Qatar Inflation to Rise

In what is bad news for, well, everyone, Qatar inflation is set to rise still further, the Peninsula reported today. The news followed on from an earlier report this week that inflation this year would reach 16-17% from almost 14% last year. Inflation has been hurting everyone, recently, and while even the better off expatriates among have been feeling the pinch those on low wages - of whom there are many in Qatar - are really struggling. Like many in Qatar, we are weighing up our options, and if there is no pay rise soon next year may well be our last!

For an idea of current prices check our recent cost of living update, which lists the price of many household items.

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Cost of Living Update: Food Items

"Look at these lemons," said my wife recently as I walked into the kitchen. The pack of four lemons had a price tag of 12 riyals. "They were a riyal each not long ago."

I realised it was time for an update on the cost of living. I don't believe in giving estimates of how much it costs to live in a country, because it is different for everybody - some people survive on less than a 1000 riyals a month (although survive rather than live is the appropriate word) - while others struggle on 20,000. One thing you should do before accepting a job is build some slack into your cost of living expenses. Unless Qatar abandons the dollar peg, prices will continue to rise.

The cost of goods here were taken either from Carrefour or from Family Food Centre, two of the major food stores in Doha. On balance, Carrefour has proven to be the cheaper of the two.

Exchange rates:

The riyals is roughly equivalent to the following:

1 riyal = 0.27 US dollars/ 0.14 pounds / 11 Indian Rupees / 11.5 Philippine Pesos

To convert riyals to any other currency use this Qatar Currency converter, and to see a more complete and up-to-date list of currencies see this list of Qatar exchange rates. To see more posts on the cost of living click on the cost of living label below.

Note: we will be following this up with updates on the cost of accommodation, buying a car and going out in Qatar.

Food/Drink	Price in Qatar Riyals
Tea Bags (100 bags)	8.50
Sugar	2.50
Salt	2.50
Flour	4
Butter (100 gr)	2.75
Coffee Nescafe (250 grammes)	28.75
Water (1 gallon)	8
Milk (2 litres)	10
Juice (2 litres)	9
Whole chicken (medium)	18
Beef (local)
Beef 1kg (New Zealand)	32
Lamb (local)
Lamb (New Zealand)	34
Tin of tuna	5
Sadia chicken nuggets	13
Chicken sausages (1 can)	9.50
Tin of sardines	1.50
Loaf of bread (white)	4
Jasmine rice (1kg)	10.25
Potato (1 kg)	4.00
Packet of pasta	3
Instant noodles (pack of 5)	4.50
Tray of eggs (24)	23
Cornflakes	10
Tomato ( 1kg)	5.50
Broccoli (1 kg)	21.00
Corn oil ((750 ml)	8.50

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Strongest hint yet of revaluation

There have been so many rumours of revaluation over the last few months that we have long stopped mentioning them. However, it is worth mentioning a quote in the Gulf Daily News which is the strongest indication of revaluation yet.

According to the article, which quoted an unnamed Qatar central bank official, Qatar is considering revaluing or dropping its dollar peg last month. Specifically, the official was quoted as saying:

"Everything will be clear by the end of this month because our fiscal year ends on March 31, so by April the central bank will make an announcement," the official said.

After the report the Qatar riyal strengthened and a Deutsche Bank economist said:

"Combined with other recent comments that the Qatari riyal could be undervalued by around 30 per cent, this will likely to see appreciation pressure mount."








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Cost of Living in Qatar: Inflation, Rent and Pay Rises

Inflation has increased again in Qatar, largely due to rents which rose by nearly 30% in the period July - August, according to the Gulf Times yesterday.

Inflation has also been helped by the declining dollars, and these latest figures could help speed the demise of the doomed dollar peg.

Worryingly, the figures are higher than for neighbouring countries such as the UAE, which face many of the same problems.

Meanwhile, one expert has estimated that rental prices will continue to rise for another two years, after which supply should finally meet demand.

The message is clear for potential residents - make sure accommodation is included in your contract!

However, it's not all doom and gloom, according to rumour mongers, at least for public sector workers. The whisper is that Qatar will be following Dubai with a massive pay increase.

Dubai recently raised the pay for government workers by 70%. There is a lot of competition in the job market between Dubai and Doha, and rumours have been circulating suggesting that Qatar will follow with a pay rise of anything from 20% to 100%!

