Cost of living in Abu Dhabi more than that in Dubai

A new study has revealed that Dubai and Abu Dhabi are among the cheapest cities in the world, owing to declining rentals, tamed inflation figures, and comparatively stronger US dollar.

The 2012 Cost of Living Survey, published twice a year by Economist Intelligence Unit (EIU), indicates that Dubai fell from 78th to 94th position this year, among 140 metropolitan cities surveyed from across the world, indicating a drop of 16 places.

Similarly, Abu Dhabi dropped to No.91, among rankings this year, from 86th position in the previous edition of the EIU study, which also indicates that Abu Dhabi is now more expensive to live in, than Dubai.

According to the survey author, Jon Copestake, the major elements making UAE's biggest cities comparatively cheaper are the dirham’s peg to US dollar, and strict price controls for staples. In other places, these items have been subject to inflation, which has made them more expensive, in comparison to the UAE.

Further, the US dollar has been rather weak over the recent years, and appreciation of other currencies in cities close to the UAE has pushed the relative cost of living downwards in Dubai and Abu Dhabi. Experts in the UAE have attributed the change of rank in the survey, to a more competitive property market.

The Survey involved comparison of prices of more than 400 commodities and goods. Pakistan was the cheapest destination globally, followed by Mumbai, as the second cheapest city, Iran’s Tehran as the third, and New Delhi as the fourth cheapest global city. Zurich has been the world’s most expensive city in the survey.

The EIU Survey is a full service that enables human resources line managers and expatriate executives to compare the cost of living in 140 cities in 93 countries, and calculate fair compensation policies for re-locating employees.

Posted on 21/2/2012

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