Doha Qatar - An Expats Experience

Having been an expat in Bahrain before moving to Qatar, Annabel had some idea of what to expect in a Middle Eastern Country as well as the experience of being an expat. This is what she has to tell us about moving to Doha in Qatar :

I am originally from South Africa - Johannesburg, prior to this we lived in Bahrain for 18 months and have lived in Doha now for 2 years and 9 months.

We live close to the sea and take our
dogs walking on a daily basis

What was your first impression of the city / country you moved to? 
Bit of a mix impressions – some areas were very First World with fancy hotels and high rise buildings and yet other parts of the country looked very scruffy and dirty.

What do you like the most about where you are living now?  
The weather, the fact that we live on the lagoon and walk our dogs on the water’s edge every evening.  
The desert and what that has to offer.  
The amazing people we have met from all cultures.  
Our fantastic church (we were not sure if we would find a church in a Muslim country).

What do you like the least about where you are living now?  
The only thing that I don’t like is the fact that I am far away from my family & friends back home.

What do you do for fun?  
Cycling – and particularly enjoy cycling in the desert.  
Kayaking, eating out, going to theatre or shows (Jazz etc), horse shows (dressage, show jumping and races), watching camel racing, camping in the desert, swimming, entertaining.  
Going to gym, spinning, Pilates etc.

Cycling Group

What is the funniest / strangest cultural experience you have had?  
When going to a water park was told by the staff that I cannot go down the slip and slide with my t-shirt on as it is dangerous and might hook and yet a couple of minutes later I saw a lady going down in her full abaya (now that I would have thought would hook)  

How did you find the cost of living compared to your home?   More or less expensive? Why? 
Oh definitely more expensive – everything is about 3 times more expensive because everything is imported and of course there are loads of designer stores, so you really have to shop around to find the discount or cheaper stores.  
The souq is a good place to pick up bargains, but you can’t buy everything at the souq.

Did the company help with your move? How?  
Yes they did, but not substantially – so we just moved our most personal goods (and did not include furniture in our move)

 Does your company pay for any of the following -

Basket Group	Yes	No
Clothing		x
Communication (e.g. Internet; Telephone)		x
Education (e.g. Children’s School Fees)		x
Furniture & Appliances (e.g. Semi-Furnished Housing)		x
Groceries		x
Healthcare (e.g. Medical Insurance; Medical Facilities)	y
Household Accommodation (e.g. Housing or Housing Allowance)	y
Personal Care		x
Recreation and Culture (e.g. Fitness Club Fees)		x
Restaurants, Meals Out and Hotels		x
Transport (e.g. Company Vehicle or Transport Allowance)		x
Air Fare Home each year		x
** The Education and home airfares were all incorporated in the total package – so it is up to us how we want to spend that.

Did you do research before your move on what you needed to earn to maintain or increase your standard of living?
Yes – and having a brother in law working in the Middle East made it easier as he could guide us on the cost of living and salaries etc

If so, what research did you do?
Loads of internet research and talking to other people who have lived in the Middle East

What do you find expensive in your Host city?
I think everything is more expensive except cell phone charges and petrol.

Do you have any advice for readers on becoming an expat and the type of research to do before hand?
We found that it doesn’t matter how much research you do (particularly on the culture) you will only really understand it once you are in the country.  
Having said that, you can never do enough research or talking to people who have been there before is the best way to understand the ex-pat life.  
Some advice that was given to me which really turned out to be very true “is give yourself 6 months to feel at home”  so if you having those down days, just persevere and definitely have an open mind and a positive outlook.  
Also very important to accept invitations from people as the quicker you meet people and find your hobbies the more settled you will feel.  
As a wife who moved for my husband’s job, it is also very important to drive and become independent as quickly as possible.  
Join clubs and societies to find like minded people.

