At Remitly, we understand that figuring out and adjusting to the cost of living in a new country can be tricky at first. From rent to your weekly grocery shop, knowing what to expect can help you settle in quicker.
This guide will cover the average living costs in the United Arab Emirates, practical budgeting tips, and how expenses can vary based on your lifestyle. Whether you’re moving solo, with family, or planning to share a home with friends, we’ve got insights to help you make the most of your money and enjoy everything the UAE has to offer.
Smart ways to save money as an expat
Moving to the UAE is a big step, so structured planning will make the transition a lot easier in the long term. With a few smart strategies, you can manage your expenses, save where it counts, and be on your way to a stable financial life in the UAE.
Start with a clear picture of your finances
The best way to take control of your budget is to understand where your money is coming from and where it’s going. Start by making a list of all your income sources, including your salary, freelance work, or investments. Knowing exactly what you earn each month will help you plan realistically.
Next, break down your essential costs, such as rent, health insurance, groceries, and transport. Once you have a clear idea of these expenses, set a savings goal that works for you. Even a small amount saved each month can add up over time. A well-structured budget will help you stay on track and avoid unnecessary financial stress in a city as fast-paced as Dubai.
Keep an eye on your spending
In cities like Abu Dhabi or Dubai, costs can be higher than you might be used to. Using a budgeting app or a simple spreadsheet can help you keep track of every dirham you spend.
By tracking your spending like this, you’ll notice if you’re consistently spending more than you planned in certain areas like eating out, shopping, or entertainment, and see where you can make small adjustments.
Consider setting a limit for non-essential expenses while still allowing yourself to enjoy social activities. A balanced budget includes both necessities and some extra for exploring and making the most of your time in the UAE.
Take advantage of discounts and deals
The UAE has a reputation for being expensive, but there are plenty of ways to save if you know where to look. Many supermarkets offer loyalty programs that provide discounts on selected items, helping you cut down on grocery costs over time. Shopping around and comparing prices can also make a big difference in your monthly spending.
Entertainment and dining don’t have to break the bank either. Apps like Groupon offer great deals on restaurants, activities, and weekend getaways. Public transport is another affordable option, with the metro and bus systems being both cost-effective and convenient, especially in busy areas like downtown Dubai.
How much does it cost to live in Dubai?
Dubai is known for its luxury and fast-paced lifestyle, but the cost of living can vary depending on where you live, how you commute, and your daily habits.
Housing costs in Dubai
Rent is often the biggest expense for expats in Dubai, and prices can vary a great deal based on location and property type:
- A one-bedroom apartment in popular areas like Dubai Marina, Jumeirah, and Downtown Dubai the average will cost between 71,000–150,000 AED rent per year. This is lower in family areas like Dubai Hills, where you can expect to pay around 81,000 AED per year.
- For a two-bedroom apartment, expect to pay an average of 138,000–248,000 AED per year depending on the neighbourhood. In Dubai Hills and Jumeirah Village, this will be around 93,000–137,000 AED per year.
- If you have a large family or a bigger budget, a villa with more bedrooms and community amenities can be around 170,000 AED per year for a three-bedroom and around 349,000 AED per year for a five-bedroom place in a neighbourhood like Umm Suqeim.
Although you might be used to paying for rent monthly in other locations, in Dubai it’s also common to make one payment annually, or two to four payments a year. Remember to ask your potential landlord which payment method they prefer.
Food and dining costs in Dubai
Groceries and eating out are another part of your daily life you’ll need to budget for. These costs will depend on whether you prefer home-cooked meals or eating at restaurants.
- Groceries: A single person shopping on a budget spends an average of 1,000 AED per month on groceries, while a family will probably spend around 4,000 AED.
- Eating out: Dubai has everything from street food to luxury restaurants. While high-end meals can cost over 250 AED per person, affordable and mid-range restaurants offer meals for 60–150 AED.
- Meal deals and lunch specials: Many restaurants, especially in business districts, offer weekday discounts and special lunch deals.
Utility bills in Dubai
In Dubai, electricity and water are provided exclusively by DEWA (Dubai Electricity and Water Authority), and the costs can vary depending on your home size and usage. There are no private suppliers competing with the official authority as there are in many countries.
- Electricity and water: The average cost of electricity is 200–400 AED per month, and water will be around 50–100 AED per month. This will depend on the size of your home.
- Air conditioning: Since Dubai is hot most of the year, AC usage is a big part of utility bills, especially in larger homes. This tends to be between 150–300 AED per month.
- Internet and phone: Costs for TV and internet will be around 500–1,200 AED per month, while a mobile phone plan will be anywhere from 125 to 500 AED per month.
Getting around Dubai
Dubai has plentiful transport options, from well-developed public transit to private cars. Your commuting costs will depend as much on your lifestyle as where you live, because there are options to pay more for a Gold Card to use more luxurious public transport.
- Public transportation: The metro, buses, and trams are modern, affordable, and well-maintained. A Nol card is used for payments, and monthly passes start from 140 AED per month for one of the city’s seven designated zones.
- Taxis: Taxis are widely available but this can get expensive if you’re using them regularly.
- Ride-hailing apps: Apps like Careem and Uber provide a convenient alternative to the official taxis, often with discount codes and promotions.
- Personal car: If you live outside the city centre, owning a car might be practical, but remember to budget for fuel, insurance, registration, and parking. Petrol prices are lower than in many countries, but costs can add up.
Budgeting strategies for life in the UAE
Budgeting is both a skill and a habit. The key is to find a balance between enjoying your new lifestyle and making sure you have long-term financial stability.
