Cost of Living in the United Arab Emirates

The average cost of living in the Emirates is approximately $950 per month for one person and $3,000 for a family of three, excluding rental housing. These amounts can vary based on the emirate, specific area and individual lifestyle. Dubai is known to be the most expensive emirate, while Sharjah typically offers the lowest prices.

Factors affecting the cost of living

The UAE is recognized as an international financial, business, and cultural hub, contributing to a high standard of living. Despite this, the overall cost of living is approximately 20% lower than in the USA and 10% lower than in Canada.

After accounting for housing, the main monthly expenses in the UAE include food, utilities, transportation, medical care and leisure activities. These costs can vary due to several factors:

• Location: The emirate and specific area you choose to live in can significantly impact your expenses. Dubai has the highest prices, followed by Abu Dhabi, the capital of the UAE. In contrast, Ras Al Khaimah and Sharjah are becoming increasingly popular among expats and business professionals, but their costs remain relatively lower, with prices in Ras Al Khaimah being 19% lower than in Dubai.
• Travel expenses: Your travel frequency within the emirate, proximity to your workplace, and whether you rely on public transportation or own a private vehicle will affect your overall costs.
• Type of housing: The type of accommodation you choose to rent — whether it’s a studio, apartment, or villa — will also influence your monthly expenses.
• Lifestyle: Dining out, entertainment choices, personal interests, language courses and additional activities for children can all lead to significant variations in monthly expenditures.

Housing costs in the UAE

Housing is one of the largest expenses in the UAE. Lease agreements in the Emirates are typically for one year, so rental prices are based on this duration. Many newcomers initially rent their homes and later purchase property in areas they find appealing after a year or two.

Rental of real estate in the Emirates

The cost of renting in Dubai, Abu Dhabi, Ras Al Khaimah, Sharjah or other emirates varies depending on the area. Properties in prestigious and popular locations tend to be more expensive than those in the suburbs. For example, in Dubai, the minimum price for a 1-bedroom apartment in sought-after areas such as Dubai Marina, Downtown Dubai, Palm Jumeirah and Jumeirah Beach Residence (JBR) is $27,000.

In contrast, in Abu Dhabi, you can rent 2-bedroom apartments on Al Reem Island or Yas Island for the same amount.
Here are the average prices for various types of real estate in the central regions of the emirates for comparison:

Rental of real estate in the UAE

Buying property in the UAE

The real estate market in the UAE is one of the fastest-growing in the world, driven by high demand, a stable economy, and significant interest by foreign investors. There is no property tax in the Emirates, and prices for luxury residences in Dubai are lower than in Hong Kong, London, and other major metropolitan areas. The average ROI here is 5.7%.

Foreigners can purchase real estate in designated freehold zones, which are actively being developed by well-known developers. Dubai alone has more than 50 such zones, including popular areas like Dubai Marina, Downtown Dubai, Palm Jumeirah, Jumeirah Beach Residence (JBR) and Business Bay.

According to the Global Property Guide, the residential real estate sector has shown steady growth in 2024. In Dubai, housing prices, including luxury properties, increased by 21%. In Abu Dhabi, the growth was 7%, while Ras Al Khaimah and Sharjah saw an increase of 4%. It is expected that the trend of high demand and rising prices will continue at the same level for the next 2 to 4 years.

Buying property in the UAE

Public utilities in the UAE

In the UAE, the utilities provided include:

• Electricity
• Water (including irrigation and swimming pools)
• Gas supply
• Solid waste removal
• Central air conditioning.

Each emirate manages its own energy and water supply. Whether you are a tenant or a homeowner, these services are activated before you move into your new home. Additional services are typically provided by the management company of your complex or community. Average monthly utility costs are as follows:

• Dubai — $200
• Abu Dhabi — $180
• Ras Al Khaimah — $140
• Sharjah — $140.

Note! Internet service is not included in the list of utilities and can be connected at your discretion. On average, the cost of the internet in the Emirates is about $100. If bundled with cable TV, the total can range from approximately $200 to $270.

For reference, let’s compare housing costs in Dubai and London. Here are the minimum prices for accommodation in the city centers.

Food and restaurant expenses

The cost of food in the UAE can vary significantly based on shopping habits and dietary preferences. The average monthly grocery basket in supermarkets and grocery stores costs approximately $250 to $350 per person. This cost may be higher if shopping at premium chain supermarkets like Waitrose or Spinneys.

For dining out, a three-course lunch or dinner for two typically costs around:

• Dubai — $80
• Abu Dhabi — $70
• Ras Al Khaimah — $40
• Sharjah — $40

However, dining at international restaurants in tourist areas can start from $100 per person.

