Cost of Living in Dubai

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Before you pack your bags, be aware that the cost of living in Dubai is relatively high. It remains one of the most expensive cities in the Gulf Region, with prices for goods and services often surpassing those in neighbouring countries.

Compared to other major cities worldwide, Dubai’s cost of living sits on the pricier end, particularly when it comes to housing, dining out, and leisure activities. While it’s generally pricier than Abu Dhabi, both cities require careful budgeting, especially if you’re used to a lower cost of living.

Dubai has no taxes on salaries or wages, and sales tax is minimal. Even with the favourable tax climate, living expenses can add up quickly. Many people find themselves spending on luxuries they wouldn’t have considered back home.

The cost of accommodation in Dubai is one of the biggest expenses you’ll face when moving to the city. While negotiating housing and school fee allowances used to be common in employment contracts, these perks are now harder to come by. If possible, try to negotiate inclusions in your package.

Cost of accommodation in Dubai

The cost of accommodation in Dubai has been on the rise, and projections suggest that prices will continue to increase. The Dubai Rent Law has been updated to provide stronger tenant protections. Landlords must now give 90 days’ notice for rent increases, and tenants have improved dispute resolution mechanisms at their disposal. These changes aim to create more stability in the rental market.

If you’re looking for more affordable areas, consider Dubai International City, known for its budget-friendly apartments and community vibe. Jumeirah Village Circle (JVC) offers a balance between price and lifestyle, making it popular among young professionals and families. Dubai South, near Al Maktoum International Airport, is emerging as a cost-effective housing hub.

Renting Accommodation and Utilities in Dubai
Best Places to Live in Dubai

Domestic help

Hiring domestic help in Dubai is common due to relatively high salaries. Many households have a nanny, housekeeper, or even a driver. Most villas come with maids’ quarters. If you choose to employ domestic staff, you’ll need to cover their residence permit costs and healthcare.

Hiring Domestic Help in Dubai
Residence Permits for Dubai

Cost of transport in Dubai

The cost of transport in Dubai depends on how you get around. Owning a car is the fastest and often the most cost-effective option given the low petrol and maintenance costs. You may find that you can afford a better make and model than back home.

Dubai’s metro system is expanding. The new Blue Line, set to open in 2029, will add 19 miles (30km) of track and 14 stations. By 2040, the city aims to increase the number of metro stations from 55 to 140, significantly enhancing public transport coverage.

Driving in Dubai presents challenges. Reckless driving, abrupt lane changes, and aggressive tailgating are common. Major roads like Sheikh Zayed Road experience heavy congestion, particularly during peak hours.

To improve accessibility, the Roads and Transport Authority (RTA) has introduced buses with wheelchair access and upgraded marine transport stations. Additionally, real-time public transport tracking is now available, allowing you to plan journeys more efficiently.

Getting Around in Dubai

Cost of groceries and household goods in Dubai

The cost of groceries and household goods in Dubai has evolved significantly in recent years, with digital innovation and sustainability reshaping shopping habits. Online grocery delivery services, such as Carrefour Now and InstaShop, have surged in popularity, offering same-day delivery to keep up with Dubai’s fast-paced lifestyle.

If you’re mindful of sustainability, you’ll find an increasing number of eco-conscious choices. Many residents are shifting towards organic and locally sourced products, cutting down on plastic usage, and supporting brands with sustainable packaging.

When it comes to pricing, locally produced goods such as fresh vegetables, dairy, and meat tend to be more affordable than imported products. Imported goods often have higher price tags due to transport costs, import duties, and branding. Speciality items and international brands not widely available in the region can be particularly pricey.

Dubai’s extensive malls offer more than just shopping – they’re an experience in themselves. You’ll find everything from high-end electronics and international fashion brands to local crafts. While household electronics are reasonably priced, clothing can still be on the expensive side, especially for premium brands.

Shopping, Lifestyle and Activities in Dubai

Cost of entertainment and eating out in Dubai

The cost of entertainment and eating out in Dubai varies widely depending on how you like to spend your free time. There's something for every budget, from luxury rooftop bars to laid-back shisha cafés. If you’re looking for something immersive, Dubai has seen a rise in augmented and virtual reality attractions, blending tech with entertainment for unique experiences.

Dubai’s major cultural festivals, such as the Dubai Shopping Festival, continue to be massive draws, offering a mix of entertainment, retail experiences, and cultural showcases. These events provide a great way to enjoy world-class performances without always needing to splurge.

Alcohol regulations play a role in pricing and availability. If you want to buy alcohol for home consumption, you’ll need a personal liquor licence. Otherwise, alcohol is available at licensed venues such as hotels, bars, and select restaurants. Due to taxes and import duties, prices remain high, but happy hours and brunch promotions help make nights out more affordable.

If you’re after budget-friendly fun, Dubai has plenty of options. Public beaches and parks, such as Jebel Ali Beach, offer free or low-cost outdoor activities, from water sports to picnic spots. The city also hosts regular free community events, including outdoor movie nights, art exhibitions, and live music performances.

Best Things to See and Do in Dubai

Cost of education in Dubai

The cost of education in Dubai is a significant consideration for families moving to the city. International schools dominate the education scene, offering British, American, and International Baccalaureate (IB) curricula. These institutions maintain high academic standards, but tuition fees have steadily increased in recent years.

Some world-class international schools have established campuses in the emirate, catering to the city’s multicultural population. While these schools provide world-class education, securing a spot in them can be competitive.

Beyond traditional schooling, Dubai offers alternative education paths. Homeschooling is permitted under regulations set by the Knowledge and Human Development Authority (KHDA), while online education is becoming more popular, giving students flexible learning opportunities. Vocational training centres also provide specialised programmes in industries like aviation, healthcare, and technology.

Many expat parents try to negotiate education allowances as part of their employment packages to offset costs. Others explore more affordable schooling options or opt for homeschooling to manage expenses.

International Schools in Dubai

Cost of healthcare and health insurance in Dubai

Every resident needs to factor in the cost of healthcare and health insurance in Dubai. The city is home to world-class medical facilities, with both public and private hospitals offering high standards of care. The Dubai Health Authority (DHA) regulates the sector to ensure services remain top-notch.

Health insurance is mandatory for all residents, and as of January 2025, private-sector employers are required to provide coverage for their employees. While UAE citizens receive free healthcare at public hospitals, expats must rely on insurance to access both public and private services.

Many residents prefer private healthcare due to shorter waiting times and access to more advanced treatments. These facilities offer a high level of personalised care but often come at a premium cost.

Telemedicine is also expanding in Dubai, with insurers increasingly covering virtual consultations, online prescriptions, and remote monitoring for chronic conditions. This shift makes healthcare more accessible and convenient for residents.

Healthcare and Health Insurance in Dubai