What Cost of Living Contributes in Dubai for Expats in 2022?

Undoubtedly, Dubai has gained a strong position in becoming one of the best countries to live in! Its flourished economy and ideal business environment are what attract people from around the globe. Since it is known for its luxury and lavishness, people often wonder about its expensive lifestyle. Especially ex-pats planning to move to Dubai wonder whether they can afford a life in this city.

Living in Dubai can have endless reasons, and here is why this tourist attraction has become a home for many. There is no income tax, plus sales taxes are minimal, making it a tax haven. But that doesn't define it to be affordable or expensive in any sense! The cost of living in Dubai has considerably decreased, based on attracting global talents. Whether you're relocating, retiring, or moving to Dubai, it is fair to have a picture of the cost that will incur to you.

Be it, real estate, finance, tourism, entertainment, and even business for that matter. It is an ideal destination constantly growing, and becoming quite impressive in all aspects. But with all that comes the thought of the living cost! What does it look like? Is it manageable? Can you save more? Let’s have a clear picture of the same to know what’s worth it for you.

Dubai is More than Just a Luxurious City | The Expense Calculator

People are convinced that this city is all about luxury, bling, and glittering life. The gorgeous skyline, nightlight, and adventure, pretty much sum up Dubai life. But, there is more to it than skyscrapers, architecture, and wonderful sights. Dubai from a tourist perspective is different than those living as an ex-pat. The city offers a decent and comforting lifestyle for those who call it their home!

There are necessary expenses that an ex-pat cannot run away from! It is obligatory for survival in Dubai which acts as base expenses you should calculate beforehand. These expenses comprise housing, food, utility, best schooling, healthcare, and transportation, to name a few.

Clearly, despite the favorable tax climate, a lot is contributing to the living expenses. Even though all the additional costs keep on changing based on personal preferences, lifestyle, and the area of the residents.

But these are significant ones, which you need to be prepared for every start of the month. Housing tops the list, considering it takes a huge chunk of your budget, followed by transportation, utilities, and lastly food. With that, monthly expenses are also determined by you being a single person or you with your family!

Transport Costs

Transportation can be divided into public and private, wherein public transport option seems to be cheaper, but traffic jam is one of the bigger issues in it. While talking about private mode, you can pick a new route, and navigate to any corner of the city, but it adds to your expenses. When you live in the UAE, a country known for its oil, the car has to be the king! But, in the current times, petrol prices are shooting higher than usual, but still manageable. Buying a car is a large upfront expense, but there are options for monthly renting, that one can consider.

With all that, the location of your workplace, and your residency matter too. You may be situated close to your workplace, which lessens your cost of transportation. However, if you live far, it adds more to your traveling cost. For public transport, Dubai Metro has to be the best option. There are two lines, the Red and green zone, one of the most advanced rail systems in the world. Traveling through the metro is affordable, especially when you make a monthly/quarterly or yearly pass. It is ideal for you to stay close to your workplace since this will cut your expenses.

Cost of Housing: The Largest Cost

As with anywhere, rent is one of the most important expenses, which also adds to where you're living in this city. If you wish to live in a modern apartment in a skyscraper, tucked in the middle of the city, it will be expensive. If you want to live on a budget, on a room-sharing basis, that will be a smart way to cut the cost and also find decent budget apartments.

The choice is yours, you need to know what your goals are. This city is renowned for its lively community, and amazing neighborhood ideal for not just families but also working professionals. There are distinguishable communities like golfing communities, family-friendly, and even pet-friendly communities, to name a few. If you want to live in a thriving community, there's JBR, and Dubai Marina to brighten up your standard of living. Whereas, if you want to rent a home with affordable options, Al Qusais or Mirdif will have some cut-out rent options, making the living cost much better.

There is plenty of option when it comes to renting a home in this city, from bed space to private room, loft options, studio flats, and more, each has distinctive pricing. Ex-pats can choose whichever option they find convenient and that matches their budget. The key important thing to remember is, how you want your rent to be paid. Some landlords request you to pay monthly, while some deal with a yearly contract. There are apartments furnished, semi-furnished, and unfurnished, each with different pricing, even though they may be located in the same community.

Utilities as an Expense

There are a few things that Dubai wants you to pay, and that is your DEWA bill. DEWA (Dubai Electricity and Water Authority) is one of the most important costs of utility, which has to be paid at the end of the month. For DEWA, the exact amount of payment entirely depends upon your consumption. The contributing factor in your DEWA bill usually includes your home having a central AC or a window AC. Even the consumption level of water acts in adding values to the bill, the more you use water, the more is the bill. DEWA usually costs higher in summer, since AC and water are consumed largely. While in winter, the bill will be manageable.

Utilities largely depend upon your personal choice, but not fully! For example, the type of internet pack you have, or a TV package, your mobile plan, etc. add to the utilities. Internet and TV plans are provided by Etisalat and Du, and the offers keep on changing. The basic package for internet and TV starts from AED 300 and the premium can go up to 1000 or more. With that comes the phone bill, which can go from AED 125 to over AED 500. However, there are various offers, and plans that keep on adding up every month. It all depends upon your level of consumption, at the end of the day.

Health and Wellbeing

Based on the cherished lifestyle, Dubai has also become the best investment-friendly city globally. Attracting not just tourists and ex-pats, but also investors to generate great returns. Healthcare has to be the strongest factor for a cherished lifestyle in Dubai. When it comes to ex-pats, their employer is responsible for taking healthcare insurance for them, and their family. So, if you belong to the ex-pat category, you can rely on the company to take care of you. However, health insurance is a mandatory element when living in Dubai, and there are lots of plans for the lower-income category.

It starts from the most basic plan, called EBP, which is (Essential Benefits Plan), offering decent insurance coverage. The coverage includes surgeries, lab tests, physiotherapy sessions, emergency care, and pregnancy care too. Even though the public healthcare system is quite appealing in Dubai, ex-pats also choose the private healthcare option. This is to get premium care, skip the waiting and get quality treatment any time you want. THe prices for private care may be high, but they are worth it since you get extra attention to your health and well-being.

Additional: Dubai Lifestyle/ Food/ Entertainment

In terms of food, entertainment, adventure, and activities, you may find the city expensive! If you want to head out for a quick dinner, there are a few options that suit every pocket. However, the pricing of the hotel/restaurant depends upon the neighborhood you've to head out for a quick bite. Moreover, alcohol is quite expensive since it majorly targets tourists, and ex-pats, and not locals on the whole.

When you plan to cook food, the grocery expenses add to the list. However, this has to be the best hack for cost-cutting, concerning food. Imported products will be priced higher, so it is always worth buying local fruits, veggies, nuts, and other items. Plus, there are endless grocery stores, and hypermarkets, offering amazing discounts and offers for ex-pats, you get great quality products at the best pricing.

When talking about entertainment, you have a list of options to be entertained, and spend your time on the weekends. From golfing to taking sports membership, gym sessions, or other similar options, the membership prices will vary vividly. Moreover, you can also spend your time as a tourist, lurking around the city, exploring beaches, aquariums, museums, or leisure walks on the corniche.

Come to your Home in Dubai!

If you are looking to start fresh in Dubai, you can expect a decent salary, quality work-life balance, and tax-free living. But, you must also be well prepared with the cost of living that you can incur here. The list above includes almost everything that adds to the cost of expenses of the city, and there's more to it!

Once you've worked out your living cost, the next step is the process of moving here and becoming an ex-pat. Your wages will be a contributing factor to building your standard of living, so the more you earn, the more you save or spend! Your lifestyle and preference reflect on the cost of living, so consider that too.