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Qatar Expatriate Perspectives

Thinking about finding a job abroad? Our analysis shows that a salary cost of living, exchange rate, quality of life (problems) and long-term economic stability, Qatar is one of the best places in the world for expatriates to live. Surprised? Well wonder why we say this.

While the rest of the world battles of the continuing impact of the global credit crisis, slowing economy, falling house prices, falling stock markets, the volatility of exchange rates, the U.S. dollar and lower oil prices, Qatar stands out as being in good position to weather the global storm better than anyone.

The State of Qatar's population has recently surpassed 1.5 million people (more than 1 million people are expatriates) after several years of incredible economic growth that has fueled the demand for skills and labor. Qatar is still relatively low compared to the population of the UAE of 4.7 million. The total population of states within the State of Qatar, according to the Authority Qatar Statistics, 31. Oct.2008 is 1,541,130 persons, consisting of 1,185,575 (77%) men and only 355,555 (23%) Women, which is indicative of a large number of children Unaccompanied male expatriate workers in Qatar. Foreigners make up about 78 percent of the population (compared to the UAE 84%), most foreign workers in Qatar are from India, Pakistan, Bangladesh, the Philippines and the Arab countries.

Qatar is rich oil, but what differentiates Qatar from other oil producing countries is that the world's largest gas field is far off the coast of Qatar North Field, estimated 25 trillion cubic meters of gas in place, enough to last over 200 years of optimal production levels.

Due to the distance from its markets, pipelines are not a practical option for Qatar. For several decades, the development of liquefied natural gas process for remote gas fields has become more and more viable. Liquefied natural gas or LNG is natural gas (mostly methane, CH4), which was converted into liquid form for ease of storage or transport. Liquefied natural gas takes up about 1/600th the volume of natural gas a trick burner stove. It is odorless, colorless, nontoxic and noncorrosive.

The costs of processing and transportation of LNG were so huge in the past that the development was slow until recently. LNG is primarily used for transporting natural gas to markets where it is re-gasified and distributed as pipeline natural gas. LNG offers an energy density comparable to petrol and diesel fuels and produces less pollution, but its relatively high cost of production and the need to store it in expensive cryogenic tanks have prevented its use in commercial applications.

In the early 2000s, several players took part in the investment both upstream and downstream, and new technologies are introduced, prices for the construction of LNG plants, receiving terminals and vessels has decreased, making LNG a more competitive distribution of energy, but increasing mateRiyal costs, lack of skilled manpower, the shortage of engineers, designers, managers and other white collar professionals and the demand for construction contractors have driven up prices in the last few years.

The development of LNG trade is based on downstream buyers sign 20-25 year contracts with strict conditions and pricing structures. Only when customers have been confirmed and the development of a greenfield project deemed economically feasible, the authors do a LNG project invest in their development and exploitation. Therefore the activity of LNG liquefaction was considered like a game of the rich, where only players with strong financial and political resources can be involved.

Global demand for LNG expected to grow considerably. The International Energy Agency estimates that European imports of gas from Africa and the Middle East (Mainly in the form of LNG) will quadruple by 2030 (Source: Economist, 14/4/07, p39). The largest LNG train in operation around the world is now Qatar.

the largest lender of Qatar Qatar National Bank (QNB) predicts that Qatar's economy will still grow by 26 percent 2008.

Qatar's gross domestic product (GDP) at purchasing power parity (PPP) per capita, the value of all goods and services produced in a nation in a given year divided by the mean (or mid-year) population for that year is $ 85,638 USD, which makes the Qatar richest nation in the world, according to the International Monetary Fund World Economic Outlook Database in October 2008.

Added to the wealth forecasting long term economic growth, wage levels of expatriates in Qatar have a reputation for being higher than most other Gulf States in U.S. dollars. More good news for expatriates in Qatar (For now) is that the Qatari riyal is fixed by against the U.S. dollar. The U.S. dollar strengthened against most currencies are translated by a strengthening of Qatar Riyal. Between July and December 2008, the rate exchange has evolved strongly in favor of expatriates for most currencies. According to the website Oanda currency following currencies weakened against the Qatar riyal between 1st July 2008 and 1 December 2008, resulting from increases in local currency terms for expatriates working in Qatar, to:

• 47% for Australian expatriates;
• 29.6% for British expatriates;
• 24.3% for European expatriates;
• 18.7% for expatriate Indians;
• 39.3% for expatriates Indonesia
• 13.9% for expatriates in Malaysia;
• 11.2% for Filipinos expatriates;
• 11.1% for expatriates in Singapore;
• 28% for expatriates in South Africa

According to the recent report GulfTalent "Gulf Compensation Trends 2008 'base salaries increased by 10.6% in Qatar in 2007 and 12.7% in 2008.

The rapid growth in Qatar has however increased the cost of living for expatriates in particular the cost of housing. Our data show that Xpatulator in Doha in November 2008 was ranked the 45th most expensive city in the world for expatriates to live with an overall cost of living index 100.64 (New York = 100 and ranks 50th). To put this in the context of some global comparison of cities:

Qatar is more expensive for expatriates to live than places such as;

Place Rank (cost of living index in New York = 100)

56 Germany, Berlin (98.18);

62 Australia, Melbourne (95.88);

66 Singapore, Singapore (94.6);

68 United States, Los Angeles California (93.93);

82 Bahrain, Manama (90.82);

100 UAE Abu Dhabi (87.16);

116 United Kingdom, Birmingham (84.76);

126 Philippines, Manila (82.07);

130 in Indonesia, Jakarta (81.76);

171 India, Mumbai (76.04);

181 Kuwait, Kuwait City (75.22);

183 Saudi Arabia, Riyadh (75.08);

206 India, New Delhi (71.4);

239 South Africa, Johannesburg (64.51);

241 Egypt, Cairo (64.18);

248 Pakistan, Lahore (59.48);

255 Pakistan, Karachi (57.72)

But Qatar is cheapest for expatriates to live than places such as;

Place Rank (cost of living index in New York = 100)

6 United Kingdom, London (118.23);

12 Ireland, Dublin (112.65);

29 Australia, Sydney (106.52);

34 UAE Emirates, Dubai (103.36)

A peeked in Qatar is the current ranking of 45th most expensive place in the world for expatriates to live? It seems unlikely to have had a look in the immediate future due to high inflation in 2008 which, according to the Secretariat General of the Qatar Development Planning (GSDP) in mid-2008, is 16.6% per year in general. The high inflation is driven by two main elements inflationary "rent, fuel and energy" to 24.4% and "Food, Beverages and Tobacco" at 22%. It is likely that Qatar look at the area around the 40th most expensive in the world for expatriates in 2009 before the global economy begins to recover and other countries the cost of living increase compared to Qatar from 2010.

The inflation forecasts for 2009 vary Qatar, but the consensus seems to be that the rate of inflation will be less severe than in 2008, and is expected to return to a little over 10%.

The general consensus is that the global recession will inevitably impact Qatar, however, it is likely to be less severe given exposure to oil in general and LNG in particular. Once again Qatar is well positioned in the expected consequences of the recession in the case of Qatar, is that inflationary pressures should subside as demand cools property with a stabilization of rent increases, which been severe in recent years, given the slowness allows supply to catch up with demand.

So if you had never considered Qatar as an expat destination, I'm sure you should now.

About the Author

Steven Coleman runs the most comprehensive international cost of living website available www.xpatulator.com an internet service that provides free cost of living and hardship information for 276 global locations to registered users. The premium content calculators allow you to customise your own cost of living index by choosing your own basket groups.

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