats from the uk and both working - but when i work out how much money we spend each month its a huge amount moonbeam is right in what she says about the expenses and han19 is right too, people do survive out here on a lot less. it shocks me each month when i work out what we have spent that month and what it goes on! yes we both have good packages which offer housing, health and car allowances and we are very lucky to have that! but i also wonder how the people out here who dont have that survive? its very hard for all people out here to cope the price of everything is rising even the food i have noticed prices are going up and up! what can we do thou, i have spent the majority of my life dirt poor up till now,and i can sympathse with these people who arent as lucky as me - you know that feeling of can i afford to eat this month, and can i pay the rent its horrid and i wish people would realize this before outting costs up
charlene, my honest mistake, i mistook qatarina's post to be yours.
happy heart
drive safe because someone is waiting for you at home
ok qatarina, its my mistake, i thought you are living in doha and well versed with the goings-on of this place, which is why i posted my opinion.
but yes the article is good for the ones earning well, but doesnt speak for the majority of the population here.
happy heart
drive safe because someone is waiting for you at home
First off I am living in Qatar. Secondly excuse me for stating my opnion. Thought I could do that without people jumping on the ban wagon and getting so damn defensive!
When it will become too expensive the majority of expats will leave. We are here not because of the beauty of the landscape and love of Qatari national food. Tax free doesn't count as a benefit anymore, they have to incentivate people to come here to work.
drake...thanks for the simple but succinct explanation...
han19...how can i be in denial if i am not in the situation... hubby and I are in malaysia...we are just observers of the situation for now...
charlene...sorry if i misled you..my husband doesn't get all that..at least not till he accepts the offer.... or not...seeing that it's now very expensive to live in Qatar...
moonbeam...thanks for showing me that not all companies offer their workers good packages..i didn't know that...
abc150..i am not a french princess...I am a Malaysian princess thank you...
qatarina and charlene, you seem to be in some sort of denial, as long as the expenses is covered for you, it doesnt matter how another person/family seems to be surviving.
well for your information, many eastern expats pay for the shcooling and other expenses from their basic salary. even the housing is given at a paltry 3000qrs, the extra is paid from the basic salary in current times.
moonbeam, you made some valid points, but i must say even if the eastern schools is less expensive, the cost is not coming down anyway. the schools are hiking up their prices. eastern food isnt cheaper than western food, infact i would feel vice versa, but thats not the point. food is food, you gotto pay for it, and the price of food is going up.eating out is a luxury.
i do agree that most products that come here are discontinued at the point of origin and they still charge at full price, thats a sad situation.
i know families who are managing 3 kids and trying to live a decent life in just 10000a month, how they manage it, beats me.
happy heart
drive safe because someone is waiting for you at home
Obviously the guy that wrote this narrowed it down to an average. Eastern expats have the advantage that their food is less expensive than Western expats, and their schools are too. A top eastern executive can expect to pay up to this amount a month. As for western executives, I know of a couple with no kids who spends 32,000 qrs a month. Qatarina you are correct that many expats get all included...... but they are generally limited to the very large american companies; who invest on their personnel.
With housing running up to 30,000 a month in the west bay area; and closed compounds around doha averaging at 16,000 a month; 29,000qrs a month sounds a little low.
Go to Carrefour and buy a trolley load of imported items, and I can guarantee you won't spend less than a 1000 qrs. Have to see the doctor? Want to go private without medical insurance? Well expect a bill of 300 qrs and above depending on the situation.
Take a brand name that you know well, and compare the cost of the same item in your home country and you will be shocked to see how much more it costs here. AND you know what? Alot of the stuff (non food) that gets brought here is actually overstock or discontinued at origin....so we SHOULD be getting it an amazing price and yet, they put full price; when they themselves get the stuff at overstock bargain price.
The reason that people spend alot here is because everything that is good quality and will withstand wear and tear, costs a fortune. And you have to remember that many families who relocate here, leave behind a lifestyle that they miss, and in order to 'make this place feel a little like home' they spend. Frankly I don't blame them........I blame the greedy nature of businesses here. I have yet to see one business here that follows european or US standard for quality, value for money, and STOCK. Good example of this is "LAST PIECE" and yet you still have to pay the full price, after the item has been touched by a thousand grimy hands.
With the advances this country is making, I sincerely hope people open their eyes here. In the end all us expats have homes to return to. The qatari's will suffer in the end....this is their home....and soon it will become impossible to live here and expats will leave. For a country that depends highly on the expat population, I wonder what would happen then?
The article isn't insinuating that various expenses are coming out of a basic salary, it is simply breaking down the cost of living.
The value of this report is to hopefully answer the repeated question from Western expats asking "Is this offer enough?"
With a breakdown of all expenses, an offer can be lookied at point by point. If a package is offered and allowances are in the range of this report, then they need only to look at the basic salary and decide if it's worth the move.
Both of you are like that french princess who upon seeing hungry mob asking for bread said "why dont they eat cake instead". Dream and wonder.
Qatarina, you are quite right. I feel this does not apply to a lot of us. We get an excellent wage and the house and all costs other then food are all covered.
why are they talking about all these expenses like housing , school fees etc as if its coming out of the expat's basic salary? from what i have seen and correct me if i'm wrong, expats get offered really good packages where these additional expenses are taken care of... I know not all expats get great packages but i think a number of them do.. be it western or eastern. please enlighten me on the situation...
I think there is alot of extravagance practises out there. People over spend while other die of hunger in Somalia and Niger. Homeless people everywhere. I was in Lebanon the other day, kids are freezing from cold and then you find such a report with such figures for one person. I wonder if other people are made out of Gold.
O Lord, when will the world come to reality. Its disturbing.
I dream of such hefty pays, but still, and alhamdulillah, i live a descent life and support mum and my five sisters in University.
this is a rude awakening to families who cumulatively dont earn even 20000qrs and still manage kids school fees, transportation and other essential expenses. most asian families would come in this category. having club membership is a luxury very few can afford.
was the article based on western and european expats earning because very few asian expats would be earning so much?
even if they do, its because the couple are earning together.
i know we advise most newcomers here on Ql to come with a solid package. just out of curiosity, do the western and european expats of this forum agree with this figure?
do you think its exxagerated and its probably lower?
happy heart
drive safe because someone is waiting for you at home
I know western expats that make at least this amount and don't have any savings at the end of the month.If you're a western executive and you want to maintain the lifestyle you had back home, you can spend at least this much.
From ex-pats experience, do you find this report accurate?
29000 QR per month & thats without saving!!!!
I think its time for me to go back home