The city of Doha ranked 121st in the world, on the list of the most expensive cities in the world, rising 5 places in the rankings after it ranked 126th last year, according to the annual report on the classification of cities according to the cost of living for the year 2024, which was issued by “Mercer”, one of the leading companies of Marsh McLennan. In redrawing the features of the work sector, reshaping retirement and investment outcomes, and ensuring true health and quality of life for individuals, this classification provides valuable insights that help employees plan the compensation strategies they will receive for their work in other countries.
As for other cities in the region, Dubai ranked 15th globally, Abu Dhabi ranked 43rd, Riyadh ranked 90th, Jeddah ranked 97th, Manama ranked 110th, and Kuwait ranked 120th.
In turn, Hong Kong maintained first place in the world in this year’s ranking, followed by Singapore, while the Swiss cities of Zurich, Geneva and Basel completed the group of the top five in the ranking of the most expensive cities in the world in terms of costs of living.
“The cost of living has had a tangible impact on multinational organizations and their employees,” said Yvonne Traber, Global Head of Mobility at Mercer. “It is therefore important for organizations to stay informed about cost of living and inflation trends, and seek employee feedback on these issues in order to effectively manage their impacts.”
At the global level, the continent of Asia includes the two most expensive cities in terms of costs of living, primarily due to high housing rents. These important economic centers also attract a large number of expatriates, which in turn leads to an additional increase in the costs of goods.
Five European cities occupy positions among the top ten cities in this global ranking, including four Swiss cities, in addition to London, which jumped nine places to occupy eighth place. Although the cost of living in Europe varies according to cities, the European Central Bank expects the annual inflation rate in the euro area to continue to decline, which means that costs can stabilize as European economies recover from the recent setbacks they have witnessed.
In addition, the cost of living in the United States will continue to be a major problem during 2024, as all American cities were ranked among the 100 most expensive cities, while seven American cities ranked in the top twenty, respectively. For its part, Canadian cities occupied the lowest positions in the ranking of North American cities, thanks to the great flexibility shown by the Canadian economy and its performance exceeding expectations. Toronto was the most expensive city in Canada (92nd place), followed by Vancouver (101st place). The cost of living in Mexican cities increased significantly from last year due to the rise in the value of the peso in 2023. Mexico City ranked 33rd, up from 79th place it occupied in 2023, while Monterrey came in 115th place, rising from 155th place last year.
In South America, Montevideo, the capital of Uruguay, was ranked as the most expensive location for international staff (42nd). In addition, many cities in the region witnessed significant movement compared to 2023 due to fluctuations in currency exchange rates and housing rents, as the city of Santiago in Chile fell 73 places to reach 160th place in the ranking, while Bogotá in Colombia registered a jump of 40 places to reach 160th place in the rankings. To 174th place in the rankings.
High inflation in the Pacific region is expected to put pressure on international employees during the current year, as Sydney in Australia was ranked as the most expensive city in the Pacific region (58th place), surpassing the city of Noumea in New Caledonia, which advanced 10 places. To reach position 60 in the world rankings.
The list of African cities that occupied the highest positions in the global rankings included Bangui in the Central African Republic (14th place), the city of Djibouti, the capital of Djibouti (18th place), and the city of N’Djamena in Chad (21st place). It should be noted that the Nigerian city of Lagos recorded a remarkable decline in the ranking by 178 places to reach 225th place, which is the largest change in the world compared to last year 2023. This change is primarily due to currency fluctuations, including the repeated declines in the value of the Nigerian naira. Mumbai ranked 136th as the most expensive city in India.
The Cost of Living Cities Ranking report covers 226 cities around the world, measuring the comparative cost of more than 200 items in each location including transportation, food, clothing, household goods and entertainment. The data provided provides essential information that employers need in order to design transparent and efficient compensation packages for their international employees. The numbers used in Mercer’s cost of living report and rental housing cost comparisons were taken from a survey conducted in March of 2024.