Cost of Doing]
Business in
Bahrain
Manufacturing
November 2015
Contents
1
Executive Summary
1
2
Company Formation
3
3
Land Rental and Construction
4
4
Utilities
6
5
Manpower
8
6
Visa and Labor
9
7
Ports and Customs
10
8
Appendix
12
Executive Summary
1
This report looks at the typical costs associated with setting up and operating a manufacturing business
in the Gulf Cooperation Council (GCC) countries.
The report compares a wide range of costs involved in setting up and operating a manufacturing
business across specific jurisdictions within each of the GCC countries. Some of these are one-time
costs related to setting up of the business and its supporting infrastructure, while others are annually
recurring costs pertaining to operations and regulatory requirements.
The key costs compared in this report pertain to:

Company Formation

Land Rental and Construction

Utilities

Manpower

Visa and Labor

Ports and Customs
The costs have been compared across specific Free Trade Zones (FTZs) and Investment Parks / Cities
within each GCC country and have been benchmarked for the purpose of this report. These include:


Investment Parks / Cities such as:
–
Bahrain International Investment Park, Hidd, Bahrain (BIIP)
–
King Abdullah Economic City, Jeddah, KSA (KAEC)
–
Small and Medium Scale Industrial Area, Doha, Qatar (SMSIA)
Free Trade Zones such as:
–
Jebel Ali Free Zone, Dubai, UAE (JAFZA)
–
Sharjah Airport International Free Zone, Sharjah, UAE (SAIF)
–
Ras Al Khaimah Free Trade Zone, Ras Al Khaimah, UAE (RAKFTZ)
–
Sohar Port and Free Zone, Sohar, Oman (SoharFTZ)
–
Kuwait Free Trade Zone, Kuwait City, Kuwait (KWTFTZ)
All the above FTZs and Investment Parks / Cities allow for 100% foreign ownership, with the exception
of SMSIA in Qatar which requires an approval from the Ministry of Energy and Industry to setup a 100%
foreign-owned industrial company.
Bahrain exhibits the lowest values for a majority of the cost components, thereby presenting an optimal
case for establishing a manufacturing business. At an overall level, the cost for operating a
manufacturing business in the GCC is lowest in Bahrain (BIIP), being 21% lower than the most
expensive location, JAFZA in UAE.
1
The following table outlines the overall cost of operating a manufacturing business across the GCC:
Figure 1: Comparison of Operating Cost1
Average Annual Operating Costs (USD)
Cost Head
BIIP
JAFZA
SAIF
Annual
License
Renewal Fees2
130
1,490
2,030
1,670
13,300
56,200
33,750
33,750
Land Rental3
Manpower &
Visa Cost4
Utility Cost5
Total Cost
RAKFTZ SoharFTZ
KAEC
SMSIA
KWTFTZ
1,000
1,350
1,620
1,700
35,000
21,950
10,150
7,650
1,485,790 1,672,570 1,672,570 1,672,570 1,507,490 1,908,920 1,820,540 1,711,790
154,820
370,420
370,420
370,420
124,430
63,210
62,390
124,290
1,654,040 2,100,670 2,078,760 2,078,400 1,667,910 1,995,420 1,891,300 1,845,430
Source: KPMG Research & Analysis
1
All figures have been rounded off to the nearest 10
2
Reflects the annual cost associated with renewing a license for industrial activity
3
Reflects the average annual cost of renting a 5000sqm plot of industrial land within each FTZ and Investment Park/City
4
Reflects the annual average manpower and visa costs for 65 employees consisting of: 15 unskilled workers, 15 semi-skilled
workers, 10 skilled workers, 7 administrative staff, 7 associates, 5 deputy managers, 4 managers and 2 senior management
members
5
Reflects the annual utilities cost based on a 3,000 sqm built-up area consuming 255,810 kWh of electricity per month and 70m3
of water per month
2
Company Formation
2
Businesses involved in manufacturing activities in Free Trade Zones (UAE, Oman and Kuwait) are
regulated by the respective FTZ Authorities, while businesses not operating within FTZs (Bahrain, Qatar
and Saudi Arabia) are regulated by the country specific Industry and Commerce Ministries.
Company formation costs typically comprise of three key components:

One-time application / registration fees to form a limited liability company, usually nonrefundable

