Living in Dubai

Cost of Living in Dubai

If you are relocating to Dubai for working on a new project, or are on a promotional job offer, and if you are required to actually reside and work in Dubai, it is best to gain some rough estimate about cost of living in Dubai.

Dubai currently holds the 89th position overall based on latest cost of living index, as the most expensive place in the world for expatriate living, out of 300 international locations.

Minimum wage is something that differs from other areas, in that there is no minimum wage. You are expected to wheel and deal for your salary. Should you land an interview, be prepared to answer the question of how much you expect to be paid. Set a bottom limit so that you don’t slip under it. Once you’ve landed that job, the three factors that will determine your quality of living are: expense of living, your purchasing power and your lifestyle. Without having a handle on the cost of living in Dubai, knowing how much of a salary you need would be difficult. The basic three determining factors for the cost of living are: transportation, accommodations and of course, food. Let’s take a brief look at each one of these.

Transportation cost in Dubai

Traffic is usually heavy in Dubai, with massive vehicle volume seen in Dubai’s prime locations, particularly the Sheikh Zayed Street, during peak hours. Transportation, no-doubt is an issue to be considered in Dubai, with business centres being located away from residential areas.

If you choose to travel by cab or bus, you can probably travel at Dh.10 to Dh.20 or less daily. Gasoline is quite cheap in Dubai, and therefore travelling by one’s own car is still a good option in Dubai. If you can manage to save around Dh.15,000 to Dh.50,000 for an ordinary second-hand car or even as much as Dh.40,000 to Dh.300,000 you can go for brand-new cars. Owning a car is definitely an advantage in Dubai, as far as cost of living is concerned, as the fuel budget is quite cheap, and owning a car is the fastest, cheapest and simplest mode of transportation.

While saving for a car purchase, even renting a car at an average monthly cost of Dh.1500 to Dh.3000 is an option. But, if you neither own a car nor have a valid driving license, the next choice apart from Dubai bus (could cost Dh.1.00 to Dh.6.00 by bus, metro trip or abra) or taxis (Dh.10 to Dh.100 for short to long trip within Dubai), is car lifts. People who own cars usually transport friends and officemates to and from work.

Dubai ranks 230 out of 300 international locations in terms of cost of transportation for public transport, vehicle costs, vehicle insurance, vehicle fuel and maintenance including hire/purchase/lease of vehicle/ public transport service maintenance, petrol/diesel, and vehicle purchase.

Accommodation cost in Dubai

This is possibly one of the largest single expenditure to be considered, particularly in Dubai, as real estate is a booming business here. The expenses of residential buildings have gone up considerably in recent years, given the surge in businesses, expatriate influx, and increased demand for accommodation. With Dubai facing high demand for accommodation, villas and flats and residing quarters have become a scarce resource, owing to increased demand. Therefore, leasing is a large consideration here.

Flat sharing is a fad here for practical reasons. But this works out only for singles. Further a flat can get pretty much cramped with such an arrangement. A rental-sharing arrangement is good enough, as it helps in coughing up the required payment of deposits and advance rentals, as it is shared between individuals.

However, expatriates with families, or singles who require privacy, and can afford to pay the rental of a flat/villa/apartment, and those entitled to housing allowance, have a range of options to choose from, including studios, single, double, triple bedroom apartments, and villas, depending on the budget allocated. The housing rental vary largely depending on the chosen location, be it Deira, or Bur Dubai or Jumeirah.

House Rental Costs

The housing budget will depend on one’s financial capacity and lifestyle choices. The average rentals (approximate values) are in the following ranges:

• Monthly rental for Apartments (studios) – Dh.2000 to Dh.5000
• Monthly rental for Apartment (single bedroom) – Dh.2500 to Dh.6700
• Monthly rental for Apartment (double bedroom) – Dh.3300 to   Dh.10,000 or even Dh.12,000
• Monthly rental for villa – Dh.6700 to Dh.25,000

Food Cost in Dubai

Food is the least of worries in Dubai. Despite the inflation and bad state of affairs of world’s economy, food has continued to remain inexpensive in Dubai meeting necessities of people of all income levels. Food is a wonderful experience in Dubai, with Dubai housing people across the globe, you can get to enjoy all kinds of exotic dishes, be it Indian Biryani or Italian pasta.

But it could be costly to dine out in Dubai’s premium restaurants. However, the best part is that there are also restaurants that offer food at Dh.35 to Dh.95 per person. The cost of dining in a cheap restaurant without alcohol for a single person will not exceed maximum of Dh.80. In any case, it would be best to enjoy home-cooked food with vegetables on week days and keep eating out for week-end. Dubai also has several cuisines inspired by nations across the world, and so expatriates get to enjoy their favourite meals just as they would in their home countries.