Transportation costs in the UAE

The UAE boasts well-developed public transportation, with Dubai as the leading emirate. Available services include the metro, tram, bus, monorails, and land and water taxi services. In Dubai, subway fares range from $0.82 to $3 depending on the distance. Frequent subway users can purchase a NOL travel card, which reduces the fare to about $55 to $95 per month on average. In Abu Dhabi, metro fares range from $0.54 to $2.50, and a travel card costs around $55 per month.

Important! The Dubai and Abu Dhabi metros feature separate carriages for women and children, in addition to mixed carriages for both men and women.

Bus and taxi fares vary by emirate:

• Dubai: Bus fares range from $0.82 to $2.30; taxi fares begin at $3.30 with an additional $0.82 per kilometer
• Abu Dhabi: Bus fare is $0.82; taxi fares start at $3.30 with $0.54 per kilometer
• Ras Al Khaimah: Bus fare is $2.50; taxi fares begin at $1.35 with an additional $0.54 per kilometer
• Sharjah: Bus fare is $1.35; taxi fares start at $1.08 with $0.43 per kilometer.

Health expenses

Healthcare in the UAE is renowned for its quality. There are over 200 hospitals certified by JCI standards. Medical care is predominantly paid for, except in emergencies, and only UAE citizens receive free healthcare.
Private health insurance is mandatory for all foreigners, starting at around $150 per person. Extended insurance plans can cost up to $4,000. A one-time doctor’s consultation typically costs between $30 and $80, and a specialist’s home visit ranges from $80 to $190.

How to move to the UAE

When planning a move to the UAE, it’s essential to consider all organizational matters, projected expenses for the first year, and potential living arrangements. Housing represents one of the largest expenses, prompting many foreigners to purchase real estate immediately. This investment allows for the procurement of a resident visa, facilitating a comfortable life in the Emirates.

The UAE offers a 2-year resident visa and a 10-year Golden Visa. The 2-year visa, valid only in Dubai, requires a real estate investment starting at $204,000. This visa also extends to family members, such as spouses, children and elderly parents. The Golden Visa can be obtained in any emirate and is issued for 10 years upon purchasing property valued at $545,000. It covers the investor’s domestic staff, in addition to immediate family. These visas are automatically renewed as long as the property ownership is maintained.

In terms of living costs, Dubai is the most expensive emirate. It boasts the highest-priced and most desirable real estate in the region. Monthly expenses for an individual in Dubai average around $1,100, while a family of three can expect to spend approximately $3,600, not including rental housing costs.

Sharjah is an affordable, developed, and convenient emirate that offers resort-like amenities. The estimated cost for one person to stay there is around $800, while a family of three can expect to spend approximately $2,500. When compared to Dubai and Abu Dhabi, prices in

Sharjah, as well as in Ajman and Umm Al-Quwain, are typically 20–30% lower.
Astons specialists can provide guidance on all related matters, assist in applying for a Golden Visa, and ensure that the process is legally secure.

FAQ 

Is it expensive to live in Dubai?

Dubai is known for its high standard of living, making it relatively expensive. However, prices here are approximately 20% lower than in the USA and 10% lower than in Canada.

What is the average cost of living in Dubai?

Monthly expenses for an individual in Dubai reach around $1,100, while a family of three can expect costs of about $3,600, excluding rental housing.

What is the cost of living in the United Arab Emirates?

The average cost of living in the Emirates is about $950 per person, excluding rental housing. This amount varies by emirate, area, and lifestyle, with Dubai being the most expensive and Sharjah offering lower prices.

What is the cost of housing in Dubai, including average rental prices?

In central and coastal areas of Dubai, the average price per sq. ft is $560, while in other areas, it’s approximately $327 per sq. ft. Renting a studio averages around $10,000 per year, and 2-bedroom apartments averages about $40,000 annually. In popular areas like Dubai Marina, Downtown Dubai, and Palm Jumeirah, the minimum rent for a 1-bedroom apartment starts at $27,000. Renting a villa in the green area of DAMAC Hills starts at $48,000, while in Palm Jumeirah, prices begin at $130,000.

What is the optimal income for living comfortably in Dubai?

To live comfortably in Dubai, it is recommended to earn around $5,000 per month. This figure represents the average salary in the city.

Are daily expenses and prices in Dubai higher than in other cities?

Yes, they are. Costs in Dubai and Abu Dhabi are generally higher compared to other emirates like Ajman, Umm Al-Quwain, Ras Al Khaimah and Sharjah, where prices can be 20–30% lower. Dubai is considered the most expensive emirate in the UAE to reside in.

What factors influence the cost of living in the UAE?

The primary monthly expenses in the UAE, after housing costs, include food, utilities, transportation, medical care and leisure activities. These costs can vary based on the emirate, how often you travel, whether you use a private car, and your overall lifestyle choices.