Too much Gulf rental levels are in constant flux. Oversupply and softening or static rentals in prime space have been reported in Abu Dhabi, Sharjah, Al Khobar and Jeddah. Undersupply of good quality space in Kuwait has resulted in rents rising, although demand remains static. Muscat is also suffering from poor supply of good quality space while new office buildings come up, although rental levels also remain static there. In general, the unit cost of utilities remains not only very favourable in the GCC, with most countries providing such services literally 'at cost', but also quite consistent from one state to another.
Some countries do, however, subsidise the supply of electricity or water as an investment incentive.
For example, qualified industrial users in Saudi Arabia can obtain a preferential electricity unit rate, as can investors in Kuwait's Shuaiba Industrial Area or the Ajman Free Zone. Water, as a limited resource, is typically discounted throughout the region only to small volume users, with large off-takers being effectively penalised according to an escalating scale of charges. International telephone rates are the most attractive in the UAE, followed by Bahrain, while, in common with most other GCC states, the availability of lines and the latest equipment and services is also excellent. Only in burgeoning Jeddah and other parts of the vast Kingdom of Saudi Arabia do companies encounter problems obtaining new or additional lines and this can be a significant stumbling block for start-up businesses. High demands The costs of purchasing office furniture and furnishings, for example, are more directly related to the volume of demand and turnover in specific locations, the margins retailers and suppliers are prepared to accept, and the level of customs duty, if any, on specific goods.