Education Cost in Dubai

Re-locating to Dubai with children of school-going age may prove to be a challenge. The cost of private education is quite high in Dubai, and families with income levels less than Dh.10,000 per month may find their salaries insufficient to meet educational needs, while also meeting demands of a cosmopolitan lifestyle.

It will be good to research few private schools in Dubai before relocation. Further, it is best to be aware that a hike in tuition fee could be expected any time. The directories and profiles of several private schools in Dubai are available online. The schools run by American and British nationals usually have high fees, while few schools operated by Asians are comparatively more affordable.

The Grade School tuition fee usually range from Dh.5000 to Dh.90,000 for a full school year, while the high-end counterpart costs around Dh.100,000. The children will have to learn conversation Arab language for them to communicate with other kids and familiarize with culture of Middle East. Therefore, it may be necessary to hire a part-time tutor, but, there is no standard rate for this, as it depends on one-on-one negotiations between parents and tutors.

However, despite this, the cost of education such as pre-school fees, crèche, high-school and college fee and tertiary study fee in Dubai is still comparatively better in comparison to several other cities, ranking 259 out of 300 international locations in the cost of living (education) index.

Communication Expenses

Communication will not be a major issue in Dubai. Within the Emirates, the calls are either free or have very low toll charge for outside calls. The cost of various communications including home telephone rental, call charges, service provider fee, internet connection, mobile/cellular phone contract, and calls are equally expensive on average, in comparison to other cities, and is ranked 167 out of 300 international locations in the cost of living index. Monthly telephone calls including mobile or landline could range from Dh.100 to Dh.1000 within UAE, depending on usage.

Groceries and Utilities Expenses

The cost of food, non-alcoholic beverages and cleaning material items, including baby consumables, canned foods, baking, baked goods, cleaning products, cheese, dairy, fresh fruits, vegetables, pet food, ready-made meals, snacks, seafood, spices and herbs are expensive in Dubai, in comparison to other cities and ranks 92 out of 300 in cost of living index.

Majority of the goods here are imported from country of manufacture, and costs more than in their home countries, and hence a small amount of Dubai import duty is levied on these goods. Therefore, one may have to shell out 20 to 50 percent more for goods in comparison to buying the same from home country.

As for household costs, water, electricity, household gas, household fuels, residential taxes on house/ flat mortgage, house/flat rental, and local property taxes are more expensive than in other cities, ranking 33 out of 300 in the cost of living index. The average utilities for water and power per month per person are Dh.100 to Dh.500.

Clothing

Cost of clothing and footwear including business suits, casual clothing, children clothing, hats, evening wear, inner wear and accessories are comparatively expensive and has been raked 11 out of 300 in the cost of living index. Clothing is comparable to the west, except that they may be a little cheaper due to Dubai’s tariff and taxation laws.

Healthcare

The cost of healthcare in Dubai is quite high, and is now in the process of establishing a solid healthcare infrastructure. It is the most important focus for Dubai at present, and is hoped to improve and get cheaper in future. Therefore, the cost of living index rates Dubai’s healthcare as 76 out of 300 international locations, with cost of general healthcare, medical and medical insurance, consultation rates, hospital private ward daily rate, non-prescription medicine, private medical insurance, medical aid contributions, all relatively more expensive in comparison to other cities.

Furniture and Appliances

The cost of household equipments, furniture and household appliance, including iron, freezer, fridge, toaster, kettle, light bulbs, television, vacuum cleaner, and washing machine are all quite expensive on an average in comparison to other cities, ranking 175 out of 300 on the index.

Recreation

Wine and dine time and leisure and socializing expenses rank highest next to rents, when it comes to cost of living in Dubai. This is because the Dubai city is designed to make you spend. Professionals go out almost every night after work, and all are busy meeting and networking and they end up dining out frequently as well. Also, cost of books, camera film, cinema ticket, DVD, CDs, sports commodities, and theatre tickets are comparatively more expensive here, as is eating out expenses such as business dinner at a good restaurant, and cost of take away drinks, snacks or fast food. Dubai, being the place for youngsters, is no different from New York or Chicago, when it comes to recreational activities.

Miscellaneous

Miscellaneous costs pertaining to linen, stationary, and general goods and services, including domestic help, linen, dry cleaning, office supplies, postage, newspapers and magazines, are all quite high in Dubai. Also, the cost of personal care products including hair care, cosmetics, sun block, moisturizers, tablets, toothpaste, and shampoo and such products are all equally expensive on an average in comparison to other cities, ranking 128 out of 300 in the cost of living index.

Therefore, if you want to live the Dubai life, while also not sacrificing your financial progress, the best way to do the balancing act is to be well informed about cost of living here, before considering a re-location.

Hopefully this will help set the basis for your adventurous move. Do also note that the costs mentioned in this article are indicative costs; the real costs are dependent on your lifestyle and preferences. Be safe, be healthy and be happy!