Manama fourth most expensive city in Middle East

Manama : Manama is the fourth most expensive city in the Middle East, according to Worldwide Cost of Living (WCOL) 2017 Index compiled by the Economist Intelligence Unit.

Manama has jumped twenty places in cost of living index from last year’s index. The capital now ranks as the 71st most expensive city in the world. 

Amman in Jordan, ranking 29 globally, is ranked the most expensive city in the Middle East while Dubai, UAE was the second most expensive in the region and Abu Dhabi, UAE was the third most expensive. 

The Worldwide Cost of Living is an bi-annual that compares more than 400 individual prices across 160 products and services. These include food, drink, clothing, household supplies and personal care items, home rents, transport, utility bills, private schools, domestic help and recreational costs.

Cost of living will fluctuate in the coming year, the report stated.  

“The cost of living is always changing and there are already indications of further changes that are set to take place during the coming year. Oil prices bottomed-out in 2016 but are set to rise again during the coming year. Similarly, other commodity prices are expected to rebound from 2017, after five consecutive years of decline. At the very basic level, these will have an impact on prices, especially in markets where basic goods make up the bulk of shopping baskets. But there are further implications. Even rising oil prices will still be well below levels enjoyed just a few years ago, which will continue to weigh on reliant economies. This could mean austerity, economic controls and weak inflation persisting in affected countries, depressing consumer sentiment and growth.” the report stated

The report added that the election of Donald Trump as president of the USA could push up costs. 

“The election of Donald Trump as US president could signal significant upheaval in trade agreements and international relations, which may push up prices for imports and exports around the world as treaties unravel or come under scrutiny,” it stated.