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Angola's Launda now most expensive cities for expats; Asian cities dominate the list

Source: Middle East Insurance Review | Jul 2017

Angola’s capital city Luanda has knocked Hong Kong off as the most expensive city for expatriates, driven by cost of goods and security, according to Mercer’s 2017 Cost of Living Survey. But Asian cities continue to dominate the rankings, with five in the top 10, while Europe occupied three spots. 
 
   Hong Kong, which is ranked as the most expensive city in Asia for expats by ECA International, is followed by Tokyo (3), Zurich (4), Singapore (5), Seoul (6), Geneva (7), Shanghai (8), New York City (9), and Bern (10). 
 
   The world’s least expensive cities for expatriates, according to Mercer’s survey, are Tunis (209), Bishkek (208), and Skopje (206).
 
   In a rapidly changing world, mobility has become a core component of multinational organisations’ global talent strategy, the survey said. To support the growing number of international assignees working in an increased number of locations, organisations are focusing on evaluating assignments from a cultural perspective, preparing for regional and lateral moves, and modifying compensation approaches to stay competitive. As organisations grapple with these challenges, they are working hard to accommodate the needs of their workforce and to support employees’ careers. 
 
   According to another Mercer’s report “2017 Global Talent Trends Study”, fair and competitive pay as well as opportunities for promotion are top priorities for employees this year – not surprising given the current climate of uncertainty and change.
 
   As a result, multinational organisations are carefully assessing the cost of expatriate packages for their international assignees. This year’s Cost of Living Survey finds that factors like instability of housing markets and inflation for goods and services contribute to the overall cost of doing business in today’s global environment.
 
Middle East rankings
In the Middle East, Tel Aviv jumped two spots from last year to 17 this year and continues to be the most expensive city in the region for expatriates followed by Dubai (20), Abu Dhabi (23), and Riyadh (52), which have all have higher rankings this year. Cairo (183) is the least expensive city in the region plummeting 92 spots from last year following a major devaluation of its local currency, while Jeddah (117), Muscat (92), and Doha (81) are also among the least expensive cities in the region.
 
   “Egypt’s decision to allow its currency to float freely in return for a US$12-billion loan over three years to help strengthen its economy resulted in the massive devaluation of the Egyptian Pound by more than 100% against the US dollar, pushing Cairo down the ranking,” said Ms Nathalie Constantin-Métral, Principal at Mercer with responsibility for compiling the survey ranking.
 
   Quite a few African cities continue to rank high in this year’s survey, reflecting high living costs and prices of goods for expatriate employees. Luanda is followed by Victoria (14), Ndjamena (16), and Kinshasa (18). Tunis falls six spots to rank 209 as the least expensive city in the region and overall. M 
 
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