Any favourite websites  / blogs about where you live, that can help others with their move?
www.qatarliving.com,
www.marhaba.com.qa
Facebook groups : South African’s in Qatar, SASCOM Qatar; SA Ladies in Qatar

Do you have a blog or website?
No – we used to do monthly newsletters to keep family in the loop of what we were up to and what living abroad was like – but unfortunately one’s life is just as busy living as expats as living in your home town.  This then becomes a yearly newsletter.
 

Beautiful landscapes and sites to see while cycling in the desert

Xpatulator.com provides up-to-date cost of living data for over 700 locations worldwide, employers and employees can calculate how much is needed to earn in another location to have a similar spending power. Steven McManus is a Remuneration and Benefits Consultant and founder of  http://www.xpatulator.com

Becoming an Expat in Doha? Here are a Few Cultural Tips....

The beautiful Doha Skyline

Qatar is found in the Arabian Gulf boarding Saudi Arabia, Doha is the capital and largest city.

As an expat the risks associated with moving to Qatar are rated as low with crime levels extremely low and mainly non-violent such as petty and opportunistic theft, burglary, robbery, and fraud with terrorism representing a latent risk. Foreign personnel and interests may be targeted by local extremist groups or individuals seeking to launch small-scale, spontaneous or indiscriminate attacks.  Assaults and violent crime against foreigners occur rarely.

General Cultural Tips
Qatar follows the strict Wahhabi interpretation of Islam and you should dress conservatively by covering arms and legs, this is applicable to both men and women
Handshakes are common upon meeting and leaving, however locals do not shake hands with members of the opposite sex, rather greet with a nod of the head.
A younger person is expected to always hold open a door for someone older, the elderly are highly respected and valued.
The left hand is considered unclean and is not used for eating, greeting or accepting gifts.
Family values and privacy are regarded as important in Qatar.
If you are looking at opening a business as a foreigner, you are not permitted to own property or a business without a Qatari holding at least 51% of the investment.
Alcohol is off limits to all Muslims and can only be consumed by non-Muslim visitors in hotels or private residences, it is illegal to carry a bottle of alcohol in your car to another destination (unless from the depot to your residence) or to bring a bottle into the country  and may encounter difficulty with authorities if this is contravened. Visitors not staying at a hotel will also be required to take membership of the hotel 'club' before being allowed in to drink, if visiting a hotel that you are not staying in .
An alcohol licence is required and has to be approved by your company before you can purchase such, there is only one depot where alcohol and pork (at the moment) are available to foreigners.

Business Cultural Tips
Business conduct is formal, before beginning a meeting, small talk is customary and a personal introduction is helpful with the exchange of business cards.  While business card can be in English, they should have an Arabic translation on the reverse side.
People, in general, are punctual and expect the same in return and appointments must be made and kept.
Tea or coffee is served before meetings begin and it is rude to refuse, remember to hold the cup in the right hand.
It is acceptable for people to receive calls and visits during meetings, and for participants to enter and leave during the discussion.
Men should wear a suit and tie for business meetings, while women should wear a modest cotton or linen dress that covers both arms and legs.
English is the language of business, but knowledge of a few Arabic words is appreciated such as greetings and farewells, thank you and please.
Labour law gives preference to hiring Qataris first, then other Arabs, and finally to other foreigners.
Smoking is acceptable, however wait for others to light up first as smoking is prohibited in some buildings.

Businesswomen
Foreign females can travel alone to Qatar and conduct business, however it is advisable not to travel alone or take a taxi on your own.
Although restrictions on dress are less severe than in neighbouring Saudi Arabia, it is advisable to dress modestly.

Women should follow commonsense security precautions such as:
Dress conservatively.
Observe and respect local clothing customs and adhere to conventions for travel in conservative Muslim countries.
Politely refuse invitations that would take you beyond your personal comfort levels.
Your hotel may offer women-only floors; enquire about them upon booking your room.

