Dubai is beckoning people from all over the globe with the allure of its contemporary lifestyle, awe-inspiring architecture, thriving nightlife, and extravagant shopping malls. Whether for better job prospects, tourism, or business, people flock to this Arabian jewel like a moth to a flame. An ex-pat population of approximately 85% proudly calls this Emirati gem their home, thanks to the safe and secure environment it offers the residents.
Nonetheless, Dubai is also known for its expensive standard of living as compared to Abu Dhabi, Sharjah, and other prominent cities in the Middle East. While people happily apply for a Dubai visa, reality kicks in only once they move to the city and get a taste of the lavish lifestyle. But don’t fret, as it is very feasible to live a comfortable lifestyle in the city without burning a hole in your pocket. This guide provides a fair idea of managing your monthly budget in the city of gold.
About the Cost of Living in Dubai
Before we dive right into the breakdown of each expense constituting the cost of living, let’s know a little about the local currency. The official currency of the UAE is the dirham denoted, as AED or Dhs. One AED is equal to approximately 0.27 USD and 0.26 Euro.
But the one unique feature about Dubai or the UAE is that the average monthly salary of an individual is higher than that of its western counterparts, and the UAE is also a tax-free country. It means that whatever income an individual makes in a month is completely available for them to spend.
Overview of the typical monthly expenses in a household
In order to understand the different expenses in a month, we have broken them down into different categories.
Housing, Rental & Utilities
The housing, rental, and utilities costs in Dubai will significantly vary depending on the area where you are residing. The costs will be higher in the city center and comparatively less in the outskirts.
The expat communities are mostly concentrated around Jumeirah Lakes Towers (JLT), Dubai Marina, Jumeirah Beach Residence (JBR), and Dubai’s Old Town due to its easy accessibility and modern amenities. The monthly rental prices for all the listed areas are around AED 6,200 for a one-bedroom apartment.
The average rental for an apartment in Dubai is as follows:
Groceries and Food
What you spend on this category depends to a great extent on your food preferences lifestyle, and whether you prefer cooking your own meals or eating out. Most supermarkets have a wide range of products including local and imported goods. So, your grocery bill will largely depend on your dietary habits. Also, economical supermarkets like Lulu Hypermarket, Carrefour, and Union Cooperative have many offers and discounts running on day-to-day products, making it easier to stock your groceries.
Grocery costs vary region by region in the UAE. Dubai is slightly more expensive as compared to Sharjah or Abu Dhabi. A food basket usually contains daily essential items such as rice, a liter of milk, eggs, apples, chicken filets, and white bread.
Utilities
Utilities like water, electricity, phone bills, internet and TV packages, etc., are integral to your monthly expenses. The monthly costs depend on usage and accommodation size. But on average, the internet and TV package cost AED 320-380 a month. A basic mobile monthly plan is approximately AED 125 and can go up to AED 550 for premium plans. The combined cost of utilities for electricity, water, and garbage may be around AED 700-900 a month.
Transport
You will commute to work, school, college, or go around the city for recreation. This cost largely depends on the number of days you commute, the duration, and the distance to the place.
The fuel rates in Dubai are lower, so if you are traveling by your car, it is still economical. But this will also differ based on your car model, the distance, the insurance, and the servicing costs.
Medical Care
It is mandatory for residents to have health and medical insurance in Dubai, and there is no compromising on this. Many companies sponsor medical insurance for the employee and his or her family as well. If the company doesn’t cover your health insurance, then you need to purchase a plan for yourself and your family.
If you opt for a housemaid, you must provide them with health insurance under the Essential Benefits Plan. Their monthly salary may be between AED 1,500 and AED 5,000.
Education/Schooling
If you are a family with little ones, education is one of the most essential criteria of your life. Dubai has schools offering various curricula, the most popular being American, British, Indian, and IB.
Many Indian families apply for a Dubai visa from India and settle in the UAE. If you are an Indian family who wants to enroll your kids in an Indian school, the fee is much less compared to the Western curriculum and ranges between AED 3000 and AED 5,500 monthly.
Education costs vary from preschool to higher education and the school or university you have opted for your field of study. The language used for all forms of education is English, which makes it easier for children across all global regions to adapt.
Kindergartens or primary education for children are available from 45 days to 5-year kids.
School education
Private bodies mostly drive school education, and the tuition fees vary for each school. Public schools provide free education to UAE citizens. Non-UAE nationals must pay a nominal fee for public school admissions.
Higher education
UAE has a great higher education system with three top universities – United Arab Emirates University in Al Ain, Khalifa University in Abu Dhabi, and American University of Sharjah, on the list of the top 400 best universities worldwide. The degrees offered in these universities are internally recognized. Many foreign universities also have branches set in the UAE.
Entertainment
Dubai has myriad entertainment options: watching movies, visiting restaurants with friends, indulging in retail therapy, or participating in adventure sports. There are numerous spectacular things to do in Dubai for singles, couples, and families.
The annual cost of a gym membership is approximately 2400-3000, a single cinema ticket costs around AED 40, and having a meal may be between AED 40-50 for budget eateries and AED 400-500 for fine dining or gourmet restaurants.
Conclusion
Before making Dubai their home, considering all the various expenses and making a budget is also essential. To sum up, the approximate cost of living for an individual is around AED 3,500-6,000; for a couple it is AED 5,000-10,000; and for a family of four, it is AED 15,000-25,000.
Frequently Asked Questions(FAQs)
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