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Cities in the UAE have been listed as among the most expensive for expatriates in the Middle East in the 2019 Cost of Living survey published by global consultancy firm Mercer.
The survey ranks Dubai at 21 and Abu Dhabi at 33. This has been attributed to the continued success of the UAE’s drive to diversify and mature its economy, notably due to a boost in non-oil revenues in line with Vision 2021.
Ilya Bonic, President of Mercer’s Career Business, said, “In a skill-focused economy driven by digital disruption and the need for a globally connected workforce, deploying expatriate employees is an increasingly important aspect of a competitive business strategy for global companies.”
“There are numerous personal and organizational advantages for sending employees overseas, including career development, global experience, new skillsets, and re-allocation of resources. By offering fair and competitive compensation packages, organizations can facilitate moves that drive business results,” he added.
Vladimir Vrzhovski, Global Mobility Consultant at Mercer MENA, said, “Due to the strong performance of the US dollar versus the euro, the countries with currencies which are pegged to the dollar, like the UAE dirham, have risen in the ranking compared to most of the European cities.”
The UAE continues to be an expat haven. “The country continues to be an appealing location for expats due to highly competitive compensation packages, falling real estate prices, high safety standards, and a healthy economy,” Vrzhovski said. “Local inflation has come down for the last 12 months due to falling rental prices and the full phase-in of VAT implementation.”
The Cost of Living Survey is aimed at helping multinational companies and governments determine compensation packages for the skilled foreign workers they send or hire overseas. New York City is used as the base for all comparisons, and currency movements are measured against the US dollar.
The ranking focuses on 209 cities around the world and measures the comparative cost of more than 200 items in each location, including housing, transport, food, clothing, household goods and entertainment.
Asian cities remain the most expensive in the world by far, claiming eight of the top 10 spots in the list of most expensive locations for working abroad. In order, these are Hong Kong, Tokyo, Singapore, Seoul, Zurich and Shanghai, followed by Ashgabat, Beijing, New York and Shenzhen.
The fastest climber on the list is Ashgabat, Turkmenistan’s capital; the city leapt 36 spots to seventh place as a result of a shortage of currency and rising prices driven by imported goods.
(Writing by Seban Scaria; editing by Daniel Luiz)
© ZAWYA 2019
