Comparison of prices - are things really that cheap in Saudi

[Robone]

What started this investigation, is we bought a Bose sound system for our ipod today and because I am off to the USA in July and South Africa in April, I thought I would just check the prices and see whether I got a good deal.

Saudi SR 1390 (Jarir)
USA $299 = SR 1121 (Amazon)
South Africa R2500 = plus/minus SR 1470

Now, is it just a mind thing that I always think you can buy things cheaper here. Looks like it. Okay, for SR 100, I am not going to kick up a big fuss, but if I have to pay VAT and import duty on it when I go back to SA, then thats when I will be upset.

Anyone else compared prices, on other items, recently

[Stewart]

Personal opinion: I have managed to get my head to believe the following. Here, I am earning at least the same number of Riyals as I was Rands. Then of course there's no tax. So, what it boils down to is this. Your Bose system costs Riyals1400. Now, if it was SA Rand 1400, it would be proportionate. But it isn't. You're paying Rands2500, which is disproportionate with what you'd earn in SA. Let's say you earned Rand 10000.00 per month at home, and you earn Riyal10000.00 per month here. In SA, you'd spend 25% of your monthly salary on the Bose. Here, you spend 14% of your salary.

That make you feel better?

[Timmeah!]

Have to agree with your logic & reasoning, which I would apply generally to the cost of living here. A passion of mine is music, & I have picked up a pleasantly surprising selection of cd's & dvd's from Megastar, Jarir & Carrefours Granada in Riyadh. The cd's in particular have been prived consistently at SAR55 each (with the odd exception), no matter whether old or new releases. So, apart from being less than ZAR100, the actual cost is effectively much lower, & a pleasure to have the pricing consistency c/w SA. Dvd's seem to vary in price depending on the movie or artist, as well as varying from one outlet to another. The buying patterns of the outlets are neither obvious nor consistent. My attempts at ordering non-stock items has failed dismally so far. Surprised at the continued popularity & availability of audio music casettes & VHS video movies. Jarir Olaya have a good range of VHS movies on sale for SAR15 each, from which I've picked up several for my daughters back home.

[Robone]

Stewart...Well I suppose it depends on what you were earning in SA compared to Saudi. In my case I was getting out 30% more in South Africa if you say a Rand equals a SR. So maybe I got the short end of the stick

Salary Saudi : SR 10000 - Cost is SR 1390 which is 14% of Salary

Salary SA: R13000 - Cost is 11% of Salary

But the logic is flawed.

It is now an international market and the prices should be the same anywhere in the world. The prices here and in SA should be the same as prices in the USA.

I have started looking at costs for cameras. Same thing happening in this market.

Okay, cars are a different story. There South Africans are being ripped off big time

Now lets take CD's.

If you download a CD in USA through Itunes, it costs about R6 / track
In South Africa through Musica, it costs R10 / track
In Russia through Allofmp3, it costs R1 / track
And buy a CD in Saudi it costs R6 / track

Why the discrepancy. Because costs are tailored to suit the market

A report from http://www.guardian.co.uk/frontpage/story/0,,1723218,00.html called "US opens inquiry into pricing of music downloads"

"The European commission is already undertaking an inquiry into the cost of iTunes tracks, following complaints about the price difference between the UK, mainland Europe and the US."

Someone should do a survey of music download prices. Could be the new Big Mac measure of an economy

[Stewart]

Now that I have iTunes sorted out, I'm going to go, credit card in hand, to the market and see what I can get. Music taste firmly stuck in 70's/80's rock (Zeppelin, Floyd, Rainbow, etc, along with Steve Vai and Joe Satriani), so it would be interesting to see what I can get, and for what price. I did find these CD's expensive in S Africa, maybe because they're not run-of-the-mill. So, let's see, and compare.

[Robone]

Go to www.allofmp3.com and you won't go anywhere else

[Tekkies]

Just want to share this.
1.   I just bought a Kawasaki ZX12R motorcycle in Bahrain for BD4300 which is about SAR43000 (R72300). The Kawasaki Agent deliverd the bike for me in Al Khobar and the custom duty was only SAR200. Information that I have already recieved from South Africa is that if the bike was for my own personal use and it was registerd to my name for at least one year in Saudi, my import duty will only be 15% of purchace price. This will be about R10000. Add all up the total will be about R82000.
This bike in South Africa new is priced at R110000. What a rip off

2.   I just got a catalog with prices for HIFi systems in South Africa (2005). The system Im lookaing at  will cost me about SAR22000  (R37000). This include Yamaha AV amp, NAD DVD player and complete set of Castle speakers. Comparing this with the catalog prices in South Africa, this system will set me back not less than R70000. What a joke !!!! This will also go as appliances for personal use in Saudi and no custom duty is payable.

[Robone]

Just for interest, was the "Castle" wishful thinking

Okay now price the same items in the USA. Think about it, most items come from somewhere in the far east (not Springs or Brakpan) and therefore it should cost the same here as it does in the USA. So why doesn't it.

