Dubai is proud of its reputation as the “City of Gold.” Dubai is a city of opportunity, innovation, and luxury that attracts millions of visitors and expatriates each year. While it offers an unmatched lifestyle, it’s no secret that living in Dubai can be expensive compared to other emirates.
Whether you’re welcoming new residents to our home or reflecting on the city’s cost of living as a UAE citizen, this guide will help break down Dubai’s expenses and show how we can make the most of life in this vibrant city.
Is Dubai Expensive?
As locals, we know Dubai is more expensive than other emirates like Sharjah or Ajman, but it’s also more affordable than global cities like New York or London.
According to estimates:
- A single person living in Dubai typically needs around 3,700 AED/month, excluding rent.
- Living in Abu Dhabi costs slightly less, at 3,100 AED/month (excluding rent).
- Ajman remains one of the most affordable places to live, with an average cost of 2,300 AED/month, excluding rent.
Whether Dubai feels expensive depends on your lifestyle and spending habits, but thoughtful choices can help manage costs effectively.
Factors Influencing the Cost of Living in Dubai
The cost of living in Dubai varies widely depending on personal preferences, such as housing choices, dining habits, and modes of transportation. Let’s explore these key factors.
Housing in Dubai
For UAE citizens, housing is often more accessible thanks to government initiatives like the Sheikh Zayed Housing Programme, which provides support for Emiratis in securing their homes.
However, here’s what expats or private renters typically encounter:
- Buying Property:
- In the city center: ~1,240 AED/sq. ft.
- Outside the city center: ~818 AED/sq. ft.
- Renting Apartments:
- 1-bedroom (city center): ~7,350 AED/month
- 1-bedroom (outside city center): ~4,040 AED/month
- 3-bedroom (city center): ~12,500 AED/month
- 3-bedroom (outside city center): ~7,725 AED/month
For citizens, Emirati housing areas like Mirdif or Al Warqaa offer more affordable options tailored to families and our community needs.
Food Expenses in Dubai
As locals, we appreciate Dubai’s vibrant food scene, from traditional Emirati cuisine to international restaurants. However, food costs can add up, depending on dining habits:
- Dining Out:
- Budget meal: ~36 AED
- Three-course meal for two (mid-range): ~297 AED
- Cappuccino: ~18 AED
- Grocery Prices:
- 1 kg of rice: ~4 AED
- 12 eggs: ~11 AED
- 1 kg of tomatoes: ~2.6 AED
- 1 gallon of milk: ~26 AED
Cooking at home with fresh produce from Union Coop, Lulu Hypermarket, or local markets often helps save money while enjoying traditional meals like Machboos and Harees.
Healthcare in Dubai
Healthcare is a top priority in the UAE. As citizens, we enjoy access to government-provided healthcare facilities. For residents, health insurance is mandatory.
- Employed Residents: Employers provide insurance, often including the Essential Benefits Plan for lower-income workers.
- Golden Visa Holders: Access to premium healthcare plans starting from 2,393 AED/year.
Dubai’s hospitals and clinics are world-class, ensuring excellent care for everyone.
Dubai Transport
Dubai has an efficient transportation system, from the Metro to RTA taxis. Here’s a look at costs:
- Taxis: Start at ~11 AED
- Metro or Bus Tickets: ~6 AED (one-way)
- Petrol: ~12.9 AED/gallon
For citizens and residents, Salik (toll) accounts and fuel-efficient vehicles can help manage transport costs.
Education Costs in the UAE
For UAE nationals, public education is free at government schools and universities. Expats often opt for private or international schools, which come at a higher cost:
- Private kindergarten: ~2,750 AED/month
- International school (primary): ~42,600 AED/year
Many Emiratis also choose to invest in private schooling for a globally recognized curriculum, ensuring competitive opportunities for future generations.
Shopping and Entertainment
Dubai offers endless opportunities for shopping and entertainment, from malls like The Dubai Mall to family-friendly destinations like Global Village. Typical costs include:
- Utility Bills: ~735 AED/month
- Internet (60 Mbps): ~365 AED/month
- Gym Membership: ~275 AED/month
- Cinema Ticket: ~48 AED
- Clothing:
- Jeans: ~220 AED
- Dress: ~195 AED
- Shoes: ~330 AED
Dubai’s festivals, like the Dubai Shopping Festival, also offer exciting discounts and deals.
Monthly Salaries in Dubai
Dubai is a hub of opportunity, and the average salary reflects that. The typical monthly salary in Dubai is around 14,700 AED after tax, with professionals in finance, tech, and construction often earning higher wages.
Understanding the UAE Dirham
The UAE Dirham (AED) is a stable currency, pegged to the US Dollar at ~3.67 AED/USD. Whether shopping at local souks or dining in luxury restaurants, cashless payment options like cards and digital wallets are widely accepted.
FAQs for UAE Citizens and Residents
Q: How can UAE citizens save on living expenses in Dubai?
A: Take advantage of government subsidies, shop smartly during sales, and explore less expensive housing areas.
Q: Is Dubai suitable for families?
A: Absolutely! Dubai offers excellent schools, family-friendly attractions like Dubai Parks and Resorts, and safe neighborhoods.
Q: What are the benefits of living in Dubai as a UAE citizen?
A: Emiratis benefit from free healthcare, subsidized housing, and access to world-class infrastructure while enjoying a tax-free income.
Q: How do I manage transportation costs in Dubai?
A: Use the Dubai Metro for affordable commutes, or consider fuel-efficient vehicles if you prefer driving.