Annual license renewal fees, depending on the type of license held

Minimum capital requirement represents the mandated paid up capital for starting the
business; however, this is not required by some FTZs and Investment Parks / Cities. Moreover,
there is usually no restriction on the usage of the capital once the company has been legally
established.
BIIP has significantly lower Application Fees and Annual License Renewal Fees as compared to the
rest of the FTZs and Investment Parks / Cities.
The figures below include costs for registering a limited liability company with multiple corporate
shareholders, and the corresponding annual license renewal fees.
Figure 2: Licensing and Registration Fees 6
Annual Fees & Application Fees (USD)
Cost Head7
BIIP
JAFZA8
SAIF
RAKFTZ
SoharFTZ
KAEC
SMSIA9
KWTFTZ10
Application Fees
240
4,050
2,700
1,890
2,730
6,750
3,780
6,780
None
None
40,840
27,230
51,950
None
54,950
211,880
130
1,490
2,030
1,670
1,000
1,350
1,620
1,700
Minimum
Capital11
Annual License
Renewal Fees
Source: FTZ Authorities, Investment Park/City Authorities, Bahrain Investor Center, World Bank Doing Business Report 2014, Qatar Ministry of Energy and Industry
6
All figures have been rounded off to the nearest 10
7
Reported figures for application and annual license renewal fees may vary based on specific activity, number of products
produced and other relevant government bodies’ approval fees for example Ministry of Health Permits and Environmental impact
assessments
8
JAFZA has no requirement for minimum capital - However, if a certificate of incorporation is required, USD 27,225 must be
available in the official bank account
Application fees in Qatar range from USD 3,100 to USD 4,460 – average value has been considered
9
Minimum capital requirement in Kuwait range from USD 169,500 to USD 254,250 – average value has been considered
10
11
Minimum Capital requirements may also vary based on the activities of the company
3
3
Land Rental and Construction
All the FTZs and Investment Parks / Cities considered in this report provide land plots on long to midterm lease, for constructing a manufacturing unit. Land plots of 5,000 sqm area across the different
FTZs and Investment Parks / Cities command rentals in a wide range, with average rates starting from
USD 1.53 up to USD 11.02 per sqm per year.
The significant variation can be attributed to supply and demand characteristics in each country,
maturity level of the individual FTZs and Investment Parks / Cities, as well as location of the particular
land plot.
In terms of land rental rates, Bahrain, Qatar and Kuwait lie at the lower end of the spectrum while Oman
and UAE lie at the higher end, with JAFZA in UAE commanding the highest rates.
Figure 3: Industrial Land Rental Rates
Average Land Rental Rates (USD per sqm per year)
Cost Head
BIIP
JAFZA12
SAIF
RAKFTZ
SoharFTZ13
KAEC
SMSIA14
KWTFTZ15
Land
Rental
2.66
11.02
6.75
6.75
7.00
3.78
2.03
1.53
Source: FTZ Authorities and Investment Park/City Authorities
Construction costs vary significantly between the GCC countries, and the same trend reflects for these
costs within the respective FTZs and Investment Parks / Cities. Bahrain offers the lowest construction
costs for light and heavy duty factories, with Qatar being the most expensive. Heavy duty factories can
be categorized as those utilizing large and heavy equipment and facilities and complex processes, such
as the automotive and machinery manufacturing industries. Conversely, light duty factories produce
light weight products such as furniture, apparel and home appliances industries. Heavy and light duty
factories vary in construction costs as structures are required to meet different specifications such as
resistance to chemicals, suppression of shock transfer and heavy load bearing.
Figure 4: Construction cost for Heavy and Light Duty Factories16
Average Construction Costs (USD per sqm)
Factory Type
BIIP
JAFZA
SAIF17
RAKFTZ18 SoharFTZ
Light Duty
Factory
620
630
630
630
Heavy Duty
Factory
700
930
930
930
KAEC
SMSIA
KWTFTZ19
780
740
990
690
990
950
1,150
870
Source: FTZ Authorities, Investment Park/City Authorities, AECOM Middle East Handbook 2014
12
The typical rental rate of USD 11.02 has been reported. However, rental rates may range from USD 6.89 to USD 22.03
13
SoharFTZ is subject to a variable annual rental increase not exceeding more than 2% per annum
14
An average value has been calculated for land rental at SMSIA as rates range from USD 1.35 to USD 2.70
15
An average value has been calculated for land rental at KWTFTZ as rates range from USD 1.02 to USD 2.03
16
All figures have been rounded off to the nearest 10
17
JAFZA construction costs have been assumed for SAIF
18
JAFZA construction costs have been assumed for RAKFTZ
19
Kuwait construction costs have been calculated based on typical construction costs for commercial space
4
Warehouse units are available for rental through private developers or directly from FTZs and
Investment Parks / Cities.
Warehouse rental rates typically vary based on location and facilities provided (such as maintenance
services, warehouse management services). A comparison of the average rental rates for