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Cost of Living in Qatar: Household Items

In our latest post on the Cost of Living in Qatar we have a look at the cost of household items. The prices here are taken from the supermarket Family Food, which is neither the cheapest nor the most expensive shop in Doha (you'll find cheaper in Carrefour in City Centre or Villagio Mall.)

For comparison purposes, exchange rates at time of writing: 1 Qatar Riyal is equal to 27 US cents, 11 Indian Rupees or 12 Filipino Pesos. However, exchange rates can change rapidly, and if you want to be totally sure of the prices use our Universal Currency Converter.

To see our other posts on the cost of living just click on the label below the post.

Household Items	Price in Qatar Riyals	Price in US Dollars
Washing powder 4 kg	23.50	6.45
Washing up liquid 1 litre	7.75	2.10
Ordinary bulb	2	0.60
Floor Cleaner 2 litres	12.25	3.35
Hair gel	10	2.75
Shampoo 450ml	7.75	2.10
Soap	4	1
Tooth paste (colgate)	6.25	1.70
Colgate Mouthwash	20	5.50
Tea (100 bags)	9	2.50
Coffee (100 grammes)	12	3.30
6 Boxes of tissues	14	3.85
Toilet paper (8 pieces)	14.50	4
Nappies (pack of 64)	54	15
Baby wipes	12	3.30
Baby formula (Aptamil 3)	38	10.50

Cost of Living in Qatar: Accommodation

It's noticeable that rents do not seems to be increasing at quite the same rate as they were a year ago. However, the decreases in rent that were hoped for after the Asian Games have failed to materialise. Which is a shame, as the high rents have forced many families out of Doha, often to be replaced by more transient bachelors.

The high prices no longer seem to be driven by demand, but by landlords holding out in the hope of achieving good rents or of rents sufficient to service the loans taken out to purchase or build the properties.

In this short post we have noted down prices as advertised in a local newspaper. For more information about renting accommodation in Qatar see our website article: Renting in Qatar.

For comparison purposes, exchange rates at time of writing: 1 Qatar Riyal is equal to 27 US cents, 11 Indian Rupees or 12 Filipino Pesos. However, exchange rates can change rapidly, and if you want to be totally sure of the prices use our Universal Currency Converter.

Advertised Accommodation

Shared room near city centre QR750

2 bedroom villa Al Wakra (Out of town) QR5500

Flat for rent: 3 bedroom unfurnished Najma QR7000

Studio apartments near Corniche QR7,500

3 bedroom flats Ras Abu Aboud unfurnished QR 8,500

Villa in Al Rayyan 5B/R 14,000

Luxury Villa in Al Hilal 5 bedrooms fully furnished QR18,000

Villas in West Bay Lagoon 4 bedrooms 4 bathrooms QR 25ooo

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Cost of Living: Budget Indian Restaurants in Qatar

The Cheapest Food in Qatar

It’s been a few months since we did any posts on the cost of living, and with inflation still sky high we thought it was time to start again.

This time we are going to look at the cheapest way to eat out in Qatar. If you are Indian – especially if you are from Kerela – there is good news for you. Without a doubt Indian food, much of it from Kerala, often provides the best value there is around.

In addition to the table below, many residents choose to pay a restaurant monthly. QR250 to 300 will buy you two meals a day for a month in a typical Indian restaurant.

Before we hit you with our list of prices, it is worth noting that there are plenty of medium and high class Indian restaurants. (We particularly recommend the Chingari Indian restaurant in the Ramada – see our restaurant reviews here.) However, the focus of this post is on budget food rather than the range of cuisine available.

For comparison purposes, exchange rates at time of writing: 1 Qatar Riyal is equal to 27 US cents, 11 Indian Rupees or 12 Filipino Pesos. However, exchange rates can change rapidly, and if you want to be totally sure of the prices use our Universal Currency Converter.

Prices may vary from place to place!

