Higher Rentals and the Rising Cost of Living Driving Qualified and Experienced Expatriate Labour Force out of the Country?

"Speaking on the issue, Al Hajri said that higher rentals and the rising cost of living were driving qualified and experienced expatriate labour force out of the country and this was harming the national economy".

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Law to curb rent on anvil
Web posted at: 9/25/2007 2:54:0
Source ::: The Peninsula

Dr Saif Al Hajri, Sheikh Faisal bin Qassem Al Thani and H E Yusuf Hussein Kamal discussing inflation at the Green Tent.

Doha • Qatar is expected to come out with a law to tackle the issue of skyrocketing house and commercial property rents. The Minister of Finance and Acting Minister of Economy and Commerce on Saturday hinted that a legislation to deal with the issue of rents was likely to be enforced.

“The proposed law would take into consideration every aspect associated with the rentals,” H E Yusuf Hussein Kamal said, speaking on the issue of galloping inflation in the country at the Green Tent. Qatar has taken several steps to check the spiraling rents and one of them is that demolitions of old buildings has been stopped.

Plots of land have been allocated to companies to build housing units for low-end users. Licences have been issued for new cement and other building material manufacturing units to ensure that construction materials are available locally at cheaper rates.

The Green Tent is being hosted by the Center of Environment Friends (CEF) as part of Ramadan observance. Present were Sheikh Faisal bin Qassem Al Thani, chairman of the Qatari Businessmen's Association, and Dr Saif Al Hajri, among others.

Yusuf Hussein said that the economy ministry had recently conducted a study on some 48 fast-moving consumer goods (FMCG) in Qatar and found out that some of these commodities were costlier in Kuwait and Dubai and cheaper in Saudi Arabia.

The study was conducted after widespread rumors that local traders were manipulating the prices of essentials and other consumer items of daily use. The findings suggest that inflation is not restricted to Qatar or the region alone, but it is a worldwide phenomenon.

The minister said that there were some consumer items which had, in fact, become cheaper in the country as compared to last year.

He, however, admitted that escalating rents were the single largest contributor to higher inflation as they (rentals) had soared by as much as 168 per cent over the past two years. A large portion of one's income is being spent on house rents alone, rued the minister

Pointing out that inflation was 12.8 per cent in the second quarter (Q2), he cited higher economic growth as the main culprit. To be honest, the growth has been much more than the country can handle and this is what is pushing the prices up.

Speaking on the issue, Al Hajri said that higher rentals and the rising cost of living were driving qualified and experienced expatriate labour force out of the country and this was harming the national economy.