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Cost of Doing

Business in
Bahrain
Financial Services
November 2014

Contents
1

Executive Summary

Licensing & Registration Costs

Renting Commercial Office Space

3.1

Bahrain

3.2

Dubai

3.3

Qatar

Occupancy costs

Manpower costs

Cost of Utilities

10

Communication Costs

11

7.1

Telephone Services

11

7.2

Internet Services

12

Corporate Taxes

13

Renting Residences

14

10

Education Costs

15

11

Total Costs Summary

16

Appendix

17

Executive Summary

This report looks at the typical costs associated with operating a financial services firm in Bahrain,
Dubai and Qatar. The report analyses the cost of licensing and registration, commercial rental rates,
manpower costs, communication and utility expenses, as well as corporate taxes across these
jurisdictions.
In addition to analyzing the costs of operating a financial services firm in these jurisdictions, the study
also presents an overview of the average cost of living, focusing on the cost of education and the cost
of renting residential properties. Overall, the total cost of doing business in Dubai and Qatar is
1
significantly higher (35% and 46% respectively) than that of Bahrain.
Rental rates of commercial properties in Bahrain remain considerably lower than Qatar and Dubai,
where office rents are more than two times the rates in Bahrain. Commercial rental rates for Dubai
2
3
and Qatar are assessed for free zones only (DIFC and QFC respectively) as financial services firms
are restricted to these locations (in the case of Dubai) or are predominantly located in these free
zones (as in the case of Qatar). Bahrain, however, has no such restrictions and an investment
company would be permitted to setup operations in any commercial office location.
Although communication and utility expenses vary upon consumption, Dubai has the highest average
cost for utilities (water and electricity) and telecommunication.
From a cost of living perspective, residential rents in addition to the cost of schooling are higher in
Dubai and Qatar, making Bahrain the most affordable country to live in. On average, the rental rate of
2 bedroom apartments and 3 bedroom villas in Dubai and Qatar are twice that of Bahrain. Education
costs in Bahrain are lower than Dubai and Qatar which exceed the education cost of Bahrain by 80%
and 103% respectively.
Bahrain also has the lowest manpower costs when compared with Dubai and Qatar, with the average
salary in Bahrain for the year 2014 being 6-15% less than Dubai and Qatar, respectively.

Calculated based on an office of 300 sqm with 7 employees

DIFC : The Dubai International Financial Centre is a financial free zone located in Dubai which operates as an independent
jurisdiction within the UAE

QFC: The Qatar Financial Centre is a financial centre located in Doha which operates as an independent jurisdiction within
Qatar

The following tables outline the overall cost of setting up and operating a business, in addition to the
living costs across Bahrain, Qatar and Dubai:
Figure 1: Comparison of various cost heads

Average Annual Cost of Operations (USD)


Cost Head
Commercial Rent
Manpower

Telephone Services
Internet Services

Utility (electricity & water)


Total Cost
Source:

Bahrain

Qatar

Dubai

75,930

221,340

222,160

69,810

86,510

77,170

1,670

2,260

3,510

3,500

5,270

3,750

310

280

660

149,790

313,720

304,240

KPMG analysis

Figure 2: Indicative Costs of Living

Average Annual Cost of Living (USD)


Cost Head
Residential Units

10

Bahrain

Qatar

Dubai

2 Bedroom Apartment

17,280

33,840

37,440

3 Bedroom Villa

23,040

47,280

63,840

6,710

13,650

12,080

Education
Source:

KPMG analysis

All figures have been rounded off to the nearest 10

Reflects the average annual cost of renting 300sqm of commercial office space

Reflects the manpower costs of 1 employee, and includes occupancy costs

Reflects the telephone charges of 1 employee and includes monthly rental charges

Reflects the corporate rates for 8Mbps packages

All figures have been rounded off to the nearest 10

10

Reflects the annual cost of renting a 2 bedroom apartment or a 3 bedroom villa

Licensing & Registration Costs

Financial services institutions operating in banking and investment activities are regulated by the
Central Bank of Bahrain (CBB) in Bahrain, the Dubai Financial Services Authority (DFSA) in the DIFC,
11
and the Qatar Financial Centre Regulator Authority (QFCRA) in QFC. In particular, this study looks
12
at financial institutions that are permitted in dealing with investments (as principle) and dealing with
13
investments (as agent) .
Licensing and registration costs are presented in the form of non-refundable application fees, in
14
addition to annual fees charged to the licensees, depending on the type of license held, should the
application be successful.
Figure 3: Licensing and Registration Fees of Financial Services Institutions
Annual Fees & Application Fees (USD)
Regulator
CBB

15

DFSA
QFC
Source:

Category

Application Fees

Annual Fees

Dealing with Investments (as principle)

270

14,910 (floor) 63,660 (cap)

Dealing with Investments (as agent)

270

14,910 (floor) 63,660 (cap)

Dealing with Investments (as principle)

40,000

40,000

Dealing with Investments (as agent)

25,000

25,000

Dealing with Investments (as principle)

25,000

25,000

Dealing with Investments (as agent)

10,000

10,000

Central Bank of Bahrain Rulebook: A Guide to the CBBs Licensing Process, The DFSA Rulebook: Fees Module, Qatar Financial Centre Regulatory
Authority: A Guide to the Application Process

11

Qatar has a dual regulatory system whereby the QFCRA as well as the Qatar Central Bank (QCB) regulate entities under
their jurisdictions

12

Dealing in investments as principle refers to the buying, selling, subscribing for or underwriting of financial instruments on
own account, including the underwriting of public offerings and private placement of third parties

13

Dealing in investments as agent refers to the buying, selling, subscribing for or underwriting of financial instruments on behalf
of a client

14

Annual fees payable to the CBB are variable, and are based on a percentage of the institutions adjusted operating cost base
(subject to a minimum and maximum amount). Furthermore, the DFSA charges an annual fee of 0.1% for each USD 1 million
in turnover

15

The application and annual fees charged by the CBB are rounded off to the nearest 10

Renting Commercial Office Space

3.1

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.
16

The table below reflects the rentals for the Net Internal Area (NIA) . Typically, an additional 15% of
the rent would be charged as maintenance charges for the common areas which include staircases
and lobbies.
Figure 4: Prime commercial asking rental rates in Bahrain
Asking rental rates in Bahrain by office locations (USD per sqm per month)
Location

17

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 5: 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

16

Net Internal Area refers to the total floor area excluding area taken up by lobbies, stairs and escalators, lifts and other
maintenance areas.

17

All figures have been rounded to the nearest integer

3.2

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 6: Prime commercial asking rental rates in Dubai
Asking rental rates in Dubai by major office locations (USD per sqm per month)
Location

18

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 7: 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:

18

Primary Research, KPMG analysis

All figures have been rounded to the nearest integer

3.3

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 8: Prime commercial asking rental rates in Qatar


Asking rental rates in Qatar by major office locations (USD per sqm per month)
Location

19

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 9: 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:

19

Primary Research, Asteco Qatar Report Q1 2014, KPMG analysis

All figures have been rounded to the nearest integer

Occupancy costs

Occupancy costs per employee are calculated based on the average workstation area per employee
20
and the rental rate of the location .
As illustrated below, the occupancy cost per workstation in Bahrain continues to be significantly lower
than QFC in Qatar and the DIFC in Dubai. On an average, the annual occupancy in QFC and DIFC
are around three times that of Bahrain.
Figure 10: Average annual occupancy costs per workstation

21

Total occupancy costs (USD per workstation per annum)


Country

2012

2013

2014

Bahrain

4,780

4,780

4,370

QFC

13,662

13,662

13,090

DIFC Village Gate

13,680

14,040

12,750

DIFC Precinct Gate

14,580

14,940

13,760

DIFC Building Gate

15,480

15,840

14,730

Source:

DTZ Occupier Perspective Global Occupancy Costs Offices 2013 & 2012, KPMG analysis

20

DTZ Occupier Perspective Global Occupancy Costs Offices 2013 & 2012; average workstation area per employee adopted
as 15.0 sqm gross area (i.e. including staircase, lobbies and other common areas). Bahrains rate for utilities and service
charge of commercial properties is 15% of the rent per sqm, while the DIFCs utilities and maintenance charge is USD 15 per
sqm, and the QFCs rate for utilities and service charge is 10% of the rent per sqm

21

Please refer to the Appendix for a detailed explanation of the calculations and methodology adopted

Manpower costs

When comparing the average salary earned working in the financial sector, Bahrain continues to have
the lowest manpower cost in comparison to Dubai and Qatar. The salaries quoted below include the
22
basic and HRA components, but does not include the other expatriate benefits.
Figure 11: Average finance sector salaries
Average Annual Finance Sector Salary

23

(2014)

Country

Local Currency

USD

Bahrain

BHD 22,070

58,540

Dubai

AED 229,460

62,470

Qatar

QAR 251,480

69,070

Source:

Hay Group Compensation and Benefits Report 2014, Ministry of Development Planning & Statistics Qatar, KPMG analysis

The tables below outline the overall annual costs of hiring in Bahrain, Dubai and Qatar. Each table
provides past and future trends of the wages, housing rent allowance, and additional benefits of
expatriate employees working in the financial sector.
Figure 12: Overall costs of hiring in Bahrain
Average Annual Cost in the Financial Sector for Bahrain (USD)
Overall costs

2012

2013

2014

2015 (E)

2016 (E)

2017 (E)

Salary

35,240

37,070

38,360

39,890

41,490

43,150

HRA component

19,220

19,500

20,180

20,980

21,820

22,700

Expatriate Benefits

10,730

10,890

11,270

11,720

12,190

12,670

Total Cost

65,190

67,460

69,810

72,590

75,500

78,520

Source:

Hay Group Compensation and Benefits Report 2014, KPMG analysis

Figure 13: Overall costs of hiring in Dubai


Average Annual Cost in the Financial Sector for Dubai (USD)
Overall costs

2012

2013

2014

2015 (E)

2016 (E)

2017 (E)

Salary

34,570

36,260

38,080

40,250

42,540

44,970

HRA component

22,890

23,230

24,390

25,780

27,250

28,810

Expatriate Benefits

13,800

14,000

14,700

15,540

16,430

17,370

Total Cost

71,260

73,490

77,170

81,570

86,220

91,150

Source:

Hay Group Compensation and Benefits Report 2014, KPMG analysis

22

HRA: Housing rental allowance is the allowance in the remuneration of an employee to meet rental expenses

23

Including only basic and HRA components, other expatriate benefits are not included

Figure 14: Overall costs of hiring in Qatar


Average Annual Cost in the Financial Sector for Qatar (USD)
Overall costs

2012

2013

2014

2015 (E)

2016 (E)

2017 (E)

Salary

38,410

40,520

42,810

45,120

47,560

50,130

HRA component

23,080

23,420

26,260

27,680

29,170

30,750

Expatriate Benefits

15,330

15,560

17,440

18,390

19,380

20,420

Total Cost

76,820

79,500

86,510

91,190

96,110

101,300

Source:

Ministry of Development Planning & Statistics Qatar, KPMG analysis

The following graph illustrates the trends in employment costs between 2012 and 2017. Based on
24
projected inflation and salary growth , the overall cost of manpower in Bahrain is expected to remain
substantially lower than that of Dubai and Qatar.