Plan for healthcare costs
Most immigrants to Dubai choose to pay for private health insurance. Your costs will depend on factors like your employer providing coverage—which they almost certainly will for resident expats—your provider, and whether you have dependents. Keep in mind that this means you won’t be able to use public health services so be sure you know where your nearest private hospital is.
Consider your children’s education
If you’re moving to the UAE with children, schooling will be a big part of your budget. Public schools are mainly for Emirati nationals, though some do admit expat students under specific conditions at a lower cost. Most expat families choose private or international schools, which offer curricula like British, American, or International Baccalaureate.
Education costs often increase each year and associated expenses like uniforms, books, and extracurricular activities can also add up. Including these in your financial plan early on—and allowing for inflation from the start—will ensure that your child’s education fits within your budget without unexpected costs catching you off guard.
Factor in domestic help and lifestyle choices
Though it’s not for everyone, many expat families in the UAE choose to hire domestic help, and costs will vary depending on whether you need full-time or part-time assistance.
A live-in nanny or housekeeper typically costs 2,000–3,000 AED per month, plus sponsorship fees. Whereas a live-out housekeeper will usually be around 3,000–6,000 AED per month. You’ll also need to consider initial deposits.
Beyond household expenses, you’ll also have to consider lifestyle choices like gym memberships, social clubs, and travel. While these activities can enhance your experience in the UAE, it can be all too easy with contactless payments to lose track of what you’re spending. Keeping a close eye on discretionary spending ensures you can enjoy life without stretching your budget too thinly.
Managing your finances in Dubai
Dubai is a city of opportunity, but managing your money wisely is key to enjoying everything it has to offer without financial stress.
Open a local bank account
Most banks will ask for your residency visa, Emirates ID (if applicable), and proof of address and employment. Once your account is set up, you can handle direct deposits, pay utility bills, and make digital transfers without incurring extra fees on currency conversions.
Using online tools to manage costs
Finding the right home and managing expenses is much simpler with online resources. Websites like Bayut let you browse apartment and villa rentals by price, location, and size, helping you compare options before committing.
In an era where prices can change rapidly, community forums can also be useful for checking real-world costs on internet plans, groceries, and schooling. If you’re looking for the best telecom deal, comparing packages from providers like Etisalat and Du ensures you get the best value for what you’re after.
Plan for long-term savings and investments
Once you’re comfortable with your monthly expenses, it’s a good idea to think about long-term savings. Many UAE banks offer high-interest savings accounts and investment tools to help expats grow their wealth over time. Even if you don’t plan on staying in the UAE permanently, setting up a retirement fund or pension can help secure your financial future.
Abu Dhabi and other Emirates
While Dubai often takes centre stage, the UAE is much more than just one city. Abu Dhabi, the capital, offers a different pace of life, and other emirates like Sharjah, Ras Al Khaimah, and Ajman provide unique lifestyles that may better suit your budget or career path. So don’t rule these other Emirates out as you look for the right balance between affordability, convenience, and community.
Living in Abu Dhabi
Abu Dhabi is home to thriving business hubs, cultural landmarks, and a growing expat community. It’s known for being a bit more relaxed than Dubai, but housing in sought-after areas like Al Reem Island or Saadiyat Island can be just as pricey as prime Dubai neighbourhoods.
When it comes to entertainment, Abu Dhabi has plenty to offer, from the excitement of Yas Island to the world-class Louvre Abu Dhabi. Public transport isn’t as extensive as Dubai’s metro system, but there are reliable bus networks, and just like in Dubai, taxis and ride-sharing apps are widely available.
Exploring alternative Emirates for lower costs
If you’re open to a more budget-friendly lifestyle, some of the smaller emirates might be worth exploring.
- Sharjah: Lively cultural scene and more affordable rent, though commuting to Dubai for work can take longer.
- Ras Al Khaimah: A favourite for nature lovers, offering stunning mountain views and a quieter pace of life.
- Ajman and Umm Al Quwain: These both have lower housing costs, but job opportunities may be more limited.
Managing daily costs across different emirates
Every emirate has its own cost variations, but some things remain fairly consistent. Grocery prices are similar across the UAE, though speciality items may be harder to find in smaller states.
Transport expenses might shift, depending on whether you’ll need public transit in Dubai or need a car in a less connected area. Also, lifestyle costs may vary depending on factors like how often you eat out. Finding the right balance between savings and convenience will help you settle in comfortably, no matter where you choose to live.
FAQs
How much does it cost to live in Dubai as an expat?
The cost of living in Dubai depends on factors like housing, lifestyle, and the size of your family. Rent is usually the biggest expense, with a one-bedroom apartment ranging from 71,000–150,000 AED per year. Monthly grocery costs for a single person can be 1,000 AED while dining out can be 50–100 AED per head at local restaurants. Transportation costs vary, with monthly metro passes between 140 and 600 AED, while taxis and ride-hailing apps are convenient but more expensive for daily use.
Is Abu Dhabi cheaper than Dubai?
It depends on where you live. In some areas, like Al Reem Island or Saadiyat Island, rent prices can be just as high as in Dubai’s top neighbourhoods. However, Abu Dhabi generally offers a slightly more relaxed lifestyle with fewer tourist-driven expenses. Public transport is not as developed as Dubai’s metro system, so many residents rely on taxis or personal cars.
Which of the Emirates is the most affordable to live in?
If you’re looking for lower housing costs, Sharjah, Ajman, and Ras Al Khaimah offer more budget-friendly options compared to Dubai and Abu Dhabi. Sharjah is a popular choice for commuters working in Dubai, though the daily travel time can be long. Ajman and Umm Al Quwain have lower rent prices, but job opportunities may be more limited. Ras Al Khaimah is great for those who prefer a quieter lifestyle with access to nature.