Cost of Living in Dubai: A Comprehensive Guide for UK Residents

Dubai, often referred to as the “City of Gold,” is a significant business and financial hub in the United Arab Emirates (UAE), attracting millions of visitors and prospective residents from across the globe. It’s no surprise, then, that the cost of living in Dubai is considerably high compared to other cities in the UAE.

If you’re thinking about visiting or relocating to Dubai, here’s everything you need to know about the average cost of living. We’ll break down the various lifestyle factors influencing expenses in Dubai and provide insights into the local currency to help you budget effectively.

Is It Expensive to Live in Dubai?

Dubai is an expensive city compared to other locations in the UAE. According to Numbeo’s cost of living index, a single person in Dubai needs about 3,700 United Arab Emirates Dirham (AED), or approximately £800 per month, excluding rent. By contrast, living costs in Abu Dhabi average 3,100 AED (around £670) per month, excluding rent, while Ajman is even more affordable at just 2,300 AED (roughly £500) per month, excluding rent.

Dubai is still less expensive than cities like New York, London, and Berlin, so how costly you find it will depend on where you’re coming from. If you’re daunted by the cost of living in Dubai, we’ve included some tips to help you save money on a tight budget.

Factors Affecting the Cost of Living in Dubai

Your cost of living in Dubai will depend on factors like your choice of accommodation, dining habits, entertainment preferences, mode of transport, and more. Let’s break down the primary living expenses to provide an estimate based on your lifestyle.

Housing in Dubai

Both buying and renting property in Dubai is costly due to high demand in the real estate market. According to Numbeo, the price per square foot for an apartment in the city centre is about £280, and around £185 if you’re purchasing outside the city centre.

For rental properties, a one-bedroom apartment in the city centre costs approximately £1,640 per month, while outside the city centre, this drops to about £900. For families or those requiring larger spaces, expect to pay around £2,780 per month for a three-bedroom flat in the city centre, and £1,720 per month outside the city centre.

Food Expenses in Dubai

Food costs vary depending on whether you cook at home or eat out frequently.

Here’s what you can expect to pay for dining out (prices in GBP):

• Meal at an inexpensive restaurant: £8
• Three-course meal for two at a mid-range restaurant: £65
• Fast food (e.g., McDonald’s): £6.50
• Cappuccino: £4
• Soft drink (e.g., Coca-Cola): £0.80

For groceries, typical prices include:

• White rice: £0.80 per 500g
• Eggs: £2.40 per dozen
• Tomatoes: £0.60 per 500g
• Potatoes: £0.80 per kilo
• Milk: £5.50 per 3.8 litres

If you’re new to Dubai’s cuisine, consider trying Machboos, the UAE’s national dish, for a taste of local flavours.

Healthcare in the UAE

Healthcare in Dubai can be a significant expense. Dubai provides universal healthcare for citizens and requires all residents to have health insurance. If you’re in Dubai on an employment visa, your employer must provide health insurance. Lower-salaried employees are covered under the Essential Benefits Plan, which includes affordable care. Copayments are typically 20% and capped at 1,000 AED per year (£215).

Higher earners receive more comprehensive plans through their employers. However, employers are not required to cover your spouse or dependents, so you may need to arrange separate insurance for family members. For expats on self-sponsored visas, like the Golden Visa, private health insurance is mandatory. Golden Visa holders are eligible for Esaad privilege cards, which grant access to exclusive health plans costing between 2,393 AED and 39,857 AED (£515–£8,580) annually.

Transport in Dubai

Transport costs in Dubai (prices in GBP):

• Taxi fares start at £2.50
• Local transport (one-way ticket): £1.35
• Petrol: £0.75 per litre
• New car: £16,000–£24,000

Education in the UAE

For families moving to Dubai, education is another expense to consider. UAE citizens can attend public schools free of charge, but international students must pay fees.

Typical education costs:

• Private kindergarten: Around £620 per child per month
• International primary school: About £9,600 per child per year

Shopping and Entertainment

Additional expenses include utilities, clothing, internet, and leisure activities. Average costs (in GBP):

• Internet (60 Mbps): £80 per month
• Utility bills (electricity, water, etc.): £160 per month
• Gym membership: £60 per month
• Cinema ticket: £10
• Jeans: £48
• Casual dress: £42
• Mid-range shoes: £72

Monthly Salary in Dubai

The cost of living in Dubai is high, but so are average salaries. The average monthly salary in Dubai is around £3,300 after tax. As a major business hub, the city offers plenty of opportunities for high earners and entrepreneurs.