Cost of Living in Dubai

While grandiose visions of tax-free wealth lures expats to the UAE in droves; it is worth remembering that the cost of living in Dubai can still be high.

The cost of accommodation was increasing exponentially and was approaching some of the most expensive in the world until the economic downturn in 2008. Rental prices have since stabilised, but they remain high. Tuition and fees for international schools have also been on the rise, and many expats choose to home school their children to avoid the extravagant pricing structures.

In the past many expats have been able to reconcile these costs by stipulating subsidies and allowances in their expat contract, but nowadays these products are perks of a time gone by. Still, expats should try their best to finagle inclusions if possible.

Aside from these larger bills, groceries, transport, utilities and of course petrol are quite reasonably priced when compared to other expat cities.

There are no taxes on salary or wages in Dubai, and sales tax is for the most part minimal.

Furthermore, as petrol and maintenance prices are greatly reduced, many expats find they are able to buy cars that are a better make and model than what they would be able to afford at home. The 4X4 Land Cruiser has become synonymous with the expat in Dubai lifestyle. Hiring a car is also an option; prices start at around Dhs.1500 for a small hatchback.
 
Having arrived in Dubai, many people also find they can afford small luxuries, like domestic help and childcare, due to the somewhat inflated salaries. It is commonplace for families to have a nanny and a housekeeper, others may also have gardeners and drivers.

Most villas have small maids' quarters attached. Families who choose to employ a maid are responsible for paying residence permit costs and healthcare in Dubai. The average monthly wage for domestic help is around Dhs. 1,200.