With its tax-free salaries and modern lifestyle, it’s no surprise that many expats choose to call the UAE home. But beyond the career prospects and vibrant cities, understanding the cost of living is key to planning your finances and making the most of your time here. From housing to daily expenses, having a clear picture of costs can help you set realistic expectations.
At Remitly, we know that managing money wisely is essential for expats balancing life abroad and supporting loved ones back home. That’s why we’ve put together this guide to break down the cost of living across different emirates. Whether you’re considering Dubai, Abu Dhabi, or more budget-friendly options like Sharjah and Ajman, this article will help you navigate expenses, from rent to healthcare, so you can make informed decisions with confidence.
Comparing living expenses in the UAE
The UAE is made up of seven emirates, each with its own unique vibe and living costs. These are: Abu Dhabi, Dubai, Sharjah, Ajman, Ras Al Khaimah, Fujairah, and Umm Al Quwain.
While Dubai’s modern skyline and Abu Dhabi’s cultural scene attract many, some expats prefer the quieter, more affordable lifestyle in places like Ajman or Ras Al Khaimah. No matter which emirate you call home, the cost of living depends on factors like housing demand, salaries, and infrastructure, so where you choose to live can have a big impact on your expenses.
Prices can vary widely, especially when it comes to housing. Renting a one-bedroom apartment in the city centre, for example, will cost significantly more than a similar home in a quieter area.
Why it matters for expats
If you’re moving to the UAE, figuring out how much daily life will cost is just as important as securing a job. Average salaries in the UAE can range anywhere from 5,000 AED to 20,000 AED per month, but how far your income stretches depends on where you live. For example, someone earning a Dubai salary might have different housing options than a family earning a minimum salary in Abu Dhabi.
Beyond rent, expats also consider things like commuting costs, school fees, and access to healthcare when deciding where to live. Many also compare UAE expenses to their home country to see if the move makes financial sense. By understanding these factors, you’ll be better prepared to make informed choices about your new life in the UAE.
A brief guide to the UAE’s major emirates
If you’re moving to the UAE, where you choose to live will have a big impact on your daily expenses. Each emirate has its particular lifestyle, so it’s worth exploring your options before settling in.
- Abu Dhabi: As the capital and largest emirate, Abu Dhabi is known for its modern infrastructure, career opportunities and cultural landmarks like the Louvre Abu Dhabi. While high-end areas can be pricey, there are more affordable options if you look beyond the city centre.
- Dubai: With its iconic skyline, luxury malls, and world-class entertainment, Dubai is a global hotspot. Living here can be expensive, but there’s a wide range of housing options, from mid-range apartments to high-end villas in areas like Jumeirah.
- Sharjah: Offering a more traditional and family-friendly atmosphere, Sharjah is often chosen by newcomers looking for lower rent while staying close to Dubai. It’s also known for its rich cultural scene and historical sites.
- Ajman: The UAE’s smallest emirate is also one of the most affordable. Many people live here and commute to Dubai, as it’s just a short drive away.
- Ras Al Khaimah: If you love nature and outdoor activities, this emirate is worth considering. With its scenic mountains, growing tourism sector, and relaxed vibe, it’s an attractive choice for those seeking a quieter lifestyle.
Why newcomers choose the UAE
The UAE is home to a huge expat community, drawn by strong job markets in finance, tourism, and real estate, and a high standard of living. While Abu Dhabi and Dubai remain the top choices, Sharjah and Ajman are becoming increasingly popular for those looking to save on rent while staying close to the action. Since the cost of living varies across the Emirates, exploring different areas before signing a lease can help you find the best fit for your budget and lifestyle.
Housing costs in the UAE
Finding a place to live is one of the biggest decisions you’ll make when moving to the UAE. You might be drawn to the glittering high-rises of Dubai or the quieter suburbs of Sharjah or Ajman, and you’ll find that housing costs vary widely depending on location, amenities, and lifestyle preferences.
Renting vs buying
Most expats in the UAE choose to rent, especially if they’re not planning to stay long-term. Rental prices range from 1-bedroom apartments in Ajman at 25,000 AED per year to luxury villas in Abu Dhabi that can cost over 246,000 AED per year. Where you live will depend on your budget, how close you want to be to work, and the type of environment you prefer.
Buying property is also an option, particularly for those planning to stay long term. In some areas of Dubai and Abu Dhabi, foreigners can purchase freehold properties, which can be a great investment. If you choose this option, consider resale value, potential rental income, and additional fees before making a decision.
Housing costs in major emirates
- Abu Dhabi: If you’re looking at waterfront areas, expect higher prices. However, there are plenty of mid-range neighbourhoods that offer more budget-friendly options.
- Dubai: Housing costs vary significantly. For example, an apartment in a central area like Jumeirah can cost between 70,000 AED per year to 200,000 AED per year.
- Sharjah: Many people working in Dubai choose to live here for lower rents. The commute can be long, but the savings often make it worthwhile.
- Ajman: One of the most affordable emirates, especially if you don’t mind living in older buildings outside the city centre.
Daily living expenses in the UAE
Although the UAE is often associated with a high-end lifestyle, living on a moderate budget is possible if you choose the right emirate and spending habits. Your day-to-day spending on food, transport, and utilities will shape your monthly budget.
