Cost of Living in Saudi Arabia

The sandy, sun-bleached Kingdom of Saudi Arabia has an overall cost of living index that equates it with middle cost living locations.  To spin such a statement with perspective, westerners can anticipate their wallets would be affected in much the same way as if they were living in Poland – the most proximal partner in the cost of living index to the KSA.

Currently, Saudi Arabia’s capital city of Riyadh is ranked 130 out of the 282 most expensive places in the world for expatriates to live.  

The Saudi Arabia expat’s highest cost of living is housing, which has been increasing in price over the past few years. Depending on the standard of living one aspires to, accommodation in Saudi Arabia can cost from SAR 3,500 per month to upwards of ten times that amount.

Ironically enough, alcohol and tobacco products are relatively moderately priced; though as consumption of alcoholic beverages is illegal within Saudi Arabia, expats shouldn’t expect to benefit too graciously from economically pleasing beer or wine.  Groceries are also reasonably priced, but dining out can be costly.

Clothing and objects associated with recreation and culture can also be slightly pricier than the countries mid-range ranking would seem to negotiate, but relatively inexpensive transport and furniture and appliance costs balance out any tipping points.      
Domestic services in Saudi Arabia are very affordable with a house keeper costing on average SAR 2,000 per month.

Here follows an example of the expected division of expenses that a mid-level professional can anticipate as well as a cost guide for the essentials for living in Saudi Arabia:

 Estimated Expat Expenses in Saudi Arabia

Meet Bob, he’s a mid-level banker with an MBA and five years of experience in his industry.  Upon moving to the Kingdom of Saudi Arabia he should negotiate the following as part of his contract, and he should plan on itemizing his expenses accordingly.

1. SAR 240K Annual Basic Salary
2. SAR 80K Annual Housing Allowance
3. SAR 24K Annual Transportation Allowance
4. Free Medical Insurance for yourself, wife and kids
5. Free return Airfare to home base country for yourself, wife and kids annually

The above will entitle him to approximately SAR 350K per annum.

Expenses can be estimated as follows:

1. Compound Rent with all amenities - SAR 75,000 etc with formatting per annum.
2. Car lease or mortgage for a Toyota Camry or similar sedan style vehicle - SAR 30K per annum.
3. Utilities, Groceries, food, etc - SAR 75K per annum
4. Education for a single child - SAR 24K per annum
5. Other/Miscellaneous  - SAR 25K per annum

It is also recommended to try your best to negotiate a bonus prior to signing your contract.