Tipping
A service charge of about 10% is usually included in hotel and restaurant bills, in which case additional tipping is not necessary. If a tip is not included, it is customary to pay an additional 10%. Although taxi drivers do not expect a tip, rounding off the amount due will be appreciated.

Working week: Sunday-Thursday
Weekend: Friday and Saturday
Government office hours: 07.00-14.00
Banking hours: 07.30-13.00
Oil companies generally work a half-day on Thursday.
During Ramadan, business hours are reduced and public offices tend to reopen for several hours after iftar (the breaking of the fast).

Qatar is ranked as a some hardship location by Xpatulator.com.

Want to know more about the cost of living in Qatar? Calculate how much you need to earn in Qatar to have the same spending power that you have now. Register, Purchase and Run the Salary Purchasing Calculator (SPPP).

Using the Salary Purchasing Power Parity Calculator (SPPP)

Quality of life may be the single most important deciding factor for workers considering an overseas assignment. As someone considering a posting to one of your company’s foreign offices, or as a human resources manager seeking to retain the best people in your global workforce, being able to calculate a compensation package that affords an equivalent quality of life helps both employer and employee feel they are getting a fair deal.

The SPPP calculator compares compensation packages between the home office, or where the employee is now, and a new assignment in a different country, by measuring relative purchasing power. A compensation package that affords the same purchasing power as the current location is calculated for the host destination. The salary is adjusted to account for differences in exchange rate, the availability of goods and services and other relative differences.

Establishing Your Home Purchasing Power

Purchasing power is calculated by regularly checking the local cost of a wide range of common goods and services and establishing standard cost per unit measurements that can be compared between locations. Xpatulator uses approximately 200 items such as monthly rent, the cost of milk and the price of gas. Items are then grouped into 13 different baskets, such as education, clothing, transportation, groceries, etc.

The baskets are weighted as a percentage of total living expenses based on surveys of how expat workers actually allocate their spendable income. For example, household costs like rent, utilities, home insurance and property taxes are weighted as 30% of the total cost of living.

Which Baskets Are Included In Compensation Package Calculations

Depending on the location, certain costs, such as housing, education and transportation may be arranged for, and paid directly by the company. If, for example, housing costs are to be borne by the worker, then this basket is included in the calculation. If housing is to be provided by the employer, that basket is removed.

Adjusting for Employer Borne Costs and Taxes

When inputting the home salary to the calculator, include only the amount that the employee would normally spend on baskets that will not be covered by the employer at the host location. For example, an employee earning $100,000 USD may typically spend $24,000 annually on rent/mortgage and utilities. If housing and utilities are being provided by the employer at the host location then $76,000 ($100,000 - $24,000) would be used to calculate the salary required to provide equivalent purchasing power.

To adjust for differences in taxes it is recommended that the net salary be used in the SPPP calculator. The applicable tax treatment of the employee at the host destination then needs to be factored in to provide a sufficient after tax salary.

Adjusting For Hardship

Social and political circumstances may impact an employee’s quality of life in ways that are difficult to measure easily. Xpatulator provides a hardship rating for over 700 locations worldwide based on things like political stability, social freedom, availability of quality education and difficulties associated with learning a new language. A hardship adjustment is calculated based on the relative difference between the hardship rating of the home location and the overseas assignment.

Using the SPPP Calculator for Multiple Locations

If you are comparing offers from several different locations use the SPPP calculator to calculate the adjustment between the home location and each host location separately. If you are an HR manager trying to insure that your company is compensating a group of comparable employees fairly, this method also gives you the most consistent way to compare different locations.

SPPP DEMO

Using the International Assignment Management (IAM) Calculator

One of the most common, but also one of the most complicated to administer approaches to compensating an employee while they are on an overseas assignment is to use the buildup or balance sheet approach. This approach normalizes the employee’s overseas compensation with what they would earn in a similar position at the home office.

