Uncovering the Hidden Costs of Living in the UAE
You may be curious about the cost of living in the United Arab Emirates if you have considered moving there. It is famous for its luxurious homes and shopping.
What are the costs of living in the UAE like for an ex-pat compared to your home country?
Here’s what you need to know!
Is it expensive to live in UAE?
The costs of living in the UAE vary significantly between emirates, so the cost of living there mostly depends on what city you choose to live in. Therefore housing, transportation, and food cost can be quite expensive in more developed and urban areas such as Dubai and Abu Dhabi. But due to the high salaries and tax-free income offered in the UAE, many people choose to live there despite the high costs.
Apart from the high costs of living in the UAE, it offers a high standard of living and a wide range of amenities.
How much money do you need to live in UAE?
A significant amount of money is required to live in the UAE, particularly in Dubai. According to the Expatriate Group, one should expect to earn at least 10,000 to 15,000 AED per month to live comfortably. This salary range should cover rent, bills, and some disposable income to enjoy the city’s attractions and amenities.
Despite this, the costs of living in the UAE can vary depending on several factors, including the location and size of your accommodation and your lifestyle.
Here are the average living expenses you might need to pay in the United Arab Emirates
Cost of Food and Alcohol in UAE
Food and alcohol prices in the United Arab Emirates (UAE) vary depending on the item and where it is purchased. The UAE offers relatively affordable grocery items such as milk, bread, eggs, chicken breast, apples, and tomatoes.
It costs approximately 6 AED (2 USD) for a liter of milk, about 5 AED (1 USD) for a loaf of bread, and about 11 AED (3 USD). The cost of chicken breast is around 28 AED (8 USD), while apples and tomatoes are relatively inexpensive, costing around 8 AED (2 USD) and 6 AED (2 USD) per kilogram, respectively.
Alcohol, however, presents a very different situation. Sharia law restricts the sale of alcohol to certain restaurants, hotels, and clubs, and residents need a special license to consume it. As a result of this restriction, alcohol in the UAE is more expensive, with a bottle of wine costing around 58 AED (16 USD) and a bottle of beer costing around 16 AED (4 USD).
Food and alcohol are relatively affordable for most residents in the UAE, except for alcohol, which is quite expensive due to Sharia law restrictions. The price may vary depending on the location and type of establishment, so it’s always a good idea to check before purchasing.
Expenses of Healthcare
Healthcare costs in the United Arab Emirates (UAE) vary depending on whether an individual has public or private insurance. Health insurance is another cost ex-pats must bear, similar to education. With proof of health insurance, one can receive a residence visa in the UAE.
Dubai and Abu Dhabi employers must provide health insurance to their employees. Individuals must purchase their health insurance if their employer does not cover it. The cost of a reasonably comprehensive health insurance policy in the UAE is about 10,000 AED per year (2,720 USD).
Some families and individuals may find this cost high, but it is important to remember that healthcare in the UAE is generally of high quality.
Healthcare costs can be even higher for families. Approximately 17,000 AED (4,630 USD) per year will cover a family of four. It is important to remember that healthcare is a vital aspect of life, and it is important to have coverage to protect one’s health and well-being.
However, it is important to remember that healthcare is compulsory in the UAE and an essential part of life. Before purchasing an insurance policy, check the coverage details, terms, and conditions.
Educational Costs
Education costs vary between private and public schools in the United Arab Emirates (UAE). Expatriate families must pay a fee for their children to attend public schools, free for Emirati nationals. For government schools, the annual cost is Approximately 1,635 USD (1,600 AED). This can still be a substantial expense for some families, even though it is relatively affordable compared to other countries.
It can be more expensive for ex-pat families to send their children to private or international schools. Annual tuition for a private or international school in the UAE can range from 27,640 to 43,790 AED (7,525-11,922 USD). Costs vary according to grade level and school.
It’s important to note that ex-pat families can face significant educational expenses in the UAE. Although the UAE offers a wide range of extracurricular activities and facilities, the quality of education is generally high. Families in need of financial assistance can also apply for scholarships and financial aid.
There are a variety of schools and grade levels in the UAE, so the cost of education can vary. Educational quality in the UAE is generally high, and financial aid is available to ex-pat families.
Rental Costs
The cost of renting a property in the United Arab Emirates (UAE) can vary depending on its location and type. Most foreigners have their housing covered by their employers, but it is still a good idea to be aware of the costs for those who do not.
A studio apartment in the UAE costs between 30,000 and 50,000 AED (8,100-13,600 USD) per year. Apartment sizes, locations, and amenities can influence this cost.
