2024: The Cost of Living in Dubai, United Arab Emirates

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2024: Le coût de la vie à Dubaï, Émirats Arabes Unis
As Dubai continues to thrive on all fronts, the cost of living has also increased. According to reports, this cost has risen since 2023, but remains significantly lower than that of other popular business hubs such as London, Singapore, and Hong Kong. This positions Dubai as the preferred choice for expatriates in 2024.

Dubai: an attractive city despite its high cost of living

There is no denying that Dubai is one of the most expensive cities in Asia, and the cost of living in the United Arab Emirates can be particularly high. However, it is important to remember that there is no income tax or sales tax, which makes the city attractive. In addition, corporate tax is relatively low at 9%, compared with 20% in Western countries.

Housing in Dubai

As in all major cities, the cost of housing in Dubai varies depending on the location, size, and amenities of the property. Rents for villas and apartments range from moderate to very high. Areas such as Dubai Marina, Arabian Ranches, and Downtown Dubai are particularly expensive and highly popular with expatriates, especially within 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. There are many apps where you can find the housing you need, making the expatriation process easier. These sites, including Dubizzle, Bayut, and Property Finder, can help you find suitable options. With geolocation, these apps allow you to target your search according to neighborhoods and your budget.

Utilities in the United Arab Emirates

Utility bills in Dubai include electricity and water, handled by the Dubai Electricity and Water Authority - DEWA, as well as your TV package, home internet subscription, and mobile plan. The DEWA bill varies depending on the season, with the summer months generally being more expensive due to increased air-conditioning use. If you have a private pool and garden, your bill may increase even further. In general, the DEWA bill for a one-bedroom apartment ranges from 400 to 600 AED per month, depending on consumption. Note that for each property, “municipality” fees equivalent to 5% of your annual rent, spread over 12 months, are added to your monthly DEWA bill. Therefore, the higher your rent, the higher this charge will be. TV and internet packages, mainly provided by Etisalat and Du, cost between 300 and 400 AED per month for an economical package, while a premium package costs around 500 AED per month. Mobile plans range from 200 to 500 AED per month, depending on data usage and the options selected.

What is the budget for food and living in Dubai?

Dubai offers diverse cuisine to satisfy every taste. Fast-food options generally cost between 20 and 50 AED per meal, while a meal at a restaurant costs 100 AED or more. The monthly grocery cost varies depending on household size, dietary preferences, and lifestyle. Here is an approximate estimate:
  • Basic products (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, depending on consumption.
  • Other groceries (snacks, drinks, etc.): 300 to 500 AED.
Overall, a moderate budget for monthly groceries ranges from 1,400 to 2,700 AED.

How much does healthcare cost in Dubai?

The healthcare system in the United Arab Emirates is recognized for its high standards and modern infrastructure. It consists of public and private services, offering a wide range of quality medical care that is important for life in the United Arab Emirates. Residents have access to public healthcare services at affordable rates, but most prefer private care because of its speed and the variety of treatments available. All residents are required to obtain health insurance, the cost of which varies depending on the level of coverage selected. For employees, employers are obligated and responsible for providing health insurance. On average, health insurance premiums range from 700 to 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 varied. The bus network covers almost the entire city, with fares payable using a NOL card. The Dubai Metro, with its red and green lines, provides extensive coverage of the city. Taxis, recognizable by their colored roofs, are also widely available and can be booked through the Careem or Uber app. The starting fare is 12 AED, with an additional cost of 1.97 AED per kilometer. Owning a car is often essential for flexibility, particularly for daily commutes and leisure activities. To drive legally 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 do not want to own a car long-term, Dubai offers several car rental agencies, providing options for all budgets and preferences.

Company formation in the Emirates

Dubai has become a destination of choice for expatriates, offering both an affordable lifestyle and numerous professional opportunities. For those considering relocating, here is what you need to know about setting up a business in Dubai. Merritt Middle East has been present in the Emirates since 2009 and offers support services for company formation and residence visas. Its network includes Relocation.ae, a platform that helps individuals relocate to the Emirates, and Ares Accounting, an accounting firm that handles all aspects of compliance with local regulations. The best part? You do not need to be physically in Dubai to set up your company! Contact us today to discuss your project: support@merritt.group.
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