High Rents Propel Kuwait To Top-twenty Ranks Globally

Apartment renters in Hong Kong pay the highest rents in the world, with the cost of renting a one-bedroom apartment in the city being on average USD 2,178. Among states in the Gulf Cooperation Council (GCC) bloc, Qatar was the most expensive with an average rent of $1,545 and ranking 4th globally, followed by the UAE in 10th spot globally with an average rent of 1,187. In contrast, the average monthly rent for a one-bedroom apartment in Kuwait City, which ranked 18th globally, was $909 and in the suburbs this was down to $730.

The affordability of rents can be seen as a lesson in the relative relationship between income and cost of living in a city, and could help expatriates when making decisions on taking up employment in a new country. For instance, an expatriate with a stable high income may find renting an apartment in Kuwait to be a bargain relative to Doha or Dubai. But they should also factor in other costs, as well as facilities and amenities available, before taking up an appointment in Kuwait.

On the other hand, someone with a lower income in Kuwait may be attracted to seek employment in Saudi Arabia where a one-bedroom apartment outside the city center can be had for $270 per month, or a third of what it costs in Kuwait. However, making a decision based on apartment prices alone would not be advisable, an expatriate would need to consider other factors and costs as well, including the facilities, amenities and relative freedoms available to expatriates in the country, before deciding to board that flight to Kuwait.

The ranking of most expensive cities based on apartment rents was compiled by the online financial news and opinion publishing website 247wallst.com using data from Numbeo, the online database of user-contributed data about cities and countries worldwide. Accordingly, the ranking needs to be taken with the proverbial pinch of salt.

On a more serious and economical note, Kuwait came in second spot in Sukuk issuance among GCC states during the first quarter of the year. According to Moody’s global credit rating agency, Kuwait was the second-largest issuer of Sukuk after Saudi Arabia, issuing a total of $7.2 billion in sukuks, which also marked a 11 percent increase in issuances year-on-year.

The agency expected issuance activity in other GCC states to remain subdued for the rest of the year, due to the decrease in fiscal deficit resulting from an increase in oil prices. Nevertheless, it expected Kuwait to continue being a strong player in issuances, mainly due to short-term issuances by the Central Bank and long-term issuances by commercial banks in the country, Moody’s also predicted that the total short- and long-term Sukuk issuances in 2021 would reach between $190 billion and $200 billion globally, after recording $205 billion in 2020.

 

SOURCE  :  TIMES KUWAIT

Comments Post Comment

Leave a Comment

Submit