Apartments with one or two bedrooms can be more expensive, costing between 70,000 and 100,000 AED per year (19,000–27,220 USD). Apartment prices can also vary based on location, size, and amenities.
Dubai, the most expensive emirate, has even higher rental costs. The average price of a one-bedroom apartment in Dubai is 96,670 AED per year (26,317 USD), while a low-end apartment is 56,200 AED per year (15,300 USD).
The rental cost of a property in the UAE can vary greatly depending on its type and location. To understand the billing methods and costs, it is also advisable to check the contract’s terms and conditions.
Expenses related to Utilities
Several factors can affect utility costs in the United Arab Emirates (UAE), such as the size of the home, the number of people living there, and the amount of electricity and water used. According to internations.org, monthly utility costs for electricity, gas, and water average 600 AED (163 USD).
Most of this cost will be devoted to electricity, especially during the hot summer when air conditioning is heavily used. Air conditioning can be quite expensive, so it’s important to be aware of usage and conserve energy whenever possible.
In the UAE, internet costs are relatively affordable, with an average of 300 AED (82 USD) per month. If you need to stay connected, this is a good option because the cost is relatively low compared to other countries.
Depending on your location, residence type, and utility provider, utility costs can vary. To understand the billing methods and costs of the contract, you should also read the contract terms and conditions.
Generally, utilities in the UAE are relatively affordable and can be managed by being mindful of usage and understanding the contract terms and conditions.
The Cost of Traveling and Transportation
In the United Arab Emirates, transportation costs vary depending on the mode of transportation. There is also the option of taking a taxi, with a minimum fare of 10 AED (3 USD). When traveling long distances, however, keep in mind that prices can quickly add up.
The metro is another cost-effective option, ranging from 2.50–6.50 AED (1–2 USD), depending on the distance. It’s a great option if you’re looking for a convenient and affordable means of transportation.
Take a long-distance bus if you’re traveling to another city. Depending on the destination, this mode of transportation costs between 7 and 20 AED (2 and 5 USD).
Parking costs vary from 2–8 AED (1–2 USD) depending on your driving location. In addition, don’t forget to factor in the cost of gas, which is around 2 AED (1 USD) per liter.
A wide range of options is available to suit different budgets regarding traveling and transportation in the UAE. Taxis, metros, buses, or drives are all convenient and cost-effective ways to get around in the UAE.
Sports and Leisure Costs
Sports and leisure activities are plentiful in the United Arab Emirates. The cost of staying fit, hitting the courts, or watching the latest flick will vary based on the activity.
A gym membership for one adult can cost around 251.84 AED per month for fitness enthusiasts. Those who wish to maintain their health and stay in shape should consider this option.
Tennis is another popular pastime for those who want to stay active. The cost of renting a tennis court for one hour on the weekend is around 119.08 AED. The UAE has beautiful weather, and this is a great way to get some exercise.
You can always catch a movie at the cinema for a more relaxed activity. Tickets for international releases can cost around 45.00 AED. It’s a great way to unwind and enjoy some entertainment.
The Price of Clothing and Shoes
Brands and types of clothing and shoes can affect the price in the United Arab Emirates. 210.40 AED can buy you a pair of jeans from a popular brand like Levis 501. Chain stores like Zara and H&M sell summer dresses for around 197.81 AED.
Nike running shoes, considered mid-range, cost 339.03 AED for those who like to stay active. A leather business shoe for men costs 381.13 AED if they are looking for a dressy and elegant pair for a business function. As a whole, clothing, and shoes in the UAE are relatively affordable, but the price can vary from brand to brand.
Maid Services Cost
Expats who hire housemaids must sponsor them and renew their visas every year. Sponsoring a maid in Dubai costs AED 5,500 per year plus an additional AED 2,000 refundable deposit to GDRFA. This does not include the monthly salary, ranging from AED 1,500 to AED 3,500, depending on the work required, prior experience, and other factors.
Also, foreigners can hire a full-time maid through maid service agencies in Dubai, which includes a one-time agency fee in addition to the maid’s salary, or hire part-time maids with hourly rates between AED 30 and AED 45. Calculating the average cost of living in Dubai should consider this cost.
Conclusion
The costs of living in the United Arab Emirates (UAE) can vary depending on several factors, such as location, lifestyle, and personal preferences. It is relatively affordable to buy food, alcohol, utilities, education, rentals, transportation, sports and leisure, and maid services. Rent and alcohol, however, can be quite expensive depending on where you live.
There are financial aid options available to ex-pats, but the quality of life in the UAE is generally high, so expect significant expenses. Ahead of signing a contract, it is a good idea to research various options and understand the terms and conditions.
