What is the Cost of Living in Dubai?

The cost of living in any part of the world entirely depends on your choices, lifestyle, and preferences. Dubai is a luxurious, beautiful, vivacious, and fast-growing city. It attracts the attention of millions across the globe for its architectural marvels, numerous sightseeing opportunities, world-class lifestyle, and safe environment. It is a popular area where many people can live, from singles to couples and families. Dubai can offer you a cost-effective or luxurious lifestyle. Here, we will discuss the monthly expenses and the cost of living in Dubai.

We will also present a subtle comparison of the cost of living in Dubai vs Abu Dhabi concerning housing, utilities, food, school, and more! So, whether you plan to open a business in Dubai or apply for a job there, it is essential that you know the average and estimated cost of living in Dubai. Read on to explore the details!

Typical Monthly Expenses in Dubai

The monthly cost of living in Dubai depends on essential expenditures like groceries, housing, education, food, healthcare, and transportation. According to Mercer’s annual Cost of Living Survey for 2021, Dubai ranks 42nd. However, Dubai is making relevant changes to its regulations, especially post-pandemic, to undermine these monthly expenses in Dubai. For a single entity or a family of four, here is an estimate of the cost of living in Dubai in 2022:

• • Single Person AED –  Approximately 3,477.89 (USD 946,88)
  • Family of Four AED – Approximately 11,958.62 (USD 3 255.83)

• Cost of Accommodation in Dubai

Tracing the average cost of living in Dubai, housing costs are one of the most important expenses. Housing costs depend on what kind of property you live in – owned or rented, and the preferred area of residence. Jumeirah Lakes Towers (JLT), Old Dubai, and Dubai Marina, Jumeirah Beach Residence (JBR) are some of Dubai’s most sought-after residential developments, especially for expats. Dubai’s real estate market is available for different budgets, from luxurious villas to comfortable and suave studios.

Rent is higher in wealthy areas like Barsha, Jumeirah, Dubai Marina, and Arabian Ranches. Still, rent-savvy residents can look for budget-friendly accommodation at Dubai Silicon Oasis, Al Nahda, Reem, and Mirdif.

• Housing

Some of the typical housing rental options in Dubai are: 

• Groceries

The cost for groceries depends on the place from where you shop. You can shop for expensive and luxurious at Waitrose or Spinneys or you could shop for groceries at competitive budget-friendly supermarkets like Lulu Hypermarket, Carrefour, or Union Cooperative. Don’t miss out on purchasing groceries available at decent discounts and offers.

• Other Utilities

The cost of utility includes electricity, water connection (undertaken by DEWA), TV, mobile expenses, and internet charges. The electricity bill wobbles from summer to winter. Your monthly TV and internet plans can cost approximately AED 389 per month and can even go up to AED 1000 or more per month if you opt for premium services. Mobile monthly expenses in Dubai can vary from AED 125 per month to AED 500.

• Cost of Transportation in Dubai

People generally prefer to drive their cars as fuel prices are cheaper in Dubai. Public transport is also a preferred way of commuting in the city. However, the cost of car servicing and insurance could be high, depending on the kind of car you own, which affects your overall monthly expenses in Dubai. You also have to travel to commute by ferries, cabs, public buses, and the metro. An NoI public transport card can cover all important city zones and comes at around AED 350.

• Cost of Schooling in Dubai

In Dubai, you can choose from the British, American, Indian, or IB curriculum for your children’s education. The top schools are expensive, with school fees ranging between AED 4,000 – AED 9,500. The Indian schools are comparatively more affordable, with a monthly expense of approximately AED 2,800 – AED 5,200. This school fee excludes the cost of school transport, trips, stationery and books, uniforms, etc.

• Cost of Health Insurance in Dubai

It is mandatory to get health insurance. You may have to purchase it if your employer has not provided it for you. Local people in Dubai can avail of these medical services for free, while ex-pats can be eligible for 50% if they have a health card.

The fees for Health Card is as follows :

• • Expatriate Fee up to 10 years – AED 120 (USD 32.67) and from 18 and above – AED 320 (USD 87.12)
  • Nationals Fee up to 10 years – AED 25 (USD 6.81) and from 18 and above – AED 120 (USD 32.67)

The lower-income employees or non-working residents in Dubai can also get an Essential Benefits Plan (EBP) launched in 2014. This is a great way to get access to the minimum level of health insurance. The charges are:

• • Employees : AED 650-725
  • Dependents (aged 0-65) : AED 650
  • Non-working married females (aged 18-45) : AED 1,600
  • Elderly parents : AED 2,500
  • General domestic help : AED 650

Medical insurance premiums start from AED 600 per year and can go up to AED 5,500 per year for a comprehensive plan. For a family of four, it can range from AED 15,000 – AED 20,000 and go as high as AED 70,000 with all comprehensive medical card benefits.

• Cost of Food and Clothing in Dubai

Food and clothing are not very expensive items in Dubai. The expense is entirely based on the choice and needs of the people living in Dubai. Normally, people don’t like to splurge on eating out or wearing expensive clothes. So, this cost is an individual choice and depends from person to person.

• Cost of Entertainment in Dubai

There are hundreds of things that you can do in Dubai. You can go for some window-shopping at one of its grand malls, visit fine-dining restaurants, catch a movie at IMAX cinemas, go for adventurous extreme sports, or spend some time with your friends or family at Dubai’s world-famous tourist attractions. The cost for each zone of entertainment is different.

• Cost of Househelp in Dubai

You can sponsor house help which can cost you around AED 5,500 per annum, along with an extra charge of AED 2,000 refundable deposit to GDRFA. The monthly salary of the house help ranges between AED 1,500 – AED 3,500. You will have to offer full-time maid insurance, food, and accommodation. You can also hire part-time help from maid service agencies in Dubai, who have approximate hourly rates of AED 30 – AED 45 on average.

Cost of Living in Dubai UAE per Month

Let us look at some of the costs that have been discussed above, after which we can bifurcate the cost of living in Dubai for singles, couples, and families:

Grocery Items : 

Cost of Utilities :

Cost of Transportation :

Cost of School Education :

Cost of Entertainment :

Average Cost of Living In Dubai For Singles

Average Cost of Living in Dubai for Couples

Average Cost of Living in Dubai for a Family of Four

Cost of Living in Dubai vs Abu Dhabi

Consumer Prices for people in Dubai are 18.96% higher than in Abu Dhabi (without rent) and 14.90 higher with rent. Rent in Dubai is 9.00% higher, along with restaurant prices which are 34.68% higher than in Abu Dhabi. Groceries in Dubai are 5.98% higher than in Abu Dhabi. The purchasing power is also 13.31% higher in Dubai than in Abu Dhabi.

Let’s take a look at the comparison of the approximate ‘cost of living in Dubai vs Abu Dhabi:

In Conclusion

Living in Dubai is a dream for many, but several people have questions regarding the monthly expenses in Dubai. This article was all about a generic and estimated cost of living in Dubai in 2022 which will give you an approximate idea of how you can financially manage your stay in Dubai.

You can discover more by speaking to the professionals about the accurate costs, but at the end of the day financial liabilities and the cost of living in Dubai entirely depends on your choice and needs.

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