Early settlers of Qatar, which shows us friendly home closeness, notice that we need to allocate more money in order to live on here. Namely, the cost of living and doing business has increased in Qatar in the last decade.
The situation is unfortunately same in clothing and food supplying. However, there is no need to mention that the most crucial expenditure item is rent costs. Foreigners and /or companies needing to rent offices or houses in Qatar have to admit the rent expenditures above standards in comparison with develop countries or examples of the active trade centres.
However, it is obvious that the increase on rent and other expenditure items are not the result of increase in demand against limited supply. In other words, when Qatar is observed, it is not possible to notice many rental houses, residences or offices or lack of supply for a product and the increase in demand for a product.
Unfortunately, the reason of the increase on house and office rents is the landlords’ being reluctant seller and their aim and power of letting their real estate empty until they receive the amount they desire. Under these circumstances, the question “how will real living quality and economic direction be affected now and in the future?” is the main item of agenda.
When answering this question in a simple classification with regard to activity form of economic life concept, the results below will be reached: Traders selling goods by procuring increase the sale prices order to meet his loss because of increasing rent expenditures.
This situation increases the cost of living in Qatar, in a sense real inflation; and direct traders supply poor of quality products with higher prices.
Companies of service sector cannot reflect their increasing rent expenditures to their prices. The number of service sector companies entering to the country is increasing whereas professional companies and employees leave the country market since they don’t accept the higher service costs given by the service sector companies.
On the other hand, buyers considering this cost and procuring services reject the price of these services/products/wages and avoid paying these costs. This circumstances cause qualified traders and professionals leaving the country to unqualified and lack of experience firms.
Thus, more problems occur for the companies procuring these services in whole country. Service sector includes the activities of developing, beautifying and growing economic and social life. So, stating that these course of events will interrupt Qatar’s developing, and face Qatar with extremely unqualified support won’t be incorrect. The situation for the construction-undertaking companies is more different. Contractor firms consider these expenditures when a project is undertaken; so they have the power of reflecting these expenditure totally to the employer. It means that the employer companies in fact finance these costs, in other words this inflation.
Taking into consideration that the biggest employer firms are government based and/or Qatar economy is mostly based on formal sector (mostly construction/undertaking), the State of Qatar is currently bearing the inflation cost itself. However, the problems of commercial and service sectors cannot be solved because of this inflation.
Consequently, the locomotive of the inflation in Qatar is high rental expenditures; this circumstance makes the general life more expensive; if a solution isn’t found, The State of Qatar Treasury will meet (is currently meeting) the maximum loss; and corrode the targeted mixed population quality and demand of entering the country market.
As a last word, we would like you to know that our article is not a criticism but a statement. A fellow (ally) is responsible for telling the truth and protecting his fellow (ally). Therefore, we hereby would like to state that we have written up this article to contribute our second country, where we live happily and in safety, Qatar’s future and indicate the concerns we have.