Cost of Living in the UAE: What to Expect When Moving for Work

So, you’re thinking about moving to the UAE for work? That’s a big step, and one of the first things on your mind is probably, “What’s it going to cost to live there?” The cost of living in the UAE can be a bit of a shock for some, especially in popular cities like Dubai and Abu Dhabi.

Sure, the UAE offers tax-free income, but expenses like housing and entertainment can add up quickly. That said, there are ways to save money, depending on where you live and how you adjust your lifestyle.

In the following sections, we’ll break down each cost category so you know exactly what to expect and how to budget for your new life in the UAE.

Breaking Down the Cost of Living in the UAE

Housing Costs in the UAE

Housing will likely be your biggest expense when moving to the UAE, especially if you plan to live in major cities like Dubai or Abu Dhabi.

Rent prices can range widely depending on the type of accommodation you’re looking for and the neighborhood you choose.

For example, in Dubai, a one-bedroom apartment in the city center can cost anywhere from AED 5,000 to AED 8,000 per month (roughly $1,360 to $2,180), while the same apartment in a suburban area might go for AED 3,000 to AED 5,000 ($820 to $1,360).

In Abu Dhabi, the prices are slightly lower but still substantial. A one-bedroom apartment in the city center can cost around AED 4,900 (about $1,335). Meanwhile, the same apartment outside the center might cost around AED 3,650 per month (about $990).

If you’re moving to a smaller emirate like Sharjah or Ajman, rent will be more affordable. A one-bedroom apartment here can cost between AED 2,000 and AED 4,000 ($545 to $1,090), depending on its proximity to the city.

Remember that many rental agreements in the UAE are for one year and require upfront payments—usually a few months’ rent in advance or post-dated checks for the year. That can be a bit overwhelming if you’re not used to it, so make sure to factor this into your budget.

Many expats opt to share accommodations to cut down on housing costs. Roommates can significantly lower monthly expenses and utilities, especially if you’re in a high-demand area, such as the Dubai Marina or Downtown Abu Dhabi.

Transportation Expenses

Public transport in the UAE is reliable and affordable, especially in major cities.

If you plan on using it, know that Dubai has a well-connected metro, buses, and trams. A monthly metro pass typically costs around AED 300 to AED 500 (about $80 to $135), depending on the zones you travel through. Single rides are cheap, too, costing anywhere from AED 3 to AED 7.50 ($0.80 to $2).

Buses are the primary mode of public transport in Abu Dhabi. A monthly pass costs around AED 80 (roughly $22), making it even more affordable than Dubai.

However, owning a car is very common among expats, especially if you live outside city centers. Fuel prices are relatively low compared to many Western countries, with the average cost per liter hovering around AED 3.50 ($0.95).

Additionally, apps like Uber and Careem are widely available if you prefer ride-hailing services. A typical ride across town in Dubai costs between AED 20 and AED 60 ($5.50 to $16.50).

Food and Grocery Costs

Restaurant prices in Dubai and Abu Dhabi can vary widely.

For a mid-range meal at a casual restaurant, expect to pay around AED 40 to AED 100 ($11 to $27) per person.

Fine dining establishments can be significantly pricier, with meals costing AED 300 or more ($82+).

On the other hand, fast-food meals (in McDonald’s or similar chains) will set you back around AED 35 ($9.50)​

Grocery prices are fairly reasonable, depending on whether you buy imported or local products.

When shopping at supermarkets like Carrefour, Lulu, or Spinneys, you’ll find that prices for basic items such as bread, milk, and eggs are affordable:

• Loaf of bread: AED 5 ($1.36)
• 1 liter of milk: AED 6 ($1.63)
• 12 eggs: AED 12 ($3.26)​

Imported goods will naturally cost more, so if you’re trying to save money, opt for local brands and produce. Local markets also offer fresh fruits, vegetables, and seafood at lower prices than supermarkets.

Healthcare and Insurance

Healthcare in the UAE is high-quality, but it isn’t cheap if you are not covered by insurance.

Luckily, the UAE mandates that expats must have health insurance, either provided by their employer or purchased individually.

Suppose your company provides health insurance. Great! That will cover most of your medical expenses, including doctor visits, hospital stays, and sometimes even dental care. However, if you need to purchase a policy on your own, expect to pay anywhere from AED 5,000 to AED 10,000 annually ($1,360 to $2,725).

As for routine visits, a consultation with a general practitioner can cost around AED 200 to AED 400 ($55 to $110) without insurance. Specialist consultations will be higher, ranging from AED 400 to AED 600 ($110 to $165) per visit. In the meantime, an emergency visit could cost you AED 500 to AED 3,000 ($136 to $820), depending on the severity of the issue.

Pharmaceuticals are widely available and regulated but be prepared for slightly higher prices than you might be used to. For example, broad-spectrum antibiotics can cost around AED 50 to AED 100 ($13.50 to $27).

Entertainment and Leisure Activities

The UAE is known for offering a range of luxury and budget-friendly entertainment options, so how much you spend will depend on what you prefer to do in your free time.

Either way, here are some costs to give you an idea of what you can expect:

• Cinemas: A movie ticket typically costs around AED 35 for standard seats to AED 50 for VIP ($9.50 to $13.50).
• Gyms and fitness: Gym memberships range from AED 200 to AED 500 ($55 to $135) per month. However, upscale gyms with premium services, like fitness classes and personal training, can be more expensive.
• Outdoor activities: The UAE is known for its outdoor and adventure offerings, like desert safaris and water sports. Expect to pay around AED 150 to AED 300 ($40 to $82) for activities like dune bashing, camel riding, and sandboarding. Prices for activities like jet skiing or parasailing can range from AED 200 to AED 500 ($55 to $135).
• Theme parks: A day pass for Dubai Parks and Resorts or Ferrari World in Abu Dhabi costs around AED 250 to AED 350 ($68 to $95). Some parks offer discounted tickets if you book in advance or go during off-peak times, though.

Don’t let the cost of living in the UAE stop you from moving!

Yes, the cost of living in the UAE can be high, especially in places like Dubai and Abu Dhabi, but with the right planning and smart choices, you’ll find ways to stretch your income. Now that you know what you can expect, cost-wise, you can leap with confidence and reap the rewards of your new life in the UAE.

 

Author’s Bio: Ahmed Al-Farsi is a Senior Relocation Consultant at Four Winds KSA, a premier moving and logistics company in Saudi Arabia. With extensive experience assisting expats transitioning to the UAE, Ahmed provides expert advice on managing costs and navigating life in a new country.