United Arab Emirates (UAE) is now one of the most appealing destinations in the world to the professionals, entrepreneurs, and families. It attracts individuals worldwide with its salaries that are not taxed, modern infrastructure and cosmopolitan style of living. However, the major question to ask before moving is What is the cost of living in UAE?
We will de-pocket the cost of housing, food, healthcare, transportation and lifestyle in UAE in this extensive guide including some of the largest cities of this nation such as Dubai, Abu Dhabi and Sharjah.
Housing Costs in the UAE
Generally, the monthly cost of rent is the highest to the people living in the UAE. This prices differ based on the city, area and the type of property.
- Dubai: An apartment with one bedroom in the city center is AED 6,000 -9,000 per month, whereas in the suburbs, it is AED 4,000 -6,000.
- Abu Dhabi: A little less than Dubai, as the one-bedroom apartments have an average of AED 5,000 -7,000 per month.
- Sharjah: A lot cheaper, rent is around AED 2,500 -4,000 per month.
Scores of landlords ask them to pay rent either once a year or once a quarter in advance, and in this case, expats need to prepare finances.
Food and Groceries
The prices of groceries in the UAE differ based on the preferences of shopping people and their way of living.
- Groceries monthly per capita: AED 1,000 -1,500.
- Dining out: Budget restaurant meal: AED 30 – 50.
- Two-way mid-range restaurant: AED 200-400.
- Coffee: Approximately AED 15-20 at the well-known cafes.
It is common with international supermarkets such as Carrefour, Spinneys, and Lulu Hypermarket that deal in groceries.
Transportation Costs
The UAE has a modern transport system, and most of the people drive instead of using public transport.
- Dubai Metro (monthly ticket): Approximately AED 300.
- Taxi costs: The lowest starting fare is AED 12 per kilometer costs approximately AED 2 -3.
- Fuel: It is relatively cheap in comparison with Europe approximately AED 3/liter(2025 rates).
- Car ownership: Purchase of cars is a usual thing; used cars begin at AED 20,000 40000, whereas luxury cars are very much accessible.
City centers have high rates of parking fees that can be as high as AED 2 -10/hour.
Healthcare Costs
The UAE has the best healthcare in the world yet the insurance is compulsory to its residents.
Health insurance:
- Basic coverage: AED 800 – 1,500 per year.
- Full coverage: 5, 000-15, 000/ year, based on age and the number of family members.
- Doctor visit: Exceeds AED 200 -400 with no insurance.
Health insurance is normally offered by the employer but before relocating expats need to ensure that they are covered.
Education and Childcare
One of the largest costs of expat families is education.
- Public schools: Schools that are mostly used by the Emirati citizens.
- Registered schools: The fees per year are AED 20,000-100,000, and it depends on the curriculum (British, American, IB, Indian).
- Nursery/childcare: UAE 1,500 to 3,500/month.
Parents are advised to spend sparingly since international schools in Dubai and Abu Dhabi are ranked one of the highest in the area.
Utilities and Internet
The utility rates are also quite high as the UAE is a hot country.
Electric, water, air conditioning, waste: AED 600 1200 a month in a small apartment.
Internet and mobile package: Approximately AED 300- 500 monthly.
Air conditioning would make the monthly payments highly expensive, particularly during the summer.
Entertainment and Lifestyle.
The UAE has unlimited ways of living, either through luxury shopping to the desert.
- Gym memberships: ranged between AED 200 and 600 per month.
- Cinema tickets: Around AED 40 – 50.
- Nightlife: It costs AED 100-300 to enter clubs and AED40-70 per drink.
- Travel: UAE is a key hub and therefore it is easy to fly to Europe, Asia, and Africa. Air Arabia and FlyDubai are low-cost airlines that have fares between AED 300 and 600.
Average monthly Budget in the UAE.
Below is a calculation of the cost of living per month:
- Single professional in Dubai: AED 8,000 -15,000.
- Family of four in Dubai: AED 20,000 – 35,000
- Students in Sharjah: AED 3,500 – 6,000
The budget will be highly determined by the lifestyle you lead, the house location you live in, whether your employer is providing accommodation or allowances.
Salary vs. Cost of Living
Tax-free income is one of the largest attractions in the UAE, as it implies that residents are not required to pay any deductions on their salary.
Monthly wage average: AED 12,000 -18,000 (it also depends on the profession and experience).
There are high-paying jobs (finance, IT, oil and gas, aviation) which can cost as much as AED 25,000 per month.
The cost of living may be expensive but it is because there is no tax on incomes that make the UAE a financial destination against Europe or North America.
Saving Tips in the UAE.
- Live in Ajman or Sharjah and travel to Dubai because of cheaper rent.
- Public transport in Dubai with Nol cards.
- Use the lower during-low discounts in restaurants and gyms.
- Buy in hypermarkets such as Lulu and save a lot of money.
- Think of carpooling applications to save on traveling.
Conclusion
The UAE has a high cost of living, which will be dependent on lifestyle, city, and family circumstances. Sharjah and Ajman are cheaper options to Dubai and Abu Dhabi. Rent, education and healthcare are the top costs but tax free salaries counterbalance these.
In general, the UAE is a country with a high standard of living, excellent infrastructure, and an unlimited range of opportunities in the host country, and it can be regarded as one of the most popular places in the world.