Dish	Price (Qatar Riyals)
Briyani rice	QAR 5
Chicken Briyani	QAR 8
Chicken curry	QAR 7
Mutton Curry	QAR 8
Mutton Briyani	QAR 8
Paratha	QAR 1 (2 pieces)
Sandwich (any type)	QAR 2
Whole chicken (small)	QAR 15
Whole chicken (large)	QAR 25
Kubus (Arabic bread)	QAR 1/packet
Fried fish	QAR 5
Idli (steamed rice cake)	QAR 1/piece
4 Idli + sambal + chutney	QAR 5
Dosa	QAR 1
Onion dhosa	QAR 3.5

Food and Food Etiquette in Qatar

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Inflation falls in Qatar

Inflation has fallen slightly in Qatar according to Qatar’s central bank, although at 12.5% it is still well above Qatar’s interest rates. The fall in inflation seems to be mainly due to a slowing in the price of renting and buying property, which rose at a mere 27% in the three months to the end of June (compared to 35% to the end of March).

Qatar claims that inflation is due to the booming economy. While this is undoubtedly a factor, Qatar’s crazy policy of low interest rates and pegging the riyal to the dollar is also a major factor. Meanwhile, people are seeing the value of the wages stripped away. Some long term Doha residents are starting to leave – sometimes very reluctantly. Some Qataris are also suffering, with young people putting off their inordinately expensive weddings to later in life, and spending longer in the family home.

If you are considering to Qatar, remember to factor inflation into your calculations. Try also to find a contract where accommodation is included!

Renting Accomodation in Doha

Accommodation Prices in Doha

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Rising cost of living in Qatar

Year on year inflation reached 15% in the first three months of this year according to a story in the Gulf Times today.

Many residents will be surprised – sometimes inflation here feels a lot higher. Furthermore, in terms of rental prices Doha has now overtaken many international cities including Brussels, Dallas and Toronto. Rent now averages over Qr8000 ($2,200) for a three bedroom apartment.

Food prices will also be hurting people on lower incomes – some foods seemed to have doubled in the last few weeks. I was shocked to see imported beans in Family Food at QR30 (eight dollars) a kilo.

With all this inflation you’d expect interest rates to be high. I visited QNB’s central bank’s website and found the benchmark interest rates as below:

Qatar Central Bank Rates
Previous Current
O/N Deposit Facility 4.90% 5.15%
O/N Lending Facility 5.25% 5.50%
Repo Rate 5.85% 5.55%

So if you have money in a saving’s account in Qatar, you are currently losing in the region of 10% a year!

The low rate of interest may be related to the desire of Qatar to join a currency union, and the consequent pegging of the Qatar riyal to the plunging dollar. Coupled with frantic growth and the huge amount of money flowing into the country, inflation is inevitable.

I still remember Black Wednesday in the UK, when our country were forced out of the European Exchange Mechanism by currency converters. Our Government estimated it cost them ₤3.4 billion – other estimates put the cost at ₤24 billion.

On the other hand, by staying out of the currency union we retained control over interest rates. Sensible interest rates by the Bank of England has lead to a decade of low inflation and economic stability.

With Kuwait recently abandoning its currency peg, the possibility of Qatar doing the same has to have increased. In the meantime inflation is increasing and less affluent Qatar residents are starting to suffer.

The saddest part of all this is the departure of long term Doha residents. An example of this was a long letter to the paper last week. A family who had been in Doha for thirteen years, and who are very fond of the country, were finally having to leave because of the increase in rent. The writer warned that it was getting increasingly difficult for companies to afford to employ people with families, and the result could be a more transient population of single men in the future. This would be a sad fate for a country where families and children are valued so highly.

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Renting outside Doha

One answer to Doha's exorbitant rents can be to live a little out of town, and I know a number of people who commute to nearby Al Wakra. Villas advertised in the Gulf Times today were in a price range of QR5500 - 6500 ($1500-1800) for two to three bedroom villas in a compound with a swimming pool and fitness club.

Unfortunately it means having to live in Umm Slal, which, after you have seen its forts, is about as exciting as watching paint dry. Still, the equivalent in Doha would get you a one bedroom flat (if you're lucky), so it could be well worth it.

Umm Slal is close to Doha, although traffic could be bad in rush hour. If you are interested get down to the Exhibition Centre before the end of today or check out the advertiser's website: www.almourouj.com.

Also see: Umm Slal Mohammed: forts and streams

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Salary ranges and cost of living in Qatar

"It's terrible here. It's slave labour."

I was at a party. The man speaking was an American engineer working for an oil company in Qatar on a tax free salary of 12,000 dollars per month with benefits.

"Are you talking about the labourers here?" I replied.

"No, us man."

I spoke to another man recently when I was visiting an independent school. He was leaving the school for another job.