I have a theory.
In a shopping centre you have to have an anchor tenant. This anchor pays half the amount he should pay, and the anchor is subsidised by the smaller tenants.
The USA is the Anchor and the rest of the world are the smaller tenants. So, we are subsidising the USA.

I am looking at buying a camera the Nikon D50. The case plus lense costs SR3100 at a local shop in Jeddah.
Looking up the price on internet in the USA it costs SR2300 for exactly the same item
Haven't a clue as to what it costs in good old Sefrica

Hey tekkies, notice the price of the items that I look at compared to yours

[grahamjw]

Hi Guys

To go along with what has been discussed I have just placed an order for some golf clubs from the States online. The price is SR820.00 from the States, SR1000.00 from Saudi and SR1100.00 (discounted through a friend) from SA. Unfortunately those poor guys in SA are being ripped off with duties etc. I paid SR1875.00 for a set of good irons. Quotes in Saudi - SR2300.00 and in SA - SR3300.00. My son bought Nike soccer boots here for SR100.00 (ok they were on a clearance special) and was offered SR600.00 in SA and also basketball shoes here are about half the price of SA.

[jelo]

Howzit guys (and girls?),
I'm a newby, so bear with me if this isn't part of the right thread....
I'm moving to Saudi (Khobar) in 2 months on contract, and I'm currently in the UAE.

Some questions:
- what does single accomodation cost? Compare compounds and small villas, furnished if possible?
- car prices? I'm looking for an old stuffed 4x4 for the desert. Cheaper to buy in Dubai?
- taxi and bus services prices? How well connected is Khobar?

Thanks, dudes.

[Stewart]

Howzit Jelo

Welcome to Saudi! I think Alsgal will be able to answer your questions more fully, as she lives in Khobar. Here in Riyadh may be a little different.

I think Dubai is more expensive generally, so may be a good idea to buy the 4x4 here. Buses and taxis......forget buses. Just not an option. Taxis are cheap and plentiful.

Accomodation, well, that's where Alsgal comes in. Here in Riyadh compounds you can pay anything from SR40K to SR65K p.a. in a compound. Not sure what it's like outside of compounds, but if you're married with kids this really isn't a viable option unless they're used to never moving out of the house.

Coming from Dubai, you may be in for a bit of a culture shock, but I'll fill you in on that aspect in a couple of days (yes, Robone, I know I keep saying that, but I will get there, I promise!)

[jelo]

Thanks, Stewie. SR40k isn't much: Dubai is around SR120 minimum for a small villa these days.

I'm here on my own, so the smaller the better: furnished hotel apartments are about the best for me. Very much a case of doing any partying where it's safe from the Isl4mic gestapo and then sneaking home in a taxi.....

Is the UAE driving license accepted, or will I have to do the whole Saudi rigmarole anyway? It's bad enough in the UAE if you don't have a good representative.

I have an idea about the culture shock: I work in Abu Dhabi,(which isn't Riyadh, I know) but which is much more conservative than Dubai. Ramadan means Ramadan in AD. I'm also not the sort to get out of hand or do anything extroverted by mistake, so I reckon as long as I'm forwarned I should be OK. Looking forward to your analysis.

[Stewart]

Howzit Jelo

Have got this weekend off, so will be putting the package together on Friday. But to clarify a couple of things in your last post:

The 40K I quoted would be a fully furnished 2 bed apartment here in my compound (which is considered to be one of the best in Riyadh). The villas, however, are quite a bit more. My 3-bedroom one is SR145K per year, but that's all-in: electricity, water, local phone calls and, of course, use of all the amenities. There are cheaper compounds, but the old saying holds: you get what you pay for.

Not sure about the driver's license. I'm going to Qatar next week, driving there, and nobody's said that my license is no good. But, if you intend staying here for extended period, then it may be worth the schlepp to get a local license. These okes here luuuurve their documents.....

Partying - be very, very careful here. Booze is NOT allowed. Do not transport it, but it or, ideally, drink it. Anywhere. Will tell more in the article, but it's really not worth blowing your contract. Rather go to Qatar, and if you're going to Khobar, then Bahrain is an easy 40 minute drive.....

Culture shock. Ja. In Abu Dhabi, does everything close for every prayer time? Do women have to wear abayas in public? Can women drive? These seem like little things, but become an important part of your lifestyle here. I'll elaborate on this quite extensively this weekend.

Anyway, I'm hoping to have the article done this weekend, will post it maybe Saturday early. Stay tuned!

[jelo]

OK, alcohol issue noted!
Does everything close at prayer time? Unlike Dubai, yes.
Do woman have to wear abayas in public? No, it's voluntary.
Can women drive? Yes, well, if you call it driving....

The 40k sounds quite fair for a 2-bed furnished apartment. I'll be getting around that from my employer.