Update: 2008 Qatar Inflation - 17%
From the Peninsula today:
“We expect inflation in GCC countries to add 2-3 points in 2008 above its level in 2007 ... In Qatar for instance it is expected to reach 16-17 percent in 2008 from 13.7 percent in 2007,” Muhaissen told Reuters in a telephone interview, adding that his forecasts were on the basis of present policies.
I can't believe inflation here may hit 17%, while my Manager gave me a measly 3% increase. What so many people say is true, once you accept your offer and mobilise, your raises won't even come close to inflation and you will earn less and less each year until there is no point being here.
Qatar's inflation was forecast to remain high at over 8 percent in 2006, the Qatar-based newspaper Gulf Times reported on Friday.
The forecast was made by Qatar National Bank (QNB) in its soon- to-be-published Qatar Economic Review, said the times.
According to the QNB, the prices of most essential items in Qatar had been rising, which was primarily due to the impact of rent spike on commercial and trading establishments.
The Qatari housing sector saw a steep increase by 26.2 percent in 2005, after a rise of 16.2 percent in 2004 and 18 percent in 2003.
The recent 50 percent increase in cooking gas prices and last year's markup in petrol tariff have also pushed up the prices of essential commodities and foodstuff.
Quoting the Qatari Planning Council, the QNB said inflation stood at a record high of 8.8 percent in 2005 compared to 6.8 percent in 2004.
Qatar's inflation hovered around 2 percent till 2000.
Analysts concerned believe inflation is unavoidable in a rapidly growing economy. The Gulf country's economy grew by 27.1 percent in 2005-2006 fiscal year, and the forecast for 2006-2007 is 17 percent.
"When your economy is growing at over 27 percent or even at 17 percent, there ought to be some inflationary pressure," an analyst was quoted as saying
My sponsor (government organzation) refused to transer my RP/sponsorship because of new directives issued in March this year. They told me I can not work for minimum period of 6 months in Qatar. I have new job in Saudi at 50%+ increase in salary. How backward thinking is Qatar in it's labour policies? Very!!!
above this they have tighten the rules of sponsorship transfer and also stopped issuing employment visas for few countries ...
Govt. has to think and do something to make necessary changes in their Ministry of Labour/ MOI/ MCC laws
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Well said Dohasteve
But our workforce is resigning in batches of 20 at a time, because the Chairman won't approve any increments and people are getting far better offers elsewhere in the GCC.
Unless and until the labour market truly becomes a free labour market, most private companies will do nothing about inflationary increases until it is too late.
How difficult is it to realise that it's far cheaper, both in hard and soft costs, to give somebody who has already been with you for two years a decent pay rise, than it is to bring in new people from the Philippines or Malaysia? People for whom you have to pay agency fees, ticket costs, immigration expenses, and then wait until they are up to speed with your company and your business.
Yet another example of false economies being forced on managers for the sake of the accountants being able to save a few Riyals in the short term
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Son, if you really want something in this life, you have to work for it. Now quiet! They're about to announce the lottery numbers. - Homer Simpson
poor people who has been here for long time...who has their offers 5 or more years ago...they should now bring money from their countries to stay alive..:))
China and India do not have high liquidity in the market due to comparatively stringent currency controls. Currency outflow, interest rates,inflation rates,currency trading/hedging, base lending rates, income tax, corporate tax, import tariffs, etc are heavily regulated to protect their respective economies. Yes, they may have large trade surpluses and large consumer bases but their vaults are oveflowing with US Dollars, the US being a major trading partner for both countries.
However, this scenario cannot be compared to the GCCs. Venezuela and Libya are among the few OPEC couintries that are buckling the trend of trading their oil in US Dollars with encouring results. However, it is not the case with GCC countries for various reasons.
OrangKedah said:
Kuwait is the only GCC country that has de-pegged its currency against the USD but high liquidity spurred by high oil prices have compounded the situation for them too.
It is world wide dude, Blame it on the new
economic super powers, like China and India.
pegging or de-pegging is not the solution.
Everything is funny as long as it is happening to somebody else.
-- Will Rogers
This problem (high inflation) is across the region due to the same reason. Kuwait is the only GCC country that has de-pegged its currency against the USD but high liquidity spurred by high oil prices have compounded the situation for them too.
I am not sure this is any of the GCC governments' concerns !!!
Don't expect the inflation rates to come down next year or even the next. The same scenario applies across the Gulf Region. There's too much liquidity in the market leading to higher disposable income and incraesed consumer spending and certainly no thanks to the continued pegging of QR to the USD.
Tighter financial controls by the banks is one major step forward...but hey, borrowing money from the banks has become too easy here. So where does the money go? Ans: Out of the country... and here's the puzzle: I believe not all the monies remitted out of this country are by expatriates. Go figure it out.... :)
hope the govermrnt will oblige private companies to increase salaries as it did for gov employees
17% - that's much in a country as qatar.
Can't imagine those who got less than QR 1,000.I feel sorry for them.Huhuhu....
Opppssss... i must plan my year again... LOLzzz
“Our scientific power has outrun our spiritual power. We have guided missiles and misguided men.”
Martin Luther King.
it's a lot, man...
if i am not getting at least 15% increase this year i go home... started getting really tired of it...
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