"It's a really good job," he told me. "It pays 800 dollars a month." He looked around the classroom. "Some of these guys earn 4000 dollars a month," he whispered to me in awe.

As you can tell from this discussion, and from a quick search under salary ranges on Qatar Living, what is a good wage in Qatar is open to interpretation. The range of wages are huge - starting from the 100 dollars paid to some cleaners (recently revealed by the papers - the cleaners had actually been promised more), 160 dollars for labourers and climbing to huge amounts to highly skilled Western expats.

What people need also varies hugely - Qatar National Bank recently suggested an expat family needs nearly 8,000 dollars to live in Qatar. However, my family (with accommodation and bills paid for) spend about a quarter of that, even after paying nursery fees for two children. I have single male friends who live without skimping on about 1000 dollars a month (the ladies seem to spend rather more for some reason). Meanwhile, shop workers I know save most of their 400 dollar a month wages.

Costs

Accommodation

This is the biggest cost and hassle, and one you really want your employer to sort out for you. Many low paid workers share rooms - often with 4 or more sleeping in one small area. While you might get a small one bedroom apartment for around 1600 dollars a month, Qatar National Bank have estimated the average cost for rent and utilities for a family with two children at more than 3000 dollars a month. See Cost of living: renting accommodation in Qatar for more details.

Food and day to day needs

Vegetables are relatively expensive. Expatriate food is imported, and is usually sold at a premium to the country it is exported from. This can be seen at Mega Mart, where I have seen mince pies with a price tag of 1 pound (around 7 riyals) and a Qatar price tag of 24 riyals, Meat, however, is reasonable, fish is often incredible value and you can reduce costs by buying vegetables from the market off Salwa Road or fish fresh off the boat on the Corniche. Nappies and infant formula is more expensive than the UK. We generally spend about 700 dollars a month to provide for three adults and two small children (including eating out).

Paradoxically eating out seems cheap to Westerners such as us. Many labourers will pay a restaurant fee in the region of 70 dollars a month for three meals a day for a month. Prices go up from there, but even at the top range value is normally far, far better than in the UK.

Transport

Taxis start at less than a dollar and cost 25 cents a kilometre - not bad, considering Doha's a pretty small place and nowhere is very far away. Buses charge a flat fee of two riyals (50 cents) inner city and 7 riyals (2 dollars) between towns.

Motoring costs

New vehicles are cheaper than the UK but more expensive than in America. A new four wheel drive costs from eighty thousand up. Older vehicles are expensive because of the huge demand for second hand cars. Maintenance and repairs are cheap, although parts for American cars can be expensive. Petrol is ridiculously cheap. Fines can be pricey (3000 riyals or over 800 dollars for shooting a traffic light) and are due to increase. (see Driving in Qatar for more information.)

Out and about

Most things to do and watch are either free or very good value. Exhibitions are free, museums are free, horse racing is free and you can see world championship level motor racing for around sixteen dollars. (See our posts on what to do in Qatar, Superbike racing and Losail racing track.)

Alcohol and clubs

For prices at Doha's only offie see our previous post on the cost of alcohol. Clubs are usually free for women, and vary for men - 40 riyals is normal, although you can pay a lot more. Drinks out are obviously expensive - beer at its cheapest is at around five and half dollars a pint.


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The price of alcohol in Qatar

How much does alcohol cost in Qatar? Assuming this might be as big a consideration for other expats as it is for us, we decided to make a trip to the booze shop to find out. (As if we needed an excuse!) The prices below, however, are only a representative sample, designed to give someone thinking of coming here a rough idea of the cost of alcohol in Qatar. (For information on the practicalities of buying alcohol in Qatar, see this post.)

