When relocating across borders, understanding the cost of living can help you make informed decisions about which location best suits your needs, particularly if you’re torn between more than one option.
The United Arab Emirates (UAE) is a popular choice for immigrants, boasting a high quality of life and a warm, dry climate. Understanding the immigration rules and choosing where to settle in the UAE are just some of the things to consider when moving and financial planning. So here’s Remitly’s guide to help you choose between two of the most popular Emirates: Dubai and Abu Dhabi.
Two attractive propositions
Of the seven Emirates that make up the United Arab Emirates, Dubai and Abu Dhabi in particular are expat hubs. Both have pros and cons, so it all comes down to what your personal circumstances call for. How will you know which is right for you?
Both offer high standards of living, modern infrastructure, and strong career opportunities, so there’s a lot to think about.
Cost of living in Dubai vs. Abu Dhabi
If you’re considering relocating to the UAE, the difference between each Emirate’s living expenses might surprise you. The cost of accommodation—both renting or buying—transportation costs, and utilities can vary significantly.
Overall, the cost of living is lower in Abu Dhabi than in Dubai, but that doesn’t mean Abu Dhabi is automatically the right choice for you. There may be other expenses such as childcare or the cost of leisure activities that are important to you, so have to be factored in to provide a well-rounded picture of your needs and how they match up overall between Dubai and Abu Dhabi.
Key considerations:
- Employment opportunities
Dubai has numerous career opportunities across a wide range of private-sector activities in particular.
- Lifestyle preferences
Abu Dhabi may appeal more if you’re looking for a calmer lifestyle, while Dubai caters to people looking for something a bit more dynamic. - Family needs
Dubai and Abu Dhabi have excellent international schools and healthcare. However, Abu Dhabi’s calmer way of life may be more suitable for families.
Comparing housing costs
Housing is one of the biggest decisions to make, of course, and not just in terms of whether you want to be right in the centre of things or a bit further out, where it’s quieter.
If you’re choosing to rent, bear in mind that Dubai’s rental prices are about 45% higher than those in Abu Dhabi at time of writing. While each Emirate offers luxury if you can afford it, more affordable apartments can be found in Abu Dhabi, whether in the city centre or suburban areas like Khalifa City.
In fact, the average monthly rent range for a one-bedroom apartment varies hugely depending on location in both Dubai and Abu Dhabi so this is something that will play a major part of your decision-making process.
Factors to consider when choosing where to rent or buy in Dubai:
- Supply and demand
Dubai is an international business hub, attracting a large number of expats and increasing the demand for housing. - Location
Business districts in Dubai and areas with tourist attractions like the Burj Khalifa nearby tend to have higher prices. - New developments
As demand for more housing grows in Dubai, new developments will likely lead to higher property values.
Transportation expenses
Dubai has an extensive public transportation system that enables residents and tourists alike to navigate the city using taxis, trams, buses, and the metro. Both Abu Dhabi and Dubai offer efficient public transportation options and world-class airports. However, Abu Dhabi’s lack of a metro system—it’s building one which is set to open in 2030—gives Dubai a slight edge at the moment.
You can buy travel cards in Dubai for fixed periods; 7, 30, 90, or 365 days. They’re priced according to the zones you want to travel through, whether you want to use the premium carriages on certain modes of transport, and your age. These are valid on trains, metro, tram, bus, and water transport, but the pricing system is complicated.
As an example, a 30-day all-zone pass for an adult, non-premium, will cost 350 AED.
Abu Dhabi, by comparison, relies more heavily on cars, so keep that in mind if you don’t drive or don’t plan to drive much. On average, fuel across the UAE costs about the same, with 95 Special at 2.61 AED per litre and 91 EPlus at 2.54 AED per litre.
That said, there is public transport in Abu Dhabi. It’s mainly based on buses and ferries right now, but the network is growing.
Like Dubai, Abu Dhabi provides travel cards that provide unlimited travel for fixed times:
Abu Dhabi 30-day pass: 80 AED
Abu Dhabi annual pass: 500 AED
Food and dining costs
If you’re not a skilled cook or your lifestyle means you tend to eat out, the price of dining can significantly impact your monthly expenses. If you have a family, meanwhile, food prices generally will play a larger part in your cost of living calculations, so where you shop can make quite a difference.
Popular supermarket chains like Carrefour, LuLu, and Spinneys can be found across Abu Dhabi and Dubai. When doing your weekly shop, these chains sell quality food that won’t break the bank. However, shops which import most items will have higher prices.