The Xpatulator.com IAM calculator allows HR departments to calculate an equitable package of compensation and benefits during the employee’s overseas assignment. At the end of the assignment the employee is able to maintain the same relative purchasing power and standard of living when they return to the home base salary and benefits structure. The IAM calculator is recommended for extended overseas assignments of from 6 months to 5 years.

Here are the major components used to calculate an overseas assignment compensation package.

Home Net Salary

The employee’s home net salary is calculated using their gross cash payments minus any variable payments such as performance bonuses. Hypothetical tax is then subtracted to calculate the net salary. From this amount the employee is expected to spend 40% on essential living expenses and 60% on discretionary spending such as savings, vacations, maintaining a residence at their home location etc.  

Home Component

The home component of the employee’s compensation typically includes their discretionary spending amount plus hardship and expatriate premiums. This amount is paid in the home currency. (60% Net Salary + Location Hardship Premium + Expatriate Premium)

Hardship premiums help to offset relative quality of life issues that employees and their families are likely to encounter while on their overseas assignment. Xpatulator.com maintains hardship ratings on over 700 locations worldwide and calculates a hardship premium based on the relative difference of the hardship rating between the host and home locations. 

The expatriate premium is an incentive offered to employees to encourage them to take overseas assignments. The international standard is 15% but this number can be adjusted based on company policy or negotiation.

Host Component

The host component includes the amount needed for essential living expenses adjusted for any differences in the cost of living. It is typically paid in the host location currency. (40% Net Salary X Cost of Living Difference X Exchange Rate)

The difference in the cost of living is calculated using the Xpatulator.com Cost of Living Index (COLI). The COLI uses price information on approximately 200 common goods and services in each location. Data is verified and updated quarterly by trained analysts. Price information is grouped into 13 baskets of related expenses such as groceries, communication, education etc. The COLI baskets are weighted based on surveys of actual expat spending habits and the applicable COLI uses only those items that the employee will be responsible for paying out of their salary.

Benchmark Housing Allowance

The host location will typically be responsible for providing housing or reimbursement for housing. The IAM calculator includes a benchmark housing allowance based on the host location and the employee’s level and family size.

Transportation Allowance

If company transportation was provided at the home location, that benefit will typically be extended in the host location. If transportation was the responsibility of the employee at the home location and they will receive company transportation or a transportation allowance at the host location, then that amount should be excluded in the calculation of the employee’s net salary. The IAM calculator provides a benchmark transportation allowance for each host location.

Medical, Education and Benefits

Providing appropriate medical services and maintaining equivalent quality education for the employee’s children are normally the responsibility of the host location. Where appropriate, private and/or boarding school may be included.

Company benefits such as retirement plans and performance bonuses will continue to be paid as part of the home component of the employee’s compensation package.

Compensation for Your Global Workforce - Using the Xpatulator Cost of Living Index Calculator

The global economy offers unique opportunities for companies doing business internationally. With opportunities come challenges and managing a global workforce requires reliable information on the cost of doing business and not every source of business information is created equal. Xpatulator has created a Cost of Living Index (COLI) calculator that is tailored to the needs of global companies and managers responsible for overseas workers.

Verified Information

Xpatulator uses up-to-date data collected and verified by our own expert analysts to provide the most accurate cost of living information available. Our proprietary database is updated quarterly with the latest price information for over 700 locations around the World. We collect prices on approximately 200 common goods and services.

Weighted to Reflect Actual Expat Worker Lifestyle

Some living expenses will impact your employees to a greater degree than others, so our cost of living data is grouped into 13 related baskets of goods and services, such as household, transportation and education. Each basket is weighted based on extensive surveys of expat worker’s spending habits to reflect the actual cost of living differences that your overseas workers will experience.

Based on Your Home Office

The COLI calculator uses your home office or whichever location you choose as your benchmark and sets the cost of living for that location as 100. You can then easily compare the cost of living at all your overseas offices with your home office.