Imperial Vodka (75 cl) 34 riyals/9 dollars
Smirnoff Vodka (75cl) 82 riyals/22 dollars
Absolute Vodka (75 cl) 85 riyals/ 23 dollars
Napoleon French brandy VSOP (1 litre) 55 riyals/ 15 dollars
Old Monk Rum (75 cl) 34 riyals/ 9 dollars
Grants whiskey (75 cl) 69 riyals/ 19 dollars
Glenfidich single malt whiskey 12 years 169 riyals/ 46 dollars
Case of 12 San Miguel Bottles (33cl) 110 riyals/ 30 dollars
Case of Oranjeboom 24 cans (50 cl) 118 riyals/ 32 dollars
Case of Fosters 24 bottles (35 cl) 128 riyals/ 35 dollars
Case of 20 Guiness cans 44cl 216 riyals/ 59 dollars
5 litre box red claret select 118 riyals/ 32 dollars
5 litre box Berri Estates rose 93 riyals/ 26 dollars
Easy drinking red and white wines 28/29 riyals 8 dollars
Bottle Rioja Monte de Cassio 2003 72 riyals/ 20 dollars
Bottle Rioja Monte de Cassio (Reserve) 2000 140 riyals/ 35 dollars
Merlot Chilean red 2004 48 riyals/ 13 dollars
Stanley Estates White wine (4 litres) 68 riyals/ 17 dollars
Nottage Hall Chardonnay (white) 2005 39 riyals/ 11 dollars
Eagle hawk Australian white 2006 57 riyals/17 dollars

Also see: Qatar Resident's Guide
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Inflation

Inflation made the headlines again today in both the Peninsula and the Gulf Times after reaching almost 12% in 2006, compared to 8.8% the previous year. The main cause was, once again, rent increases. Expected wage increases of 20% in the next year are likely to aggravate the inflationary situation, yet despite this high inflation the government has yet to increase deposit rates. This table in Qatar Central Bank's website states that deposit rates are still below 6%. According to yesterday's Gulf Times wage increases are not sufficient: last year wages rose 15% compared to an increase in the cost of living of 24%.

In other news the Qatar Government's investment arm, Delta 2, is considering increasing its stake in Sainsbury as part of a "strategic investment".

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Price rises

The day after Qatar public servants got a major pay rise (40% for Qatar nationals, 20% for other nationalities), food prices seemed to double. I was shocked in Mega mart to see most imported veg was around 18 riyals/kilo ($5) mark. Even normally cheap "local" vegetables were expensive. The small, pale courgettes that are normally as cheap as chips had shot up from 3 riyals (80 cents) to 6 riyals ($1.60). The increase was repeated in other shops such as Carrefour, and small local shops were even worse.

So it was no surprise to see the Peninsula screaming "Consumers are ditching Qatar". It seems that it is now cheaper to leave the country and do your grocery shopping abroad.

It is usual for prices to increase around the time of major festivals (it's now Eid Al-Adha), and I have also heard rumours that there are temporary shortages of some foods. Hopefully, then, this is a temporary increase in prices, because a lot of people are counting on a fall in prices after the end of the Asian Games.

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Cost of Living: Renting property in Doha

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Cost of living: Renting property in Qatar

1br flat in Al Hilal, 1 toilet, sitting room, kitchen Qr 4,500/month ($1,200) For enquiry, please contact...

2br flat in Salwa Road 2 bathrooms, sitting room, dining room, kitchen, covered parking Qr 9,000/month ($2,500) Call...

Furnished villa, 4 bedroom in Luqtah area near Qatar foundation Rent: Qr 20,000/month ($5,500) Call...

Unfurnished villa 5 bedrooms + garden covered parking West Bay area Qr 30,000/month ($8,000) Call...

The above ads have been gleaned from newspapers and and online ads. You can find chepaer, but you'll need to look around.

It will come to no surprise to long term Qatar residents that rents have risen by 83% over the last two years (Peninsula 12/6/2006). This is compared to 60% in Dubai. For expats who don't have their accomodation provided by their employer, rents are increasingly difficult to pay, and have lead an increasing number of people to either send their families home and move into a single room or to leave the country.

Many workers are now forced by prices to share rooms. I know of one Indian man who used to share a room with 5 other people. Now he is looking again. When he came back to Doha after two months back in India, the block of flats where he had lived had been demolished.

Some Qatar based economists have been forecasting that rents, inflated by the huge influx of people preparing Qatar for the Asian Games, will soon fall substantially. If they do not, wages will either have to rise or people without housing provided will start leaving Qatar. (See Expat business men pin hopes on rent fall after Asian Games.)

For an idea of property prices in Qatar have a look at Rental property online . You could also have a look in Qatar Living, or once you are in Qatar, have a look at the classifieds sections of the local newspapers.

Also see:

Qatar Property

Cost of Living in Qatar

Buying property in Qatar: Essential information and unbiased opinion

Qatar Real Estate Rental Services

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