Cost of Living in Abu Dhabi
The cost of living in Abu Dhabi can be steep and is only predicted to become steeper as the country’s oil-exporting economy continues to thrive. Though many expats choose to move to Abu Dhabi to save money in the tax free environment, the wallet weary should be cautious to negotiate an adequate salary package before accepting a position in the capital of the UAE.
According to the Economist, Mercer and Xpatulator.com – some of the top providers of cost of living indicators – Abu Dhabi is among the top 100 most expensive cities for expatriates to live in. The Economist placed Abu Dhabi as 82nd most expensive city in the world, while Mercer placed Abu Dhabi at 26th, and the Xpatulator.com positioned Abu Dhabi as 74th.
The scales are a bit skewed mostly due to the outrageous price of accommodation in the city. Expats should anticipate their largest expense by far to be housing; rent can take up nearly 50 percent of a monthly salary.
A modest one-bedroom apartment can cost roughly USD 2,000 a month or the equivalent of AED 7,000, and a 2-3 bedroom apartment can run upwards of USD 4,000 monthly. It should also be duly noted that payment for one full year of rent can be demanded up front and is often not refunded if the lease is broken.
If possible, expats should take care to negotiate an annual housing allowance of at least USD 25,000.
Alcohol, fine dining and clothing costs can also potentially burn a hole in the expat pocket.
However, aside from the unavoidable expense of accommodation, the general cost of living in Abu Dhabi can be manageable for the budget conscious and the disciplined.
Car payments and school fees will surely be the next largest concern for expat families, and even these are comparably moderate. Depending on grade level, annual tuition ranges from AED 25,000 – 50,000 for competitive international schooling. Car payments run between AED 900 – 1,200 monthly for a vehicle in good condition capable of accommodating a small family – and decrease proportionately as the lease period is extended.
Home utilities average around AED 200. Petrol prices range from AED 6-7 per gallon.
Groceries are reasonably priced (anticipate AED 2,000 monthly) and a broad range of Eastern Asian takeaway options prove less expensive than many alternative locations (AED 5-20 for an individual meal).
Transportation is also cheap and easy, bus fares run you only a single Dirham, and taxis normally charge just below AED 10 for anything under a 3-4 kilometre journey.
Internet can be arranged for as little as AED 150 per month, and for the athletically inclined, a gym contract at a reputable facility should cost roughly AED 400 monthly.
Overall, expats aiming to accommodate and support a wife and child should aim for a monthly salary of at least AED 9,000 monthly EXCLUDING an allowance for accommodation.
According to the Economist, Mercer and Xpatulator.com – some of the top providers of cost of living indicators – Abu Dhabi is among the top 100 most expensive cities for expatriates to live in. The Economist placed Abu Dhabi as 82nd most expensive city in the world, while Mercer placed Abu Dhabi at 26th, and the Xpatulator.com positioned Abu Dhabi as 74th.
The scales are a bit skewed mostly due to the outrageous price of accommodation in the city. Expats should anticipate their largest expense by far to be housing; rent can take up nearly 50 percent of a monthly salary.
A modest one-bedroom apartment can cost roughly USD 2,000 a month or the equivalent of AED 7,000, and a 2-3 bedroom apartment can run upwards of USD 4,000 monthly. It should also be duly noted that payment for one full year of rent can be demanded up front and is often not refunded if the lease is broken.
If possible, expats should take care to negotiate an annual housing allowance of at least USD 25,000.
Alcohol, fine dining and clothing costs can also potentially burn a hole in the expat pocket.
However, aside from the unavoidable expense of accommodation, the general cost of living in Abu Dhabi can be manageable for the budget conscious and the disciplined.
Car payments and school fees will surely be the next largest concern for expat families, and even these are comparably moderate. Depending on grade level, annual tuition ranges from AED 25,000 – 50,000 for competitive international schooling. Car payments run between AED 900 – 1,200 monthly for a vehicle in good condition capable of accommodating a small family – and decrease proportionately as the lease period is extended.
Home utilities average around AED 200. Petrol prices range from AED 6-7 per gallon.
Groceries are reasonably priced (anticipate AED 2,000 monthly) and a broad range of Eastern Asian takeaway options prove less expensive than many alternative locations (AED 5-20 for an individual meal).
Transportation is also cheap and easy, bus fares run you only a single Dirham, and taxis normally charge just below AED 10 for anything under a 3-4 kilometre journey.
Internet can be arranged for as little as AED 150 per month, and for the athletically inclined, a gym contract at a reputable facility should cost roughly AED 400 monthly.
Overall, expats aiming to accommodate and support a wife and child should aim for a monthly salary of at least AED 9,000 monthly EXCLUDING an allowance for accommodation.
►Contract Negotiation in Abu Dhabi
Here follows up-to-date cost of living figures for Abu Dhabi:
Currency conversion: USD$ 1 = AED 7
| Food and Drink | |
| Milk | AED 5.00 |
| Cheese | AED 25.00 |
| Dozen eggs | AED 8.00 |
| White bread | AED 2.50 |
| Rice | AED 6.00 |
| White sugar | AED 4.00 |
| Large Coca Cola | AED 2.00 |
| Still mineral water | AED 1.50 |
| Olive oil | AED 15.00 |
| Tomatoes | AED 4.00 |
| Apples | AED 8.00 |
| Fresh beef filet | AED 40.00 |
| Fresh whole chicken | AED 18.00 |
| Fresh white fish | AED 40.00 |
| Table salt | AED 3.00 |
| Milk chocolate bar | AED 2.50 |
| Household | |
| Soap | AED 3.00 |
| Toothpaste | AED 7.00 |
| Shampoo | AED 10.00 |
| Deodorant | AED 10.00 |
| Utilities | |
| Purchase of low cost cell phone | AED 200.00 |
| 3 minute call - cell phone | AED 1.80 |
| Cable TV | AED 139-249 |
| Electricity | AED 150 |
| Water | AED 50 |
| Petrol per gallon | AED 6.25 |
| Eating out | |
| Three-course dinner in restaurant | AED 150.00 |
| Fast-food meal | AED 30.00 |
| Cup of coffee in bar/cafe | AED 12.00 |
| Entertainment | |
| Spirit (1 tot) | AED 20-25 |
| Bottle beer | AED 15-20 |
| Bar/Club Entry | Free-AED 50 |
| Marlborough Lights | AED 6 |
| Cinema Ticket | AED 30 |
| Entrance to beach | AED 30-200 |
| Services – health, appearance | |
| Gym Membership (annual payment per couple) | AED 3000-8000 |
| Average male haircut | AED 35 |
| Average female cut and blowdry | AED 110 |
| Manicure | AED 40 |
| Pedicure | AED 40 |
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