By KHALIL HANWARE | ARAB NEWS

JEDDAH: Jeddah has been ranked as one of the top 10 cheapest cities in the world, according to the Worldwide Cost of Living (2011) survey conducted by the Economist Intelligence Unit (EIU). Karachi was the cheapest, while Tokyo was the most expensive. Jeddah came 128th.

Cities in the Middle East and North Africa make up the bulk of the cheapest locations, said the report.

According to the survey, Jeddah is, however, comparatively expensive to cities such as Tehran (130), Tunis (132), New Delhi (129) and Mumbai (131). The Sri Lankan capital Colombo, ranked 114, is among the top 20 cheapest locations.

Commenting on the survey results, Jarmo T. Kotilaine, chief economist at the National Commercial Bank, said: “The EIU’s findings about Jeddah highlight the relative cost competitiveness of the Middle East in general as compared to more established business hubs in the West and in Asia. The low cost constitutes as important potential comparative advantages for the region as it seeks to attract more foreign direct investment. Jeddah’s competitiveness is further boosted by its strategic location and access to a number of foreign markets through its international port and airport.” HERE