warehouses located within or nearby the benchmarked FTZs and Investment Parks / Cities indicates
that RAKFTZ, BIIP and KAEC are amongst the lowest while SMSIA in Qatar is the highest.
Figure 5: Warehouse Unit Rental Rates20
Average Warehouse Rental Rates (USD per sqm per year)
Cost Head
Warehouse
Rental
BIIP
JAFZA
SAIF
RAKFTZ
SoharFTZ
KAEC
SMSIA
KWTFTZ
80
130
100
70
110
80
150
140
Source: FTZ Authorities, Investment Park/City Authorities, KPMG Research & Analysis
20
All figures have been rounded off to the nearest 10 and do not include any additional facilities / services
5
4
Utilities
Electricity and Water are the utilities that are most commonly used in manufacturing. Fuels such as
Gas, Petrol and Diesel have different usages based on the type of product(s) being manufactured.
Electricity and water tariffs for industrial consumption can vary based on multiple factors including total
number of units utilized, as well as peak, off-peak and seasonal rates. Bahrain commands the lowest
rate for water, while Saudi Arabia and Qatar offer the lowest rates for electricity. In contrast, the UAE
charges the highest industrial tariffs for the utilization of both electricity and water. At an overall level,
utility charges in Bahrain are less than half of those in the UAE.
Gas prices in the GCC countries ranges between USD 0.75 and 4 per MMBTU with gas prices in UAE
being significantly higher than other GCC countries. In terms of petrol and diesel prices, Saudi Arabia
offers the lowest rate, while UAE has the highest rate. Bahrain offers the second lowest diesel price
and third lowest petrol price amongst the GCC nations.
Figure 6: Average Cost of Utilities
Average Cost of Utilities (USD)
Utility
BIIP
JAFZA21
SAIF
RAKFTZ SoharFTZ22
KAEC23
Electricity (per
kWh)
SMSIA
KWTFTZ
0.05
0.12
0.12
0.12
0.04
0.02
0.02
0.04
Water
(per m3)
0.80
2.44
2.44
2.44
1.95
2.16
1.19
1.79
Gas
(per MMBTU) 24
2.50
4
4
4
1.20
0.75
1
0.80
Petrol
(per liter)
0.26
0.47
0.47
0.47
0.31
0.16
0.26
0.23
Diesel
(per liter)
0.16
0.79
0.79
0.79
0.36
0.07
0.26
0.35
Source: FTZ Authorities, Investment Park/City Authorities, GCC Electricity and Water Authorities and Global Petrol Prices
21
Electricity Tariffs in UAE include a surcharge of 0.02 USD as per FEWA/DEWA tariff structures. Applies to JAFZA, SAIF and
RAKFTZ
22
Sohar electricity tariff is calculated as a weighted average of seasonal tariffs
23
KAEC electricity tariff is calculated as an average of reserved capacity and variable consumption rates
24
MMBTU denotes Million Metric British Thermal Units
6
The figures quoted above are estimated based on average consumption rates of light manufacturing
operations and compare the per unit industrial tariffs for utilizing 255,810 kilowatt-hour (kWh) units of
power and 70 cubic meters (m3) of water, per month. Consumption may vary depending on activity.
Figure 7: Utility Cost per Unit (USD)
7
5
Manpower
For comparison of manpower cost, employees across different categories have been considered,
ranging from Unskilled Workers up to Senior Management.
When comparing the average salary earned by employees working in the GCC manufacturing sector,
Bahrain exhibits the lowest manpower cost for junior positions. Salary cost for the more senior positions
is typically lowest in Oman, with Bahrain being a close second. Saudi Arabia exhibits the highest
manpower cost.
Figure 8: Manpower Costs25
Manpower Costs (USD per month)
Employee Category
Bahrain
KSA
Qatar
Kuwait
UAE
Oman
Unskilled Worker26
390
480
450
440
420
410
Semi-Skilled
Worker27
470
570
540
520
500
490
Skilled Worker
1,320
1,630
1,600
1,550
1,390
1,420
Administration Staff
1,180
1,580
1,510
1,460
1,390
1,270
Executive /
Associate
2,720
3,380
3,340
3,010
3,120
2,650
Assistant Manager 28
3,340
4,150
4,100
3,690
3,820
3,250
Manager
5,540
7,570
7,160
6,260
6,480
5,760
Senior Manager and
above
15,060
18,810
18,000
17,040
16,730
14,890
Source: Salary Explorer Survey, Gulf Business Salary Survey, KPMG Research & Analysis
Salaries quoted above indicate gross monthly salary which includes housing allowance, transport
allowance and medical insurance. These allowances have been calculated as 25% to 50% of the
basic salary, varying across levels.
Figure 9: Annual Manpower Cost29 for a Manufacturing Company (USD ‘000)
25
All figures have been rounded off to the nearest 10
26
Unskilled Worker costs for the GCC have been estimated using Semi-Skill Worker cost differential between Bahrain and the
rest of the GCC countries
27
Semi-skilled worker costs for Kuwait have been estimated using Administration Staff cost differential as compared to Qatar
28
Assistant Manager cost for rest of GCC have been estimated based on the cost in Bahrain, and using a differential as compared
to Manager position
29
Reflects the average annual manpower costs for 65 employees consisting of: 15 unskilled workers, 15 semi-skilled workers, 10
skilled workers, 7 administrative staff, 7 associates, 5 deputy managers, 4 managers and 2 senior management members
8
Visa and Labor
6
Visa and Labor charges represent the cost associated with employing foreign workers, and typically
include the following key components:

One-time entry visa

Work / Residency permit

Medical test

ID card creation
While all the four components mentioned above are required for employing a foreign worker in the GCC,
in Bahrain, a separate one-time entry visa and medical test are not required as the work permit includes
these components.
The annual residency permit renewal forms the larger portion of visa and labor related costs, and varies
significantly across the GCC, with Kuwait being the most expensive. In UAE, the renewal process also
requires the medical test and ID card issuance to be repeated, thereby increasing the overall work
permit renewal cost substantially. Hence, Oman and Bahrain are observed to offer amongst the lowest
cost for work permit renewal.
Figure 10: Visa and Labor Costs
Visa and Labor Costs (USD per employee)
Cost Head
Bahrain
UAE
Oman
KSA
Qatar
Kuwait
Entry Visa30
133 31
68
112 32
540
54
34
Work Permit
(Residency) /
annum 33
265
186 34
261
675 35
327
718 36
Medical test
Nil
243 37
52
41
41
136
ID Card
Nil
100 38
26
230 39
Nil
7
Source: Relevant Foreign Affairs and Manpower Ministries in the GCC and KPMG Research & Analysis
30
Entry Visa is a one off payment and is typically required for temporary entry before applying for a work permit (residency) in
most GCC countries
31
The entry visa fee is only applicable if the employee enters the country prior to an application for a work permit. If a work permit
is applied for prior to the employee entering the country then the single entry visa fee is not applicable
32
Includes an application fee of USD 47
33
All reported work permit figures are annual and are calculated by dividing the renewal fees by the duration of visa in years and
include stamping fees for passports
34
The reported figure is the calculated annual cost for a 3 year visa available at FTZs
35
A work permit in Saudi Arabia is called a labour card and does not imply residency status which is only applicable after being
issued an ID card (Iqama). The reported figure can be lower if localization targets are met however, this is typically not the case
in Saudi Arabia for manufacturing operations
36
The reported figure is half if localization targets are met however, this is typically not the case in Kuwait for manufacturing
37
Medical tests are required for work permit renewals in UAE which can range from USD 162 to USD 243 with the latter typically
applicable in Dubai
38
Renewal of ID cards are required for work permit renewals in UAE
The ID card in Saudi Arabia signifies residency status and must also be stamped in employees’ passports. The figure reported
is for a single entry whereas multiple entry would cost USD 311
39
9
7
Ports and Customs
When importing from outside of the GCC jurisdiction, all countries levy a customs duty of 5% for general
items. Import duties are not imposed on companies operating in a FTZ or on trade between GCC
jurisdictions under the Greater Arab Free Trade Agreement. However, mainland companies (not located
in FTZs) in the industrial and manufacturing sector can be exempt from paying import duties for raw
materials and equipment subject to approval from relevant regulatory authorities. This is the case for
companies operating in BIIP, KAEC and to a limited extent in SMSIA 40.
Customs duty applies on products that are manufactured within FTZs but sold in the mainland - For
example, goods manufactured by a company within JAFZA will attract an import duty if they are sold
within UAE. Conversely, this becomes a key advantage for manufacturers located outside FTZs (like
