Whether you’re planning to establish a business or seeking better job opportunities, understanding the cost of living in Dubai is crucial. In this guide, we’ll delve into the details of Dubai’s cost of living and provide a comparison to other major cities worldwide. With this information, you’ll gain valuable insights into the affordability of living in Dubai.
Cost of Living in Dubai
Dubai’s commitment to mitigating the impact of the COVID-19 pandemic, coupled with its efforts to attract global talent, has led to a decrease in the cost of living. As per Mercer’s Cost of Living Survey for 2021, Dubai ranked #42 globally in terms of affordability.
Comparing Dubai to Other Cities
When comparing Dubai’s cost of living to major expat hubs like Hong Kong, London, New York, and Singapore, Dubai emerges as a more affordable option. Take a look at the following comparison of living expenses:
Living Expenses Comparison:
| Location | Single person monthly cost without rent | Average rent in city centre (studio apartment) | Taxi Fare (1km) | Petrol (1 liter) |
|---|---|---|---|---|
| Dubai | AED 3,477.89 (USD 946.88) | AED 5,141.89 (USD 1,399.92) | AED 2.48 (USD 0.68) | AED 2.47 (USD 0.67) |
| London | £3,000 (USD 3,968.70) | £1,700 (USD 2,251.70) | £3.00 (USD 3.97) | £1.30 (USD 1.72) |
| New York | $5,000 (USD 5,000) | $3,000 (USD 3,000) | $2.75 (USD 2.75) | $0.85 (USD 0.85) |
| Paris | €3,000 (USD 3,371.10) | €1,300 (USD 1,457.81) | €1.14 (USD 1.28) | €1.60 (USD 1.79) |
| Cairo | EGP 7,000 (USD 443.48) | EGP 4,000 (USD 253.12) | EGP 3.50 (USD 0.22) | EGP 8.50 (USD 0.54) |
Rent
Housing expenses constitute a significant portion of the cost of living. In Dubai, rental costs vary depending on the location. Popular areas like Jumeirah Lakes Tower (JLT), Dubai Marina, Jumeirah Beach Residence (JBR), and Dubai’s Old Town offer relatively similar rental prices. Here’s an overview of typical rental costs:
Rental Costs:
| Location | Average Rent per Person (Studio Apartment) | Average Rent for Family of Four (Three-Bedroom Apartment) |
|---|---|---|
| Dubai | AED 5,141.89 (USD 1,399.92) | AED 14,500 (USD 3,945.78) |
| London | £1,700 (USD 2,251.70) | £4,000 (USD 5,298.30) |
| New York | $3,000 (USD 3,000) | $7,000 (USD 7,000) |
| Paris | €1,300 (USD 1,457.81) | €3,500 (USD 3,917.73) |
Education
Dubai provides both public and private schooling options for expat children. While public schooling is primarily for Emirati nationals, expat children can attend private schools by paying annual tuition fees. The cost of education in Dubai varies based on the type of school. Here’s a breakdown:
Education Costs:
| Education | Dubai | London | New York |
|---|---|---|---|
| Public School (Annual Tuition) | AED 6,000 (USD 1,635) | Free for residents | Free for residents |
| International/Private School (Annual Tuition) | AED 13,630 – 21,400 (USD 3,710 – 5,830) | £15,000 – £30,000 (USD 19,925 – 39,850) | $20,000 – $40,000 (USD 20,000 – 40,000) |
| Higher Education (Undergraduate) | AED 173,400 (USD 47,209) | £9,000 – £27,750 (USD 11,945 – 36,730) | $26,000 – $55,000 (USD 26,000 – 55,000) |
| Higher Education (Graduate) | AED 54,800 – 82,200 (USD 14,919 – 22,379) | £10,000 – £35,000 (USD 13,275 – 46,475) | $20,000 – $45,000 (USD 20,000 – 45,000) |
Transportation
Dubai offers various transportation options, including car ownership and public transportation. Buying a car involves considering factors like the condition of the vehicle, depreciation, and fuel costs. Public transportation, such as the Dubai Metro and buses, offers convenient travel within the city. Here are some transportation cost details:
Transportation Costs:
| Transportation | Dubai | London | New York |
|---|---|---|---|
| Taxi Fare (1 km) | AED 2.48 (USD 0.68) | £3.20 (USD 4.25) | $2.75 (USD 2.75) |
| Bus Fare (Single Ticket) | AED 5 (USD 1.36) | £1.50 (USD 1.99) | $2.75 (USD 2.75) |
| Monthly Bus Pass | AED 300 (USD 81.68) | £81.50 (USD 108.08) | $127 (USD 127) |
| Price of 1 L Petrol | AED 2.47 (USD 0.67) | £1.27 (USD 1.68) | $0.89 (USD 0.89) |
Healthcare
Dubai is renowned for its high-quality healthcare system. While locals can access free medical facilities, expats must have private medical insurance. The Dubai Health Authority mandates private health insurance for expats, ensuring access to both public and private healthcare facilities. Here’s an overview of healthcare-related costs:
Healthcare Costs:
| Healthcare Service | Dubai | New York | London |
|---|---|---|---|
| Doctor’s Consultation (General) | AED 250 – 500 (USD 68 – 136) | $200 – $400 (USD 200 – 400) | £100 – £200 (USD 133 – 266) |
| Dental Cleaning | AED 300 – 600 (USD 82 – 163) | $100 – $250 (USD 100 – 250) | £50 – £150 (USD 66 – 200) |
| Hospital Stay (Per Day) | AED 1,000 – 2,500 (USD 272 – 680) | $1,500 – $3,500 (USD 1,500 – 3,500) | £400 – £800 (USD 532 – 1,065) |
| Prescription Medication (Average) | AED 50 – 200 (USD 14 – 54) | $10 – $200 (USD 10 – 200) | £8 – £40 (USD 11 – 53) |
Conclusion
Understanding the cost of living in Dubai is essential for individuals and families planning to relocate. Dubai offers a relatively affordable lifestyle compared to other global cities. From housing and education to transportation and healthcare, Dubai provides a range of options to suit various budgets. By considering these factors, you can make informed decisions about living in Dubai.
Pingback: Ultimate Guide to Moving to Dubai: Everything You Need to Know - tradelinksme