Manama has been ranked the 91st most expensive city in the world to live in - and the fifth most expensive city in the Middle East.
The Bahrain capital’s cost of living compared to global averages has dropped since 2009, when it ranked as the 82nd most expensive place to live in Mercer’s Cost of Living Survey.
The Mercer survey ranks 207 cities across five continents and measures the comparative cost of more than 200 items in each location, including housing, transportation, food, clothing, household goods and entertainment.
Topping the list was Luanda, in Angola, followed by Hong Kong and Zurich, in Switzerland.
Meanwhile, Dubai rose from 67th last year to become the 33rd most expensive city in the world in 2015.
“Many currencies in the Middle East are pegged to the US dollar, which pushed the cities up in the ranking,” said the report.
In the Middle East, Beirut ranked at 44th is the only other city ranked among the top 50 most expensive cities in the world.
Amman, Jordan, was ranked 54th, followed by Riyadh, Saudi Arabia, at 71. Muscat, in Oman, and Kuwait City, Kuwait, were ranked joint 117th while Cairo, Egypt, was at 120th.
Jeddah remained the least expensive city in the region at 151 - despite rising 24 places since last year.