BIIP, KAEC and SMSIA), as they can get an exemption (subject to relevant authority approval) from
import duty on raw materials and specific equipment, as well as on finished products sold within the
mainland.
Illustrated below are the import duties that would apply to products manufactured within FTZs and
Investment Parks / Cities and sold within the mainland.
Figure 11: Custom Duties
Custom Duties (USD)
Custom Duties
Customs Duty
when
importing from
FTZs and
Investment
Parks / Cities
(general items)
BIIP
JAFZA
SAIF
RAKFTZ
SoharFTZ
KAEC
SMSIA
KWTFTZ
0%
5%
5%
5%
5%
0%
0%
5%
Source: KPMG Research & Analysis
Sea Port charges are indicative costs of handling, clearing, documentation and last mile transportation
charges for standard items. The table below represents the sea port charges applicable in GCC
countries, indicating that Bahrain offers the best rates.
Figure 12: Sea Port Costs41
Sea Port Charges (USD)
Charge Type
Terminal
Handling
Charges42
Clearing,
Documentation
&
Transportation
Charges43
Ras Al
Abu
Jeddah Dammam Kuwait Oman
Khaimah Dhabi
Bahrain
Qatar
Dubai
Sharjah
Units
90
160
200
180
200
200
240
270
90
100
per 20’
container
290
390
310
310
350
310
330
400
420
320
per 20’
container
Source: Port Authorities, Freight forwarders, Shipping lines and KPMG Research & Analysis
40
Exemption on import duties do not apply in Qatar; however transit importation is permissible whereby imported
material/equipment is exempt from import duties if they are deposited in a free trade zone or exported within six months
41
All figures have been rounded off to the nearest 10
42
All reported figures factor in multiple ports across each country
43
Transportation charges are calculated between the port and city limits. Clearing and documentation requirements vary at
different ports
10
Port Storage Charges are the costs associated with storing containers at cargo terminals. The typical
pricing structure for storage at ports include a limited period of ‘free time’ during which no charges are
levied. After the free time allowance, a daily rate for storage is levied, which increases based on the
number of days that containers remain at the terminal. Typically, importers and exporters limit storage
at ports to the free time period to keep their logistics costs low.
Illustrated below are the storage charges applicable to relevant sea ports for each of the benchmarked
FTZs and Investment Parks / Cities:
Figure 13: Port Storage Costs
Port Storage Charges (USD)
Port
Free Time
Allowance
BIIP
JAFZA
SAIF
RAKFTZ
Abu
Dhabi
Dammam
SMSIA
KWTFTZ
Khalifa
Bin
Salman
Port
Jebel Ali
Port
Port
Khalid
Saqr Port
King
Khalifa
Dammam
Sohar Port Abdullah
Port
Port
Port
Port of
Doha
Shuwaikh
Port
11 days
10 days
10 days
15 days
14 days
10 days
3 days
4 (Day 12
to 21)
21.8 (Day 20.4 (Day
11 to 15) 11 to 15)
19.4
(Day 15
to 20)
5.3 (Day
Port Storage 22 to 31)
4.1 (Day
Costs (per
16
day per 20’
8 (Day 32
onwards)
container)
to 41) 40.8 (Day 38.1 (Day
36.45
16
16
(Day 21
13.3 (Day onwards) onwards)
onwards)
42
onwards)
SoharFTZ
10 days
KAEC
7 days
3.3 (Day
11 to 20)
4.6 (Day 4.0 (Day 8
21 to 30) onwards)
6.5 (Day
31
onwards)
20 days
10 (Day
11 to 20)
16.5 (Day
4 to 6)
21.6 (Day
16.6 (Day
8
21 to 30)
onwards)
33 (Day 7
23.2 (Day onwards)
31
onwards)
Source: Port Authorities, KPMG Research and Analysis
11
8
Appendix
The following table provides an overview of the different incentives offered by the benchmarked FTZs
and Investment Parks / Cities.
Figure 14: Incentives Offered by FTZs and Investment Parks / Cities
Incentives
Incentive Type
BIIP
JAFZA
SAIF
RAKFTZ
SoharFTZ
KAEC
SMSIA
KWTFTZ
Exemption from
tax44








