UAE is a country where many people move for money. Since it has no taxes, it offers major financial advantages. Specific basic items are affected by the absence of taxation, such as gold, cars, and electronic goods. However, housing costs tend to be high, as are the prices of most household goods and food items, but there are also a number of local and regional options that are cheaper and of equal quality.
You will find that living in the UAE isn't cheap. UAE living costs vary depending on the emirate, but overall, they are high. The price of living has risen in Abu Dhabi and Dubai in recent years. In either location, expats are still likely to spend half of their pay on rent alone.
Dubai is the most expensive emirate (Abu Dhabi is second), while Ajman is the cheapest.
In UAE we have figured out the average monthly costs of living based living of a middle-class families, the budget is just an assumption and is meant purely for informational purposes only, as it may not be for people with high salaries whose earnings amount to thousands. There can be differences in costs depending on who you are and where you live. Below is an average of major monthly expenses for a single person, couple, and family with two children:
MAJOR EXPENSES IN UAE
To know how much, it costs to live in UAE, then it's important to figure out the average costs for residents of the UAE on a monthly basis. This is what we'll be discussing in this section.
1. Housing
It is a good idea to be aware of the costs of housing, even if most expats have their housing covered by their employers.
Monthly rent for 85 m2 (900 sqft) furnished accommodation in expensive area will be approx AED 8,052 and monthly rent for 85 m2 (900 sqft) furnished accommodation in normal area will be approx AED 6,306.
For a studio apartment, the average rent in the UAE is between 30,000 and 50,000 AED per year. Apartments with 1 and 2 bedrooms can be found between 70,000 and 100,000 AED per year. An apartment in Dubai, the most expensive emirate, will cost you about 96,670 AED per year. The average price of a one-bedroom apartment in Dubai is 56,200 AED a year.
Best Accommodation At Affordable Prices In Dubai
2. Grocery
The way you live and your food preferences can greatly affect your grocery bills. It is likely that your grocery bill will be high if you prefer to shop at retailers such as Waitrose or Spinneys and purchase imported food or meat cuts that are expensive. Shop at supermarkets like Carrefour, Lulu Hypermarket, or Union Cooperative for affordable food, purchase in-season produce, and look for bundle offers and discounts to reduce your grocery bill.
Here are some groceries and their prices you might find useful:
Due to Sharia law, alcohol is only available at certain hotels, restaurants, and clubs. Alcohol is only available to residents with a special permit.
3. Education
For a UAE citizen who works for the government or public sector, the cost of education for their kids is free. Those who work in the private sector must pay for education. Schools have different policies regarding fees.
Typical monthly fees at top schools in UAE ranges from AED 4,000 to AED 9,500, according to the grade your child is in. Although, in the UAE, there are many affordable schools that will only cost you about AED 2,800 to AED 5,200 per month.
Also Read: List Of Top 20 Indian Schools In UAE And Fee Structure
Take a look at the monthly tuition fees (for 10 months) of an affordable school in Dubai compared with an expensive school in Dubai, for students in Grade
4. Utilities
The average monthly cost for utilities like electricity, water, cooling, and garbage for a 900 sq. Ft apartment is 607.96 AED. Electricity and running the AC are the most expensive components of utility costs. The average cost of internet in the UAE is only 300 AED.
This chart provides a rough idea of monthly utility charges in the UAE:
5. Leisure
A resident of the UAE can choose from many attractions and activities in the city like fine dining, movies, fitness, sports, and world-renowned tourist attractions. They all fall under Leisure.
- Gym membership for 1 month will cost AED 272.
- The cost of one meal at the affordable restaurant will be AED 30.
- Three-course meal for two at a mid-range restaurant will cost between AED 250 and AED 300
- At a fine dining restaurant, a three-course meal for two will cost from AED 500 to AED 1000.
- Having one cocktail at the downtown club will cost AED 81.
- The cost of 2 movie tickets is AED 86.
- Tickets for 2 people (the best seats available) will cost 578 AED.
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6. Clothing
If you choose designer labels, clothing can be quite expensive. Here is a rough estimate of what to spend:
- 1 pair of branded jeans: AED 234.
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- 1 summer dress in a high street store (zara, h&m or similar brands): AED 205.
- 1 pair shoes of famous sport brands like nike, adidas, or same: AED 346.
- 1 pair of men’s leather business shoes: AED 360.
7. Medical and Personal Care
All UAE residents are required to have health or medical insurance, which is factored into the cost of living. Health insurance must be provided by the company that sponsors you. Your company will often cover your family members as well. The cost of health insurance varies depending on the coverage, with Essential Benefits Plans starting from 600 AED per year. Individual comprehensive plans cost on average around AED 5,500 per year. The price of a comprehensive plan can start at AED 15,000 - AED 20,000 for a family of four. In Dubai, medical insurance can cost more than 70,000 AED for a family of four, when considering worldwide coverage and other premium benefits.
Personal care and Medical Care costs are as follows:
- Cold medicine for 6 days (tylenol, frenadol, coldrex, etc.): AED 20
- 1 box of antibiotics (12 doses): AED 47
- Short visit to private doctor for 15 minutes: AED 237
- 1 box of 32 tampons: AED 21
- Deodorant or roll-on: AED 20
- Hair shampoo (400 ml): AED 23
- 4 rolls of toilet paper: AED 13
- Standard men's haircut in expat area of the city: AED 42
Expats with a health card can receive 50% off medical treatment.
one-time fees to obtain a health card are:
- Fee for expatriates up to 10 years - AED 120.
- Expatriates 18 and older pay AED 320.
- AED 25 for nationals up to ten years.
- AED 120 for nationals 18 years old and above.
Also Read:
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8. Transportation and Car
In the UAE, public transportation options include taxis, metros, trams, and pool cars. Having a car is essential to enjoy a comfortable life in the UAE, as travelling by public transport during the harsh summer would be difficult.
The transportation charges in the UAE are as follows:
- Taxi Fare (for 1 KM): AED 2.44
- Metro (depends on distance): AED 2.50–6.50
- Long-distance bus: AED 7–20
- Monthly ticket public transport: AED 274
- Nol Card (Monthly Pass, All Zones): AED 350 per month
- Petrol (1 litre): AED 2.16 to AED 2.04
- Gas (1 litter): AED 2.23
- Parking: AED 2–8
Also read: Driving In The UAE: How To Get A UAE Driving License
9. Domestic Help
Living expenses also include cleaning services for accommodations. There are variations in prices depending on the type of service you require. A part-time maid costs between AED 30 to AED 45 per hour, while a once-a-week domestic helper costs around AED 390 per month. An average full-time domestic helper would cost 2,700 AED.
Read: How Expats Can Sponsor A Maid Or Nanny In Dubai
We have provided an overview of the expenses in the UAE here. A person should ask an employer for detailed costs of living figures when negotiating a job contract, which will assist in determining whether the proposed job is financially attractive or not. Please let us know in the comments if you find it useful. Share it as much as possible to help others. We welcome your feedback and suggestions.
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