120,000
100,000
80,000
60,000

76,820
71,260
65,190

86,510

79,500
73,490
67,460

96,110

91,190

86,220

81,570
72,590

77,170
69,810

75,500

101,300
91,150
78,520

40,000
20,000
Bahrain

Dubai

Qatar

0
2012

24

2013

2014

2015 (E)

2016 (E)

2017 (E)

Forecasted salary growth is projected as 4% for Bahrain and 5% for Dubai and Qatar - Hay Group Compensation and
Benefits report 2014

Cost of Utilities

Electricity and water tariffs for commercial consumption differ in accordance to the total number of
units utilized. When compared, Dubai charges the highest commercial tariffs for the utilization of both
electricity and water.
Figure 15: Electricity & Water Tariffs
Electricity & Water Tariffs for Commercial Consumption (USD)
3

Country

Electricity Tariff per kWh

Bahrain

0.05

0.80

Dubai

0.10

2.10

Qatar

0.04

1.43

Source:

Water Tariff per M

www.mew.gov.bh, www.dewa.gov, www.qewc.gov

The charges quoted compare the commercial tariffs applied for utilizing more than 30,000 kilowatt3
hour (kWh) units of power against tariffs applied for utilizing less than 450 cubic meters (M ) of water.
The table below outlines indicative charges for electricity and water consumption for typical prime
commercial office sizes across Bahrain, Dubai, and Qatar:
Figure 16: Indicative Utility Charges
Electricity and Water Charges Scenarios (USD per month)
Location

Bahrain

Dubai

Qatar
Source:

50 sqm

100 sqm

200 sqm

300 sqm

Electricity

40

90

170

260

Water

10

10

30

50

Total

50

100

200

310

Electricity

90

180

360

540

Water

20

40

80

120

Total

110

220

440

660

Electricity

30

70

130

200

Water

10

30

50

80

Total

40

100

180

280

KPMG analysis

10

Communication Costs

7.1

Telephone Services

The cost of telephone services has been calculated based on the corporate rates offered from leading
telecommunication providers in Bahrain, Dubai and Qatar. The table below compares the call rates
applied for business telephone lines for both international calls and local calls:
Figure 17: Indicative Local vs. International Call Rates
Average Local vs. International Call Rates per Min (USD)
Country

Local Call Rate

25

International Call Rate

26

Bahrain

0.03

0.64

Dubai

0.03

0.52

Qatar

0.04

0.54

Source:

www.batelco.com, www.etisalat.ae, www.ooredoo.qa, KPMG analysis

Telephone charges are presented in the form of fixed rental fees and an estimate of call charges
27
(based on average employee utilization) . The costs quoted below compare the average charges for
28
business telephone packages .
Figure 18: Indicative Telephone Charges
Average Telephone Charges per Month (USD)
Country

Rental Charges

Call Charges

Total Charges

Bahrain

14

20

25

16

41

18

27

Dubai
Qatar
Source:

www.batelco.com, www.etisalat.ae, www.ooredoo.qa, KPMG analysis

Bahrain has the lowest average telephone charges per employee when compared to Dubai and
Qatar.

25

Local call rates are calculated based on fixed line to fixed line and fixed line to mobile call rates with a utilization of 60% and
40% respectively

26

International call rates are shown as the average of Peak Rates and Off-Peak Rates

27

Call charges are presented per employee with an estimated utilization of 300 minutes (local calls) and 10 minutes
(international calls) per month

28

Please note that the features and added benefits vary between the packages offered by each telecommunication company
across Bahrain, Dubai and Qatar

11

7.2

Internet Services

Similar to calculating the cost of telephone services, the cost of internet services are based on
corporate rates offered by telecommunication companies across Bahrain, Dubai and Qatar. The costs
29
quoted below are for an 8Mbps Business package , suitable for moderate internet utilization of a
commercial office of 25-50 employees, and excludes set-up fees and installation charges (one-off).
As outlined in the table below Qatar has the highest cost for internet services when compared to
Bahrain and Dubai.
Figure 19: Average Cost for Internet Services

30

Rental Charges for Internet Services (USD per month)


Country
Bahrain
Dubai

Rental Charges

31

290

32

310

Qatar
Source:

440
www.batelco.com, www.du.ae, www.ooredoo.qa, KPMG analysis

29

Please note that the features and added benefits vary between the packages offered by each telecommunication company
across Bahrain, Dubai and Qatar