Adjusted For Your Company’s Individual Benefits Package

If you are providing direct benefits like housing, private education or transportation at some or all of your overseas locations you can easily remove those baskets of benefits to see the impact they have on a specific cost of living index. You can calculate a reliable COLI on a location by location basis or even on an employee by employee basis.

When a certain basket is removed from the COLI calculation, that item’s weighting is removed and the COLI is calculated for the expenses that your employees will be paying directly from salary. This gives you the advantage of being able to assess the relative impact of paying for certain benefits directly.

Recruiting and Retention Advantages

Choosing to offer benefits where they have the greatest impact in reducing your employee’s cost of living can give you an advantage in attracting and retaining top talent. Having a tool like the Xpatulator COLI calculator also lets you highlight the value of benefits to your employees compared to direct salary adjustments or cost of living allowances.

Controlling Your Costs

In some cases there may be benefits to your bottom line by paying certain costs directly. Medical, housing and transportation are common benefits that some companies elect to pay themselves rather than have employees paying for with after tax dollars.

You can also equalize compensation for different employees that may not need or want some of the benefits that you have available. Quality private education is a benefit that families with school age children will place a high value on while individuals and couples will not. By talking with your employees about how specific benefits will affect their cost of living you can provide the most valuable compensation package while keeping an eye on your bottom line.    

COLI DEMO

International Cost of Living Rankings for April 2014

Luanda, Angola retains its #1 ranking making it the most expensive destination in Africa and in the world for expats.  This is due to its costly accommodation where expatriate housing is extremely expensive, and imported produce and international private schooling excessively costly. 

Caracas comes in at #2, this once sort after expat destination has experienced rampant inflation, produce shortages and tight government controls on foreign exchange have pushed it up the rankings. As the World’s fifth largest exporter of oil, Venezuela was once a top destination for skilled foreign oil and gas workers. However Calgary, Canada is now benefiting with an influx of those expats leaving Caracas due to strict government regulations which are limiting the hiring and compensation of these workers, as well as by the soaring cost of living.

Oslo which ranks #3, in contrast to Luanda and Caracas enjoys low inflation, low unemployment, and one the highest GDPs per capita in the World. An expat haven?

Top Ten International Cost of Living - Cities - April 2014

Rank	Country and city	Region	Previous Quarter Rankings
1	Angola, Luanda	Africa	1
2	Venezuela, Caracas	Americas	5
3	Norway, Oslo	Europe	7
4	Singapore, Singapore	Asia-Pacific	13
5	China, Hong Kong	Asia-Pacific	6
6	Switzerland, Zurich	Europe	2
7	Switzerland, Geneva	Europe	4
8	Monaco, Monaco	Europe	11
9	Japan, Tokyo	Asia-Pacific	12
10	Australia, Sydney	Asia-Pacific	17

Top Twenty International Cost of Living Rankings Incl. Countries - April 2014

Rank	All Areas, Country and City	Region	Previous Quarter Rankings
1	Angola, Luanda	Africa	1
2	Venezuela, Caracas	Americas	5
3	Angola, All Areas	Africa	3
4	Norway, Oslo	Europe	7
5	Norway, All Areas	Europe	9
6	Singapore, Singapore	Asia-Pacific	13
7	China, Hong Kong	Asia-Pacific	6
8	Switzerland, Zurich	Europe	2
9	Switzerland, Geneva	Europe	4
10	Venezuela, All Areas	Americas	10
11	Monaco, Monaco	Europe	11
12	Switzerland, All Areas	Europe	8
13	Japan, Tokyo	Asia-Pacific	12
14	Australia, Sydney	Asia-Pacific	17
15	USA, New York (Manhattan) NY	Americas	15
16	Russia, Moscow	Europe	14
17	Bermuda, Hamilton	Americas	18
18	Denmark, Copenhagen	Europe	19
19	United Kingdom, London	Europe	20
20	Liechtenstein, Vaduz	Europe	16

For the full cost of living and regional rankings go here