Jump to content
House Price Crash Forum
Sign in to follow this  
interestrateripoff

Inflation Spikes As Qatar Gears Up For Spending Spree

Recommended Posts

http://uk.reuters.com/article/2013/05/01/uk-qatar-inflation-idUKBRE9400J720130501

Five years ago, inflation in Qatar soared into the double digits after the tiny country spent heavily on hosting the 2006 Asian Games. Now, with another government spending spree and an even bigger sports event looming, inflation is on the rise again.

The country of just 1.9 million people plans to spend about $140 billion to build stadiums, roads, railways, a new airport, a seaport and other infrastructure before it hosts the 2022 football World Cup.

Spending on that scale could destabilise a much bigger economy. So recent data showing a sharp rise in inflation is unwelcome - and might, if it becomes a trend, threaten the smooth completion of some of the construction projects.

Government officials and company executives insist they have learned from the last inflation debacle and will be able to avoid another one, partly because they have given themselves more time to carry out the construction.

So will inflation destroy the Qatar economy? I'm convinced the experts have learnt their lesson from last time.....

Share this post


Link to post
Share on other sites

Last year I was getting loads of calls from IT agents offering work out there - but the rates were rubbish. Even when you take into account no tax, assuming you relocated out of the UK fully for the time you worked there, the rates were rubbish and I have heard that it is expensive to live and work there.

The agents themselves admitted that the rates were poor.

Share this post


Link to post
Share on other sites

So will inflation destroy the Qatar economy? I'm convinced the experts have learnt their lesson from last time.....

It depends how many useful free holidays it could dish out to the relevant people. If the ROI is bigger then the investment, all would be well.

Share this post


Link to post
Share on other sites

I actually live there and it's a fascinating place. Watching a city and really a country being constructed in front of my eyes. Inflation is a real fear and rents are eye-watering. It's a bit of a closed loop system and one has to do ones homework before coming to the region. Last year the locals who work for the government got 60% rise and this has filtered directly into inflation, due to the money chasing imported goods. But the Qatari Rial is also Dollar pegged, so Helicopter Bens policies also effect purchasing power.

Petrol is cheap, local foods reasonable, but imported Western things expensive, alcohol and pork available but you pay resteraunt prices when you buy at the one wholesale store it is available. Families say schooling costs are spiralling and because of the growth in expats places at good schools hard to find.

Apart from work and holidays, not a lot to do here and most of the expat population see it as a bolt hole during times of economic strife in their home countries. Many Spanish, Greek, Americans and Brits here and interestingly some Germans....

Most expats from America and Europe involved in Aviation, construction technical management, media and medical. Middle class Indians do the IT and other admin type roles. Also many guys here from the region, Yemen, Iraq, Syria, Lebenon, Eygpt, etc they are mostly small business men and do very well in real estate, cars etc. Then there are the Philipinos, Bangladeshis and Nepalese mainly picking up the manual work, construction jobs.

The one thing I noticed since moving here, is that once you take away NI and income tax. You are surprised at how many jobs are actually worth doing and there is a demand for. This appears to be a fundimantal problem in the west where to change a light bulb in a school it probably cost £100....

Share this post


Link to post
Share on other sites

Most expats from America and Europe involved in Aviation, construction technical management, media and medical. Middle class Indians do the IT and other admin type roles. Also many guys here from the region, Yemen, Iraq, Syria, Lebenon, Eygpt, etc they are mostly small business men and do very well in real estate, cars etc. Then there are the Philipinos, Bangladeshis and Nepalese mainly picking up the manual work, construction jobs.

UK cannot even deport the terrorist and let alone exploiting foreign labours in this way...

Share this post


Link to post
Share on other sites

They're a surplus country

Inflating their economy is good, and inevitable.

Share this post


Link to post
Share on other sites

So will inflation destroy the Qatar economy? I'm convinced the experts have learnt their lesson from last time.....

The reason why this economy is so prone to inflation is that it sits on considerable natural resources compared to its population and its population if we count all the people who live and spend there including the low income workers get paid a pittance in comparison.

Unless they can keep exporting the proceeds of oil sales into foreign debt via their SWF they get a massive wage inflation which narrows the gap between rich and poor and undermines the elite.

If/when the Cypress model gets more widely applied these Middle Eastern elites are going to get toasted one way or another,

Not before time either.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 239 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.