The cost of living in Dubai: A guide

Dubai remains an attractive destination for many international workers. A LinkedIn study² found that the United Arab Emirates (UAE) — and in particular the city of Dubai — ranked as the world’s most popular overseas destination for those looking for work.

But before moving to any country it is important to paint a picture of what your life will be like, and working out the cost of living should be the first port of call. What you will earn is important, but what those wages buy you is arguably more important: a £50,000-per-year salary buys far more in Hanoi than it does in London. For many people, Dubai is an expensive destination.

This article will help you understand the relative cost of various important products and services. It will also highlight aspects of life in the emirate which you may not have considered and will impact how far your salary goes. 

What is the basic salary in Dubai?

Dubai attracts workers from all around the world for a broad range of roles, from bankers to builders. As such, salaries can vary wildly. There are extremely high-paying jobs in Dubai, for example in booming industries such as technology and hospitality. Conversely, there are also extremely low-paying jobs. A 2012 report found that manufacturing wages in the UAE were among the lowest in the entire world³.

The United Arab Emirates (UAE) does not have a minimum wage in place. However, in 2013, the government issued the following guidance:

Minimum monthly salary guidance⁴:

Figures correct at 1 Nov 2019

How expensive is it to live in Dubai?

Dubai was ranked as the 21st most expensive city to live in in 2019⁵, with cities such as Victoria, New York, Tokyo and Hong Kong being more expensive. However, the city is pricier than London, Moscow and Chicago.

Expensive is a relative term — in this case, relative to salary. How expensive you find it will depend on where you’re from and how much you earn.

Is rent expensive in Dubai?

On average, rent in Dubai is around 26.99% cheaper, restaurants are 25.97% cheaper and groceries are 27.25% cheaper when compared to Chicago⁶. Public transport is also cheaper⁷, and the unemployment rate is lower.

However, the average salary in Chicago is greater than Dubai, so you may have more income to spend on the pricier food and rent.

Cheapest rent in Dubai

We have checked a number of apartment rental websites to look for the cheapest rents:

Data collected on Nov 1 2019

The average cost of an apartment in Dubai per neighbourhood

Maybe you want to know the average cost¹¹ of rent per year for an apartment in different neighbourhoods of the emirate. 

Dubai house prices

In late 2019, it was reported that “Dubai’s housing market remains ‘oversupplied’ despite the drop in prices over the last few years — real prices have fallen by almost 35% since mid-2014.”¹²

In mid-2019, an average Dubai house cost¹³ AED 2.46 million ($670,000, £517,752). The lowest end of the market bottoms out at around $168,000/£130,000¹⁴ for a two-bed flat, with mid-range options of around $388,000/£300,000 – with choices reaching more than $647,000/£500,000.

What is the average income in Dubai?

The table below mentions the average monthly salaries for various job categories in Dubai, according to The Middle East Salary Survey 2019.¹⁵

What are Dubai food prices like?

When assessing what food costs in any country, a good rule is that local food will be cheaper, i.e. food that’s produced or grown there. If food has to be imported it will be more expensive. Access is also a key factor — for example, food on smaller islands tends to be more expensive.

Some key facts:

• Restaurants can be cheap, but alcohol and coffee are expensive
• Eating out can be expensive compared to the rest of the Middle East¹⁶, with Dubai being the second most expensive city in the region after Tel Aviv.

Gasoline price in Dubai

Cost per litre:

Figures correct at Nov 1 2019¹⁷

How does this compare to the US and UK? 

• Petrol prices in the UK can be more than double the UAE prices (£1.27/$1.64 per litre of petrol and £1.31/$1.70 per litre of diesel at Nov 2019¹⁸)
• Petrol prices in the US are also more expensive, but cheaper than the UK ($0.78/£0.60 per litre at Nov 2019¹⁹).

The cost of health care in Dubai

A key living expense is health insurance. For American expats, and those coming from countries without national health systems, this is often already front of mind. For those from countries with socialised medicine or national health/insurance systems, it may not be. 

In Dubai, all migrants must legally have health insurance, but this is provided by an employer. Many companies include health insurance cover as part of a salary package; however, this may only constitute basic cover and an additional international health insurance policy may be required to fully cover the needs of you and/or your family.

What to consider when you move

Dubai is the 21st most expensive city in the world. However, as the 14th best paid city across the globe²⁰, these prices are relative.

If you’re planning to relocate, you will have to consider prices that you may not elsewhere. If you’re from the US, paying for health care insurance won’t come as a shock — this probably won’t be the same if you’re from the UK. When planning your relocation, don’t forget any one-off costs you may have: for example, buying a car.

Read our guides to the tax system in Dubai [AY1] and what the Dubai lifestyle is like for more information on what it’s like to live in the emirate.

SOURCE: Currency data provided by Morningstar for Currency and Coinbase for Cryptocurrency

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 [AY1]Link to article when live