How much does food cost?
Grocery prices vary depending on whether you buy local products or imported brands. By shopping smart and looking for deals, a couple might spend around 800–1000 AED per month on groceries.
Eating out also varies greatly. Local cafeterias and street food spots offer meals for as little as 20 AED, while high-end restaurants in Dubai or Abu Dhabi can easily cost 200 AED or more per person.
The good news is that the UAE has a diverse food scene, with everything from Arab and Indian flavours to Western and Asian cuisine. Cooking at home is the most budget-friendly option, and supermarkets like Carrefour, Lulu, and Spinneys often have discounts to help you save.
How much does transport cost?
Public transport in the UAE includes buses, the Dubai Metro (4 AED for a standard ticket), and even ferries in some emirates. If you rely on public transport, a Nol card in Dubai or a bus pass in Abu Dhabi can keep costs low. Taxis and rideshares like Uber and Careem are convenient but can be pricey, especially during peak hours.
Many residents prefer driving, as petrol is more affordable compared to other countries. However, owning a car means factoring in insurance, maintenance, and parking fees. In Sharjah and Ajman, where public transport is more limited, personal cars or carpooling are common choices.
Utility costs in the UAE
Electricity, water, and air conditioning costs depend on your home size and usage. Utility bills from providers like DEWA (Dubai) or ADDC (Abu Dhabi) typically start at around 800 AED per month for an apartment but can be higher in larger homes or during the summer when AC use is high.
Healthcare and education costs in the UAE
A significant portion of your living costs in the UAE will probably go to health insurance and schooling. Although the UAE has excellent healthcare infrastructure, prices can vary, and insurance coverage sometimes depends on your employment package. Education is also diverse, ranging from private academies to more affordable public options.
How much does healthcare cost?
In Abu Dhabi and Dubai, you’ll find that employers provide health insurance, but coverage levels differ. Some plans only cover basic medical needs, while others include private hospitals and specialist care.
If you have family members who need coverage, you might have to pay extra. Without employer insurance, private health plans start from 2,000 AED per year.
Public hospitals offer affordable check-ups, especially if you have an Emirates ID, but private clinics tend to charge higher fees. Healthcare costs also vary by location—some areas like Ras Al Khaimah or Ajman might have lower prices compared to Dubai and Abu Dhabi.
Schooling costs in the UAE
If you have children, school fees will be a key part of your budget. Public schools are free for Emirati citizens but charge tuition for expat students.
Most expat families choose private schools, which offer a variety of curriculums, including British, American, and International Baccalaureate. For example, average fees in Dubai can range from 12,000 AED per year to over 64,000 AED per year at top-tier institutions.
For university education, costs vary based on the institution and field of study. Many students choose their home location based on nearby schools to reduce commute times, so it’s worth considering this when planning your budget.
What affects living costs in the UAE?
How much you spend each month in the UAE depends on several factors, including your salary, housing choices, and lifestyle. While some areas are known for their high price tags, there are ways to manage your budget and live comfortably.
How your salary and lifestyle impact costs
The UAE has a thriving economy with opportunities in industries like oil and gas, tourism, real estate, and tech. Salaries can be competitive, but so can expenses, especially in high-end areas like Downtown Dubai or central Abu Dhabi.
If you earn around 5,000 AED per month, renting in a prime location may be challenging, whereas a household earning 35,000 AED per month can find a comfortable apartment and cover essential bills.
Your lifestyle also plays a big role. Eating out at luxury restaurants and shopping at designer stores will quickly add up. However, if you prefer local markets, budget-friendly dining, and free community events, you’ll find it much easier to keep costs in check.
Comparing living costs in the UAE and other countries
Compared to countries like the UK, Canada, or the US, the UAE’s affordability is a mix. Housing in Dubai and Abu Dhabi can be expensive, but tax-free salaries help balance things out. Groceries and fuel are often cheaper than in some countries like the UK and the USA, but international school fees can be higher.
Many expats find that, despite higher living costs in some areas, they can still save money, especially by cutting back on unnecessary expenses. No matter where you choose to live, planning your budget wisely will help you enjoy life in the UAE while setting aside savings for the future.
FAQs
Which emirate is the most affordable to live in?
Ajman is often considered the cheapest emirate, offering lower rents compared to Dubai and Abu Dhabi. Sharjah is another budget-friendly option, especially for those who work in Dubai but want to save on housing. Ras Al Khaimah is also a great choice if you prefer a quieter, more scenic lifestyle with relatively low living costs.
What salary do you need to live comfortably in the UAE?
Your ideal salary depends on your lifestyle, family size, and the emirate you choose. Some expats manage with 4,000 AED per month by sharing accommodation and keeping expenses low, while families in major cities may need 20,000 AED or more to cover rent, health insurance, and daily costs.
How much is the overall cost of living in the UAE?
Living expenses vary widely depending on location and personal spending habits. Housing in Abu Dhabi and Dubai is generally pricier than in Sharjah or Ajman. On top of rent, consider costs like groceries, transportation, utilities, health insurance, and school fees if you have children. A single person can expect to spend around 1,000 AED per month on essentials, excluding rent. Each emirate caters to different budgets, so exploring your options will help you find the best fit.