UAE is widely known for being a great place to work with high standards and living comfort, infrastructural developments and multiculturalism. However, the cost of living in the UAE is slightly higher, contrary to other countries. Multiple factors backed the high living standard of the Emirate; however, the expenses are manageable. 

Let’s take a look at the cost of living in UAE and how you can expect life in this country to be in terms of housing, transportation, food, health and education.

Housing

Accommodation costs are the largest that the residents of the UAE have to face. The prices for accommodation are also highly dependent on the emirate, the neighbourhood, as well as the type of housing that is being rented.

Dubai

Besides, Dubai being the largest and most developed city in UAE in terms of population density, the cost of housing is comparatively higher than in the other emirates. An average one bedroom apartment rent at the city centre costs between AED 5,000 and AED 12,000 while in the outskirts of the city or outskirts of the city it ranges from AED 3,500 to AED 8,000. Apartments and villas or apartments that are bigger are considerably more costly.

Abu Dhabi

Other emirates, mainly the capital city of the UAE – Abu Dhabi, also have comparatively high housing prices, yet it can be slightly lower than in Dubai. Average rent of an apartment is as follows: AED 4,500 to AED 10,000 for one bedroom apartment situated in the city centre.

Other Emirates

Rents are slightly lower in Sharjah, Ajman, Ras Al Khaimah, and Fujairah in comparison with those in Dubai and Abu Dhabi, and the same refers to the housing prices. For instance, a one bedroom apartment in one of the city’s central locations, such as Sharjah could cost between AED 2,500 to AED 6,000 on a monthly basis.

Transportation

Transport cost in UAE is relatively cheap but it depends if one is using public transport and if one owns a car.

Public Transport

Currently, the UAE boasts of a relatively well-developed public transport, especially in the cities of Dubai and Abu Dhabi. A monthly public transport pass in Dubai easily goes for AED300 for mobility in buses, trams and the metro services. Taxis are also easily accessible, although they cost AED 12 for a short trip to go.

Owning a Car

Indeed, there is a high demand for personal cars especially for those living in the outskirts that cannot access public means of transport. The cost of owning a car is the price of the car plus the cost of fuel, insuring the car and servicing the car. Gasoline is relatively comparatively cheaper in the UAE with petrol going for about AED 3. 50 per litre. Car insurance is on average from AED 1,200 to AED 3,000 per year depending on car model and type of insurance.

Food and Dining

Food prices in the UAE may be slightly cheaper or a lot more expensive based upon whether you dine out constantly or if you do most of your cooking yourself.

Groceries

It is evident that the prices of groceries in the UAE are not different from prices of groceries in the western countries. The amount of money that a couple would spend in a week on groceries would be between AED 300 and AED 600 depending on the couple’s diet and shopping frequency. It has also been seen that imported products and organic foods are more costly than the other products.

Dining Out

As a tourist, one can easily get a meal at the UAE since they have almost all classes of eating places; the fast foods, the internet cafes, the street joints, the luxurious restaurants etc. Eating out most often means that one will be parting with anything between AED 50 and AED 150 for a meal at a mid-ranged restaurant. Fast food meals are cheaper and cost about AED 25 to AED 40.

Healthcare

The standard of healthcare in the UAE is very high and this is complimented by both government-owned and private health services.

Public Healthcare

The UAE citizens are eligible for funded health care though the expatriate community mainly depends on private health care. But some employers offer health insurance and this fully covers the services offered in the public hospitals and it is meant for expatriates.

Private Healthcare

There is also private healthcare and most of these health care countries have a good reputation. The costs related to private Health Insurance are highly dependent on the extent of the coverage; this means that for Health Insurance that is fully comprehensive, people are charged fees of between AED 4,000 and AED 15,000 per annum. Many residents need to consult a doctor from time to time and have minor operations thus making health insurance compulsory.

Education

As for child moulding, education is another costly factor which families with children need to incur more so in the UAE.

Public Schools

UAE schools are mainly public schools for the Emirati children but if the expatriate children satisfy some specific conditions they can attend too. It is noteworthy to mention that most public schools are funded by the UAE government and therefore are free for the nation’s citizens.

Private Schools

Majority of expatriate children are enrolled in private international schools that have different curriculums; British, American and International Baccalaureate (IB). Annual fees of private schools for example may be from AED 20000 to AED 100000 depending on the ranking of the school, geographical location and type of curriculum offered.

Utilities and Other Expenses

Utilities: Electricity tariff, water, and cooling charges differ from everyone’s plan and the size of the house. In a one-bedroom apartment one is likely to incur between half a hundred (AED 500) to one thousand (AED 1000). Internet bundles with high-speed connection are normally priced at around AED 300 to AED 500 per month. Prepaid mobile phones with data can be as low as AED 100 optimum up to AED 300 depending on usage and the service provider. Expenses on leisure products like gyms, movies and outings during the weekend are Not cheap. The gym membership could be in the range of AED 200 – AED 500 per month whereas cinema tickets come round AED 35 to AED 50.

Generally, the cost of living in the UAE is not expensive, though when it comes to the expenses, they depend on different factors such as lifestyle, residential area, and individual’s preferences. Even though travelling to cities such as Dubai or Abu Dhabi is even costly, there is a variety of accommodations to choose from that can suit any budget. By discovering housing costs, transportation, food, healthcare and education, you can better manage your personal finances.