2024: Cost of Living in Dubai, United Arab Emirates

Dubai: An attractive city despite high cost of living

Dubai continues to flourish across various domains, but alongside its prosperity, the cost of living has seen an increase. Reports suggest this rise began in 2023, yet it remains notably lower than in other prominent business centers such as London, Singapore, and Hong Kong. This positions Dubai as the top choice for expatriates in 2024.

Housing in Dubai

Like all major cities, housing costs in Dubai vary based on location, size, and amenities. Rental prices for villas and apartments range from moderate to extremely high. Areas like Dubai Marina, Arabian Ranches, and Downtown Dubai are particularly costly and highly sought after by expatriates, including the French community.

On average, a one-bedroom apartment in the city center costs between 7,000 and 10,000 AED per month. A two-bedroom apartment ranges from 9,000 to 15,000 AED per month, while a three-bedroom apartment or villa can cost between 15,000 and 30,000 AED per month.

Various applications such as Dubizzle, Bayut, and Property Finder make finding housing easier for expatriates by allowing them to filter options by neighborhood and budget.

Utilities in the UAE

Utility bills in Dubai include electricity and water, managed by the Dubai Electricity and Water Authority (DEWA), as well as TV, home internet, and mobile phone packages.

DEWA bills vary seasonally, with summer months typically being more expensive due to increased air conditioning usage. Additional charges may apply if you have a private pool and garden. Generally, the DEWA bill for a one-bedroom apartment ranges between 400 and 600 AED per month, depending on consumption.

Note that a municipality fee, equivalent to 5% of your annual rent spread over 12 months, is added to your monthly DEWA bill. Thus, higher rents incur higher municipal fees.

TV and internet packages, mainly provided by Etisalat and Du, cost between 300 and 400 AED per month for basic plans, while premium packages can reach around 500 AED monthly.

Mobile phone plans vary between 200 and 500 AED per month, depending on data usage and selected options.

Cost of Living Essentials in Dubai

Dubai offers diverse cuisine options to suit every palate. Fast food typically costs between 20 and 50 AED per meal, while dining at restaurants ranges from 100 AED upwards.

Monthly grocery expenses vary based on household size, dietary preferences, and lifestyle:

Basic groceries (bread, rice, eggs, etc.): 200 to 400 AED
Fresh fruits and vegetables: 300 to 600 AED
Dairy products (milk, cheese, yogurt): 200 to 400 AED
Meat and poultry: 400 to 800 AED based on consumption
Other items (snacks, beverages, etc.): 300 to 500 AED

In summary, a moderate monthly grocery budget ranges between 1,400 and 2,700 AED.

Healthcare Costs in Dubai

The healthcare system in the UAE is renowned for its high standards and modern infrastructure, offering both public and private services with a wide range of quality medical care options essential for life in the United Arab Emirates. Residents have access to affordable public healthcare services, but many opt for private healthcare due to the speed and variety of available treatments. All residents are required to have health insurance, the cost of which varies depending on the level of coverage chosen. Employers are responsible for providing health insurance to employees.

On average, health insurance premiums range between 700 and 1,500 AED per month. Medical consultations, hospitalizations, and medications may be partially or fully covered by this insurance, making healthcare more accessible despite potentially high costs in the private sector.

Transportation in Dubai

Transportation options in Dubai are diverse. The bus network covers almost the entire city and is payable with a NOL card. Dubai Metro, with its red and green lines, provides extensive coverage throughout the city. Taxis, recognizable by their colorful roofs, are also widely available and can be booked via apps like Careem or Uber. The starting fare is 12 AED, with an additional cost of 1.97 AED per kilometer.

Owning a car is often essential for flexibility, especially for daily commuting and leisure. To legally drive in Dubai, you must register your vehicle with the Roads and Transport Authority (RTA), with registration fees ranging from 400 to 600 AED.

For those who prefer not to own a car long-term, Dubai offers several car rental agencies catering to various budgets and preferences.

Setting Up a Business in the UAE

Dubai has become a favored destination for expatriates, offering both affordable living and numerous professional opportunities. For those considering relocation, here’s what you need to know about setting up a business in Dubai.

Merritt Middle East has been operating in the UAE since 2009, providing support services for company formation and residency visas. Within their network, they include Relocation.ae, a platform assisting individuals in settling in the UAE, and Ares Accounting, an accounting firm handling local regulatory compliance.

The best part? You don’t need to be physically present in Dubai to set up your business!