A quick snapshot of average food prices in Abu Dhabi vs Dubai
There are some slight differences in the cost of food between the two Emirates, though Abu Dhabi has lower prices for groceries overall. Here are a few examples for some everyday items at time of writing:
| Grocery Item | Abu Dhabi | Dubai |
| Milk (1 litre) | 7.01 AED | 6.87 AED |
| Eggs (12) | 12.46 AED | 11.54 AED |
| Potatoes (1 kilo) | 4.18 AED | 4.40 AED |
| Chicken fillets (1 kilo) | 28.96 AED | 34.11 AED |
Dining and entertainment:
Local cuisine is delicious, and the difference in price between the two Emirates is minimal; a three-course meal at a mid-range restaurant in Abu Dhabi will cost you about 250 AED against about 270 AED in Dubai. Of course, eating in more luxurious areas such as the Dubai Marina or Palm Jumeirah will up the costs of your meal, but there’s something for most people’s budgets in both places.
That’s not only true of food—finding good shopping in either Emirate will be easy too. Dubai in particular has numerous indoor and outdoor attractions. Trips to the desert, the Marina, and shopping at the Dubai Mall—there’s something for everyone of every age, which is why we’ve mentioned factoring leisure activities into your monthly budget as well.
Utilities and other expenses
Utilities and public resources like healthcare are pretty modern in the Emirates, but there isn’t the kind of open-market competition that you find in some countries.
The Dubai Electricity and Water Authority (DEWA) and Abu Dhabi Distribution Company (ADDC) are the main distributors. Your rates will depend on whether you’ve settled into a large villa or a smaller place in the city centre.
For example, an apartment in Dubai costs between 500 AED and 1,100 AED per month for water and electricity. In Abu Dhabi, the range is 370 AED to 1,000 AED.
Seasons and national holidays can also affect your monthly rates, so bear that in mind when you’re setting up your utilities—your first bill may not reflect the price you’ll pay every month.
Healthcare
In the UAE, health insurance is compulsory. If your employer doesn’t provide it—though they almost certainly will for resident expats—you must shop around yourself for a plan for you and your family.
Understanding the rules around health insurance and who’s supposed to help cover you will help you factor in any extra costs if needed.
Premium monthly plans for an individual can run between 500 AED and 2,000 AED.
Education
As an international hub, private education is a common route for many expats moving to the UAE. In Dubai alone, numerous English-language and international schools cater to a large community of students from all over the world.
If you have children and you’re keen to enroll them in a private institution, prices vary widely. It is, though, going to be expensive because many English-language schools in both Dubai and Abu Dhabi rate as “Very good” or “Outstanding.”
Making a financially informed decision
Ultimately, the choice between Dubai and Abu Dhabi depends on individual preferences, career opportunities, and budget. Dubai suits those seeking a fast-paced lifestyle with a great deal of entertainment and networking options. Abu Dhabi, on the other hand, may appeal more to families and people who prefer a quiet life.
Weighing the pros and cons
- Dubai
-
- Pros: Vibrant nightlife, extensive shopping options, numerous tourist destinations, and a fast-paced lifestyle.
- Cons: Higher cost of living compared to Abu Dhabi, traffic congestion, and higher housing costs.
- Abu Dhabi
-
- Pros: More affordable housing, a family-friendly environment, and a lower cost of living overall compared to Dubai.
- Cons: A quieter lifestyle—fewer entertainment options and a less extensive transportation network.
With so much to think about, we hope this guide will help you plan ahead and avoid any nasty surprises before you make the move. If you:
- Plan a budget that aligns with both your salary and savings.
- Decide between renting and purchasing property.
- Evaluate transportation, food, and daily expenses—whatever’s most important for you.
- Optimise your savings before your move so you can meet your expectations and standards of living
so you know all about the cost of living before you get there, it should make things a bit easier. Whether you plump for Dubai or Abu Dhabi, they both have plenty to offer. Enjoy life in the UAE!
FAQ
Is it cheaper to live in Abu Dhabi than Dubai?
According to the numbers, it’s generally a bit cheaper to live in Abu Dhabi. However, it’s up to you which Emirate will suit you best. Doing a deeper dive into life in Dubai, for instance, may help you make your final decision.
Are salaries higher in Dubai or Abu Dhabi?
While Dubai has a higher salary, both Abu Dhabi and Dubai offer competitive salaries, which is reflected in the cost of living.
What salary do you need to live comfortably in Abu Dhabi?
For a single person, a salary of 15,000–20,000 AED will sufficiently cover costs and allow one person to live comfortably. A family of four would need at least 25,000–35,000 AED to ensure all costs can be covered, and that’s before private education costs are taken into account.