Monday, July 25, 2011
By Abdullahi Jamaa
is ranked the most expensive city in the Muslim and Arab world as the cost of
living in most of cities around the globe hits record high in recent years.
to an economic survey by Mercer, a global leader in human resource consulting,
outsourcing and investment services, Djibouti and Khartoum are ranked among the
top 50 most expensive cities in the world.
“Two main factors determine a city’s ranking
in Mercer’s Cost of Living survey: 1. the relative strength or weakness of the
relevant currency against the US dollar over the prior 12 months; and 2. price movements over the prior 12 months
compared to those in New York City as the base” indicated the survey that was
done in March 2011.
ranking in cost of living is attributed to its skyrocketing rise in
accommodation and housing expenses, raising the general cost of living for
to Mercer, Tunis remains the least costly in the Arab region as the rankings of
four Arab cities increased in 2011, while those of the remaining 16 cities
dropped this year.
survey covers 214 cities across five continents and measures the comparative
cost of over 200 items in each location, including housing, transport, food,
clothing, household goods and entertainment.
the world’s most comprehensive cost of living survey and is designed to help
multinational companies and governments determine compensation allowances for
their expatriate employees” Mercer survey
ranked cities are dominated by Africa, Europe and Asia as Luanda in Angola
remained the world’s most expensive city, and Karachi in Pakistan maintained
its status as the least costly city globally.
Constantin-Métral, Senior Researcher at Mercer responsible for compiling the
ranking each year, commented: ““During the period of data collection for this
year’s survey the world witnessed an incredible number of natural disasters and
political upheavals that have all affected the lives of expatriate employees to
some extent. Currency fluctuations and the impact of inflation on goods and
services – petrol in particular -have led to some reorganisation of the
“Overall, the cost of living in cities across
Europe has remained relatively stable, while in Africa the picture is patchy
with the limited availability of accommodation leading to increased living
costs in some key cities". Said Ms Constantin-Métral.