30

The average cost for internet services has been rounded off to the nearest 10

31

Based on a 1 year contract

32

As above

12

Corporate Taxes

In Bahrain, there is no corporate tax for most companies. Qatar, Dubai and Bahrain apply different
quantum of taxes on corporations operating in these locations, ranging from social security
contributions, training levies, and municipality taxes.
The following tables outline the corporate taxes applied in Bahrain, Qatar and Dubai.
Figure 20: Corporate Taxes in Bahrain
Overview of Corporate Tax
Category

Description

Municipality Tax

10% on the rental of the commercial property

Social Security Contribution

12% of salaries for local employees, and 3% for expatriate employees

Training Levy
Source:

33

1% of the salaries for local employees, and 3% for expatriate employees

Bahrain Ministry of Finance

Figure 21: Corporate Taxes in Dubai


Overview of Corporate Tax
Category

Description

Municipality Tax

10% on the rental of the commercial property

Social Security Contribution

12.5% of salaries for local employees only

Corporate Tax

Income is taxed at 20% only on branches of foreign banks

Source:

United Arab Emirates Ministry of Finance

Figure 22: Corporate Taxes in Qatar


Overview of Corporate Tax
Category

Description

Social Security Contribution

10% of salaries for local employees only

Corporate Tax

Income is taxed at 10% for QFC entities that are wholly owned by Qatari or
GCC nationals

Withholding Tax

7% on interest paid to non-residents


5% on royalties paid to non-residents
7% on technical service fees paid to non-residents
7% tax is applied on commissions, brokerage fees, directors fees, and fees
from other services performed in Qatar

Source:

33

Qatar Ministry of Finance

Only applicable for companies with more than 50 employees that do not provide training to their employees

13

Renting Residences

A comparison of residential rents between Bahrain, Dubai and Qatar reveals substantially lower rents
for Bahrain. Residential rents in Bahrain stabilized in 2014 with the market witnessing an overall
increase of 0.8% in the year.
The tables below summarize the average monthly rentals across Bahrain, Dubai and Qatar.
Figure 23: Average monthly rents in Bahrain
Average Monthly Rents in Bahrain (USD)

34

Residential unit sizes

2012

2013

2014

Average Rent for 2 BD Apartment

1,500

1,430

1,440

Average Rent for 3 BD Villa

2,130

1,920

1,920

Source:

CBRE, Cluttons, KPMG analysis

Dubais real estate market continued to grow as expected throughout the year. In Dubai, the year-onyear growth for apartment and villa rents amounted to 31% and 11% respectively. The increased
rentals rates are largely due to the fact that Dubai won the 2020 expo bid.
Figure 24: Average monthly rents in Dubai
35

Average Monthly Rents in Dubai (USD)


Residential unit sizes

2012

2013

2014

Average Rent for 2 BD Apartment

1,990

2,390

3,120

Average Rent for 3 BD Villa

4,200

4,790

5,320

Source:

Asteco Dubai Report Q3 2014, KPMG analysis

The residential market in Qatar has witnessed increased rental levels for both villas and apartments.
Qatar experienced a demand-supply gap in the previous year which indicated increased rental rates
for 2014 however; the introduction of new supply has resulted in rental rate rises of a lower magnitude
than anticipated particularly in the case of apartments. On average, rental rates grew by 1% and 4%
between 2013 and 2014 for 2 bedroom apartments and 3 bedroom villas respectively.
Figure 25: Average monthly rents in Qatar
Average Monthly Rents in Qatar (USD)

36

Residential unit sizes

2012

2013

2014

Average Rent for 2 BD Apartment

2,510

2,780

2,820

Average Rent for 3 BD Villa

3,640

3,780

3,940

Source:

