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by Expatguru - 09/06/2011
"This article gives an overview of the cost of living for potential expatriates planning to work in Qatar"
One of the issues every potential expatriate planning to work in Qatar is to know the cost of living in the country and the savings he or she would be making. This is a rather tough question to answer, because there are factors such as income, habits of individuals, etc., which also have a bearing on the total savings. Nevertheless, a rough idea is given here.Please note that the Qatari Riyal is pegged to the US Dollar at a flat rate of $1= QR3.65.
Bread is quite cheap. Arabic bread is sold at QR1 for 5 pieces while a loaf of bread costs QR4.50. Recently, the cost of rice has increased and a 10 kg bag of Basmati rice costs QR 40. Gasoline is quite affordable and is currently sold at QR1 / liter.
Most western expatriates prefer to stay in housing compounds, as they are highly secure and offer excellent facilities. Due to the limited number of such compounds, the rents have gone up in recent years. The current rate is in the range of QR40000 / month. Most of the companies which used to bear the housing of such expats have now changed their policy to paying house rent allowances instead, to offload their burden. Eastern expatriates on the other hand, usually prefer to stay in apartments. A typical double room apartment for a family in Doha downtown costs QR8000 / month.
Expats do have to take into account housing costs while negotiating with potential employers. After an exponential rise up to 2010, rents have drastically come down in the past one year simply because supply is more than demand. However, with the announcement of 2022 World Cup being awarded to Qatar, a flurry of construction activity has already begun which would have some bearing on the rents. For those who get housing allowances from their companies, I would advise to take this cost into account while negotiating.
Expats must enter into a contract with the house owners. Usually, the rent is paid in advance every quarter. For the period of the contract, the house owner cannot raise the rent. However, in case the expatriate wants to vacate the house and move to some other place, he has to pay the rent for the remaining part of the contract. It is quite normal for such expats to get fellow expats to occupy their house and make them pay for the remainder of the contract, in agreement with the house owner. As per Qatari law, house owners cannot raise the rent by more than 10% each year.
Schooling is quite standardized and rates vary depending on the type of school your kids are put into. There are several American and British Universities who have opened branches in Doha, but the rates are exactly the same as back home. However, financial aid is available in all these Universities for meritorious students, which would take care of most of the expenses.
Electricity is currently @ QR 0.05 per unit. Water charges are very nominal.
Overall, the savings potential is quite high and lifestyle is quite good for potential expatriates, provided one spends sensibly.
Expatguru
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clauida kinsey