INA–Follow up

The latest mid-year ranking issued by the international website Numbeo, and reviewed by the Iraqi News Agency (INA), shows that the Lebanese capital, Beirut, maintains its low ranking among the world's worst cities in the Quality of Life Index, despite a slight relative improvement in the Cost of Living Index following the stabilization of the Lebanese pound's exchange rate after years of financial collapse.

The report indicated that the return of inflationary pressures and a decline in purchasing power prevented this stability from being reflected in the daily living standards of residents.

Beirut's Ranking Regionally and Globally

According to the periodic field surveys conducted by the international website, the Lebanese capital's ranking is as follows:

Global Ranking: Beirut ranked 287th globally out of 305 cities included in the survey.

Arab Ranking: Beirut came in second to last among Arab cities in the Quality of Life Index, ahead only of the Egyptian capital, Cairo, which ranked last among Arab cities.

Cost of Living Index: Beirut ranked third among Arab cities as the most expensive, after Dubai and Abu Dhabi in the UAE.

Regional and International Comparison

Arab Lead: Muscat, Oman, achieved the highest ranking among Arab cities, placing 75th globally (with a score of 180.3 points). Doha, Qatar, followed in 128th place globally (169.2 points), and Abu Dhabi ranked third regionally (169 points).

Global Leadership: Dutch cities maintained their international leadership, with The Hague ranking as the best city globally in the Quality of Life Index, followed by Eindhoven in second place and Rotterdam in third.

Least Expensive Cities: Alexandria, Egypt, stood out as the least expensive city in the Arab world, followed by Tehran, Iran, and Cairo, Egypt.

Global Ranking Criteria and Mechanism

Numbeo's global ranking is based on eight key indicators measured to arrive at the final results. These indicators are divided into two categories:

Indicators requiring high scores to ensure quality of life: These include purchasing power, safety, healthcare, and climate.

Indicators requiring low scores: These include cost of living, housing cost-to-income ratio, traffic and commuting time, and pollution levels.

Detailed Figures for the Lebanese Capital

Beirut scored 54.6 points in the "Cost of Living" indicator compared to New York City (out of a reference point of 100). The detailed indicators are distributed as follows:

Rental Price Index: 20.8 points (79.2% cheaper than New York).

Goods Price Index: 47.2 points (52.8% cheaper than New York).

Restaurant Price Index: 53.3 points (46.7% cheaper than New York).

Purchasing Power Index: Only 32.00 points (68.0% lower than the purchasing power index in New York).

Historical Developments and Emerging Pressures

Historical data shows that prices in Beirut rose sharply following the financial crisis in the fall of 2019, peaking at the end of 2022, before declining somewhat starting in mid-2023 thanks to the stabilization of the exchange rate at 90,000 Lebanese pounds per dollar.

Prices have since risen again due to renewed inflationary momentum stemming from the local and regional security and military situation and its direct impact on oil and energy prices and supply chains. The cost of living index in Lebanon has risen by 20% by the end of May of this year.