World's 10 cheapest cities to live in

Asian and Middle Eastern cities dominate the lower-end rankings in latest Worldwide Cost of Living Survey conducted by the prestigious Economic Intelligence Unit (EIU)

10..Oman’s capital Muscat is the world's tenth cheapest city to live in, according to the latest Worldwide Cost of Living Survey (WCOL) conducted by the prestigious Economic Intelligence Unit. The survey allows for city to city comparisons, but for the purpose of this report all cities are compared to a base city of New York, which has an index set at 100.

With a score of 63 on the index, Muscat ranks at No.10.

09..With a score of 61 on the index, Bangladesh’s capital Dhaka ranks at No.9. The bi-annual (twice yearly) survey compares more than 400 individual prices across 160 products and services. They include food, drink, clothing, household supplies and personal care items, home rents, transport, utility bills, private schools, domestic help and recreational costs.

Algiers (in Algeria) ranks at No.8 on the list, with an index score of 59. The cheapest cities in the ranking are dominated by Asian and Middle Eastern cities. The latter of these is due, in part, to the use of price controls and the pegging of currencies to the US dollar.

At No.7 is Kathmandu, with a score of 58.

Panama City is tied with Kathmandu with a score of 58 on the index.

The Red Sea port city of Jeddah (Saudi Arabia) is the fifth cheapest city in the world to live in. It has a score of 57, as compared to the base city of New York, which has an index set at 100.

Three of the four cheapest locations hail from the Indian subcontinent, highlighting why India has been such a target of labour outsourcing, relocation and FDI over the last decade. New Delhi is the fourth cheapest city in the world, with 56 points on the index.

Tehran (Iran) is ranked at No.3, with 54 points.

Here’s one result that could raise a few eyebrows and generate some heated comments (you can post your opinions below). India’s financial capital Mumbai is rated the world’s second cheapest city in the EIU study. It has a score of 52 on the index.

Not surprisingly, Mumbai also saw the highest drop in office rental prices.

Cheap labour and land costs making India and Pakistan incredibly attractive to those bargain hungry visitors or investors willing to brave some of the security risks that accompany such low prices, especially in Pakistan.

Karachi is the cheapest city to live in the world based on EIU’s parameters. It has a score of 46, as compared to the base city of New York, which has an index set at 100.