100% foreign
ownership






Subject to
approval

100%
repatriation of
capital/profits








Duty Free
Imports of raw
materials and
equipment45
Subject to
approval







Duty Free
access to GCC
markets








Source: FTZ Authorities, Investment Park/City Authorities and KPMG Research & Analysis
44
Tax exemptions are only guaranteed at BIIP and SoharFTZ for a period of 10 years and 25 years respectively
45
Exemption on import duties do not apply in Qatar; however, transit importation is permissible whereby imported
material/equipment is exempt from import duties if they are deposited in a free trade zone or exported within six months
12
Renting Commercial Office Space
Bahrain
Rental rates for commercial office space have fallen by an estimated 7% between 2013 and 2014. This
is due to the current competitive market whereby supply of prime office space exceeds demand. At
these rates, Bahrain is the most competitive commercial office space market when compared with Dubai
and Qatar.
The table below reflects the rentals for the Net Internal Area (NIA) 46. Typically, an additional 15% of the
rent would be charged as maintenance charges for the common areas which include staircases and
lobbies.
Figure 16: Prime commercial asking rental rates in Bahrain
Asking rental rates in Bahrain by office locations (USD per sqm per month)47
Location
2012
2013
2014
Bahrain World Trade Center
24
24
21
Bahrain Financial Harbor
24
24
24
Seef Area
22
21
19
Diplomatic Area / Manama
24
22
19
Source:
Primary Research, KPMG analysis
Both Bahrain World Trade Center and Bahrain Financial Harbor offer furnished and non-furnished office
space options.
Figure 17: Typical prime commercial asking rents
Bahrain asking rents in 2014 (USD per month)
Location
50 sqm
100 sqm
200 sqm
300 sqm
Bahrain World Trade Center
1,060
2,120
4,240
6,370
Bahrain Financial Harbor
1,200
2,400
4,800
7,200
960
1,910
3,820
5,730
1,000
2,000
4,000
6,010
Seef Area
Diplomatic/Manama
Source:
Primary Research, KPMG analysis
46
Net Internal Area refers to the total floor area excluding area taken up by lobbies, stairs and escalators, lifts and other
maintenance areas.
47
All figures have been rounded to the nearest integer
13
Dubai
Rental rates for commercial properties in Dubai remain high when compared to Bahrain. On average,
prime office space rental rates in Dubai are 193% higher than Bahrain.
Figure 18: Prime commercial asking rental rates in Dubai
Asking rental rates in Dubai by major office locations (USD per sqm per month)
Location
48
2012
2013
2014
DIFC – Gate Village
56
56
56
DIFC – Gate Precinct
62
62
62
DIFC – Gate Building
67
67
67
Source:
Primary Research, KPMG analysis
DIFC further charges USD 14.7 per square meter per month as service and utility charges.
Typical rents for occupying at the DIFC are as below:
Figure 19: Typical prime commercial asking rents
Dubai asking rents in 2014 (USD per month)
Location
50 sqm
100 sqm
200 sqm
300 sqm
DIFC – Gate Village
2,810
5,620
11,230
16,850
DIFC – Gate Precinct
3,090
6,180
12,360
18,540
DIFC – Gate Building
3,360
6,720
13,430
20,150
Source:
48
Primary Research, KPMG analysis
All figures have been rounded to the nearest integer
14
Qatar
Rental rates in the Diplomatic District / West Bay have increased due to the development of the area
as having the greatest amount of A-Grade office space in Qatar. Rental rates at QFC reduced as more
prime office supply became available in Qatar. On average, prime office space rental rates in Qatar are
192% higher than Bahrain.
Figure 20: Prime commercial asking rental rates in Qatar
Asking rental rates in Qatar by major office locations (USD per sqm per month) 49
Location
2012
2013
2014
Qatar Financial Center (QFC)
69
69
66
Diplomatic District / West Bay
(average)
54
55
57
Source:
Primary Research, Asteco Qatar Report Q1 2014, KPMG analysis
In addition to the base rent in Diplomatic District/West Bay, 15% of the monthly rate is charged as
service charge. QFC charges 10% of the asking rental rate as service charge.
Figure 21: Typical prime commercial asking rents
Qatar asking rents in 2014 (USD per month)
Location
50 sqm
100 sqm
200 sqm
300 sqm
Qatar Financial Center
3,300
6,610
13,220
19,830
Diplomatic District / West Bay
(average)
2,840
5,690
11,370
17,060
Source:
49
Primary Research, Asteco Qatar Report Q1 2014, KPMG analysis
All figures have been rounded to the nearest integer
15
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