Asteco Qatar Report Q1 2014, KPMG analysis

34

All figures have been rounded to the nearest 10

35

As above

36

As above

14

10 Education Costs
An indicative analysis of the total cost of education across Bahrain, Dubai and Qatar are presented in
local currencies and USD in the table below. Overall, the annual cost of education in Bahrain is
substantially lower than in Dubai and Qatar, where education costs are higher by 80% and 103%
37
respectively.
Figure 26: Indicative Education Costs
Average Education Costs per Annum (2014)
Country

Local Currency

USD

Bahrain

BHD 2,530

6,710

Dubai

AED 44,350

12,080

Qatar

QAR 50,120

13,650

Source:

Primary research, KPMG analysis

The cost of education in Bahrain is significantly lower than Dubai and Qatar across all three grade
levels and curriculums. The cost of education for Pre-School levels, Primary levels, and Secondary
levels in Bahrain, Dubai and Qatar are compared in the table below:
Figure 27: Average Cost of Education
Annual Costs per Grade Level
Country

Bahrain

Dubai

Qatar

Source:

38

Curriculum

(USD)
Pre-School Level

Primary Level

Secondary Level

American

6,370

8,180

9,990

British

5,710

8,390

12,050

Indian

2,510

3,160

4,070

American

11,870

16,840

18,920

British

10,130

11,690

16,640

Indian

5,920

7,560

9,110

American

12,360

18,460

18,460

British

10,040

13,880

15,600

Indian

8,580

12,040

13,410

Primary Research, KPMG analysis

37

Average education costs have been rounded off to the nearest 10

38

The average education costs takes into account the fees of American, British, and Indian Curriculums for all three grade
levels.

15

11 Total Costs Summary


An indicative analysis of the total estimated employee related costs in Bahrain, Dubai and Qatar is
presented in the following table:
Figure 28: Overall costs of hiring
Estimated average employment costs in USD per month per employee
Occupancy cost

Average Wages

HRA Benefits

Expatriate
Benefits

Total

360

3,200

1,680

940

6,180

QFC

1,090

3,570

2,190

1,450

8,300

DIFC

1,150

3,170

2,030

1,230

7,580

Location
Bahrain

Source:

KPMG analysis

Although HRA benefits and expatriate benefits are lower in Bahrain in comparison to Qatar and
Dubai, expatriate employees continue to relocate to Bahrain due to its low living costs.
To better compare the costs of doing business in Bahrain, QFC and the DIFC, a scenario highlighting
the costs associated in operating an office with 10 employees is presented in Figure 29. Overall, the
cost of doing business in Bahrain remains lower than DIFC and QFC. When compared to Bahrain, the
manpower cost associated with operating an office of 7 employees is 23%-34% higher in Dubai and
Qatar respectively.
Figure 29: Office mix scenario
Office mix scenario costs (USD per month)
Occupancy cost

Average Wages

HRA Benefits

Expatriate
Benefits

Total

3,600

32,000

16,800

9,400

61,800

QFC

10,900

35,700

21,900

14,500

83,000

DIFC

11,500

31,700

20,300

12,300

75,800

Location
Bahrain

Source:

KPMG analysis

16

Appendix
1. Calculations for Cost per workstation

Methodology of calculation cost per workstation: 15 sqm space utilization standard per worker in the Middle East.
Rental rate of the building (in sqm per month).
Utilities and maintenance charges per sqm (10% of rent for QFC, and USD 15 for DIFC)
Calculation for annual cost per workstation= 15.0 sqm x (Rent + Service Charge) x 12
For example:
Annual Occupancy Cost per Workstation for QFC in 2014 =
15.0 sqm x [USD 66.0 per sqm x (1+10%)] x 12
=13,662
2. Workforce benefits

Expatriate benefits calculated in the subject report assume educations benefit for two children, and
additional for medical insurance and once a year home travel for a family of four. This does not
include any end-of-service benefits.

Citizen benefits vary from country to country and can include marriage benefits, benefits upon birth
of children etc. These considerations have not been included in this study.

17

2013 KPMG Fakhro, a Bahrain partnership registered with Ministry of Commerce and
Industry (MOIC), Kingdom of Bahrain and a member firm of the KPMG network of
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