By Claire Valdini
Djibouti ranked most expensive city in Arab world for expatriates in new survey
Djibouti has been ranked the Arab world’s most expensive city for expatriates, according to a new survey by global consultant Mercer.
Declining property prices in Abu Dhabi and Dubai pushed both cities down on Mercer’s Worldwide Cost of Living Survey 2012, ranking third and fourth in the Arab world and 76th and 81 among 124 cities.
“On the whole, most Middle Eastern cities have dropped in the ranking, mainly because price increases on goods and services have been more moderate here than in our benchmark city, New York,” Nathalie Constantin-Métral, principal at Mercer, said in a statement.
“Slight decreases in expatriate accommodation costs were also observed in Abu Dhabi and Dubai,” she added.
The annual survey, based on a basket of everyday items including the price of a cup of coffee, one litre of petrol and the cost to rent a two-bedroom apartment, ranked Beirut third most expensive city in the Arab League and 67 globally.
Tokyo was awarded the top spot as the world’s most expensive city followed by Luanda in Angola, Osaka, Moscow and Geneva. At the other end of the list, Karachi remained the cheapest for the second year running, behind Islamabad (123) and Managua (122).