Cost of Living in Abu Dhabi

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The cost of living in Abu Dhabi is relatively expensive
The cost of living in Abu Dhabi for expats is steep and is only predicted to rise as the emirate’s oil-exporting economy continues to thrive. Though many move to Abu Dhabi to save money in the tax-free environment, expats should be aware that the quality of life comes at a high price. 
 
Salaries in Abu Dhabi have come down, and many of the allowances included in expat packages of the past are no longer normal protocol. That said, with the right kind of research, expats can accurately estimate their costs and take the appropriate steps to wrangle for a better wage and the lifestyle they may have imagined.

As is the case anywhere, an individual's cost of living in Abu Dhabi is highly variable; the opportunity to live a life of opulence exists, as does the chance to get by cheaply and conveniently.

One unfortunate reality of the emirate is that nationality plays a primary role in asserting what kind of salary one is able to earn. Bear in mind that Emiratis will always exist at the top of the pyramid and, through no fault of their own, South Asians will make up the lowest tier. Western expats fall somewhere in the middle.

Accommodation, automobiles and schooling (for those with children) comprise the bulk of expenses, while food, clothing and entertainment are generally affordable.

Cost of accommodation in Abu Dhabi


No matter one's social status, the costs associated with accommodation in Abu Dhabi are outrageous. Expats should anticipate their largest expense to be housing; rent can take up nearly 50 percent of a monthly salary.

On-island accommodation is generally more costly than off-island accommodation, as is the case with furnished and unfurnished housing, respectively.

Don't forget to broach the subject of a shipping allowance or, for those planning to buy most of their household goods upon arrival, a start-up stipend.

Utilities are reasonably priced in Abu Dhabi. However, utilities nonetheless form part of an expat's account, so be prepared to pay, especially if planning to keep a garden and an air-conditioned villa.

Flat-sharing is a good solution to exorbitant rental rates, but do be careful of renting a room in a villa that has been divided; this is illegal in Abu Dhabi.
 

Cost of transportation in Abu Dhabi


Alongside accommodation, the cost of renting or buying an automobile will likely be another major expense for expats in Abu Dhabi.

Public transport is available and economical; however, most who have relocated to Abu Dhabi prefer to use a car to get around the emirate.

An option that can save a good deal of money is to ship one's car to Abu Dhabi. Costs vary depending on the location of an expat's home country, and import duties must be paid; but on the whole, if planning to stay in Abu Dhabi for a year, the total cost of both import and export may be significantly less than leasing or buying a car in the emirate.

One unforeseen cost that is impossible to anticipate, but readily avoidable, is the outrageous cost of parking and speeding tickets in Abu Dhabi. In an effort to curb illegal behaviour the authorities have attached hefty fines to these violations.
 

Cost of schooling in Abu Dhabi


Expat parents with children must certainly work hefty tuition fees into their annual budget. Private international schools in Abu Dhabi charge a fortune for an education that, some Westerners feel, is hardly worth the extravagant price tag.

Tuition ranges considerably, with additional charges such as school uniforms, annual bus fare, textbooks and a non-refundable enrolment fee, adding to the costs.

Assignees should try to negotiate an allowance into their salary package. Although education stipends are less common, they do still exist.
 

Cost of health insurance in Abu Dhabi


In Abu Dhabi, employers are legally required to provide expats with health insurance. So luckily, this is one cost assignees won't need to concern themselves with. That said, some employers use local health insurance, which is not recommended for those at-risk individuals who have significant health issues.

Older expats, or those in poor health, may need to maintain health insurance in their home country and make sure their employer finances emergency evacuation insurance. Otherwise, local health care is up to standard for minor issues.
 

Cost of food and clothing in Abu Dhabi

 
Food and clothing costs have the potential to monopolise great portions of an expat's salary, or to cost next to nothing. There is an impressive assortment of cuisine and shopping options in Abu Dhabi to suit all budgets.

Local foodstuffs will always be more reasonably priced than imported goods, and ethnic-style (Indian, Arabic, Chinese and African) restaurants are much cheaper than hotel eateries and bars. Organic food and Western brands can summon a significant grocery bill, so don't be afraid to try the Emirati equivalents to cut costs.

Furthermore, alcohol is expensive, so try and buy duty-free products in the airport.

Clothing from the Carrefour and the downtown shops is incredibly affordable, while the big names and popular labels found in Abu Dhabi's malls will be expensive. Books and electronics also tend to be more costly than expats may be used to, and as a result, many purchase these goods during the odd trip home.
 

Cost of living in Abu Dhabi chart

Prices may vary depending on product and service provider. The list below shows average prices for March 2017.

Monthly accommodation (In a good expat area)

Furnished two-bedroom villa
AED 12,000
Unfurnished two-bedroom villa AED 9,500
Furnished two-bedroom apartment AED 10,000
Unfurnished two-bedroom apartment AED 8,000

Groceries

Eggs (dozen) AED 12
Milk (1 litre)  AED 6
Rice (1kg)  AED 8.40
Loaf of white bread  AED 4.20
Chicken breasts (1kg) AED 25
Pack of cigarettes (Marlboro)  AED 10

Eating out

Big Mac Meal AED 25 
Coca-Cola (330ml) AED 2
Cappuccino  AED 18
Bottle of beer AED 35
Three-course meal for two at a mid-range restaurant AED 200

Utilities

Mobile to mobile call rate (per minute) AED 0.50
Internet (uncapped ADSL or cable – average per month)  AED 330 
Basic utilities (per month for a small apartment) AED 400

Transportation

Taxi rate (per kilometre) AED 5
Bus/train fare to city centre AED 2
Petrol/gasoline (per litre)  AED 1.92

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