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The cost of living in Dubai: A guide

Dubai remains an attractive destination for many international workers. A LinkedIn study2 found that the United Arab Emirates (UAE) — and in particular the city of Dubai — ranked as the world’s most popular overseas destination for those looking for work.

 

But before moving to any country it is important to paint a picture of what your life will be like, and working out the cost of living should be the first port of call. What you will earn is important, but what those wages buy you is arguably more important: a £50,000-per-year salary buys far more in Hanoi than it does in London. For many people, Dubai is an expensive destination.

 

This article will help you understand the relative cost of various important products and services. It will also highlight aspects of life in the emirate which you may not have considered and will impact how far your salary goes.

 

 

What is the basic salary in Dubai?


Dubai attracts workers from all around the world for a broad range of roles, from bankers to builders. As such, salaries can vary wildly. There are extremely high-paying jobs in Dubai, for example in booming industries such as technology and hospitality. Conversely, there are also extremely low-paying jobs. A 2012 report found that manufacturing wages in the UAE were among the lowest in the entire world3.

 

The United Arab Emirates (UAE) does not have a minimum wage in place. However, in 2013, the government issued the following guidance:

 

Minimum monthly salary guidance4:

 

 Personnel   AED   USD   GBP 
 University graduates  12,000   $3,267   £2,525 
 Skilled technicians  7,000  $1,905  £1,473
 Skilled labourers  5,000  $1,361  £1,052

Figures correct at 1 Nov 2019

 

How expensive is it to live in Dubai?


Dubai was ranked as the 21st most expensive city to live in in 20195, with cities such as Victoria, New York, Tokyo and Hong Kong being more expensive. However, the city is pricier than London, Moscow and Chicago.

 

Expensive is a relative term — in this case, relative to salary. How expensive you find it will depend on where you’re from and how much you earn.

 

Is rent expensive in Dubai?


On average, rent in Dubai is around 26.99% cheaper, restaurants are 25.97% cheaper and groceries are 27.25% cheaper when compared to Chicago6. Public transport is also cheaper7, and the unemployment rate is lower.

 

However, the average salary in Chicago is greater than Dubai, so you may have more income to spend on the pricier food and rent.

 

Cheapest rent in Dubai

We have checked a number of apartment rental websites to look for the cheapest rents:

 

    1 bedroom  2 bedrooms  3 bedrooms
 Dubai Dubizzle  AED 45,000   AED 75,000   AED 80,000 
 propertyfinder.ae  AED 19,000  AED 36,000  AED 58,000
 Bayut.com10  AED 24,000  AED 24,000  AED 50,000

Data collected on Nov 1 2019

 

The average cost of an apartment in Dubai per neighbourhood

Maybe you want to know the average cost11 of rent per year for an apartment in different neighbourhoods of the emirate.

 

 Neighbourhood  Price (per year)
 Al Barari  AED 165,000
 Al Barsha  AED 55,000
 Business Bay  AED 70,000
 Emirates Hills  AED 100,000
 Deira  AED 54,000
 Dubai Marina  AED 78,000
 Dubai Sports City   AED 45,000
 Jumeirah Beach Residence   AED 85,000
 Jumeirah Lake Towers  AED 65,000
 Mirdif  AED 58,473
 Palm Jumeirah  AED 110,000

 

Dubai house prices


In late 2019, it was reported that “Dubai’s housing market remains ‘oversupplied’ despite the drop in prices over the last few years — real prices have fallen by almost 35% since mid-2014.”12

 

In mid-2019, an average Dubai house cost13 AED 2.46 million ($670,000, £517,752). The lowest end of the market bottoms out at around $168,000/£130,000 for a two-bed flat, with mid-range options of around $388,000/£300,000 – with choices reaching more than $647,000/£500,000.

 

What is the average income in Dubai?


The table below mentions the average monthly salaries for various job categories in Dubai, according to The Middle East Salary Survey 2019.

 

Sector or industry

AED

USD

GBP

Finance and accounting

Finance Director

 60,000 

 16,335 

 12,500 

Finance Analyst/Associate

17,500

4,764

3,646

Assistant Accountant

12,000

3,267

2,500

Junior Accountant

10,000

2,722

2,083

Tax Manager

32,500

8,848

6,771

Digital

Digital Marketing Manager

29,000

7,895

6,042

Digital Art Director

24,000

6,534

5,000

3D Designer

21,500

5,853

4,479

eCommerce Manager

35,000

9,528

7,292

Technology

Head of IT

42,500

11,570

8,854

Security Analyst

17,500

4,764

3,646

IT Project Manager

30,000

8,167

6,250

Oil and Gas

Health and Safety Manager

38,000

10,345

7,917

Mechanical Manager

32,000

8,712

6,667

Project Controls/Project Management

40,000

10,890

8,334

Human Resources

HR Manager

28,000

7,623

5,834

HR Officer

20,000

5,445

4,167

Learning & Development/Training Manager

35,000

9,528

7,292

Talent Acquisition Manager

30,000

8,167

6,250

Legal

(In House) Legal Counsel

45,000

12,251

9,375

(In House) Junior Counsel

24,000

6,534

5,000

(Private Practice) Senior Associate

55,000

14,973

11,459

(Private Practice) Paralegal

25,000

6,806

5,208

(Private Practice) Legal Secretary

22,000

5,989

4,583

Retail

Sales Manager

26,000

7,078

5,417

Retail/Area Manager 

27,000

7,351

5,625

PR Manager 

30,000

8,167

6,250

Brand Manager

28,000

7,623

5,834

Merchandise Manager/Buying Manager

30,000

8,167

6,250

Junior Merchandiser/Buyer

12,000

3,267

2,500

Sales and Marketing (Consumer)

Head of Sales/Sales Director

55,000

14,973

11,459

Key Account Executive

19,000

5,173

3,958

Sales and Marketing (Business to Business)

Regional Sales Director

60,000

16,335

12,500

Business Development Manager

35,000

9,528

7,292

Project Sales Manager

30,000

8,167

6,250

Manager – Sales Analytics

35,000

9,528

7,292

Marketing Research

20,000

5,445

4,167

 

What are Dubai food prices like?


When assessing what food costs in any country, a good rule is that local food will be cheaper, i.e. food that’s produced or grown there. If food has to be imported it will be more expensive. Access is also a key factor — for example, food on smaller islands tends to be more expensive.

 

Some key facts:

  • Restaurants can be cheap, but alcohol and coffee are expensive
  • Eating out can be expensive compared to the rest of the Middle East14, with Dubai being the second most expensive city in the region after Tel Aviv.

 

Gasoline price in Dubai


Cost per litre:

 

in AED

in USD

in GBP

Super 98

2.20

$0.60

£0.46

Special 95

2.09

$0.57

£0.44

Diesel 

2.38

$0.65

£0.50

Figures correct at Nov 1 201915

 

How does this compare to the US and UK?

  • Petrol prices in the UK can be more than double the UAE prices (£1.27/$1.64 per litre of petrol and £1.31/$1.70 per litre of diesel at Nov 201916)
  • Petrol prices in the US are also more expensive, but cheaper than the UK ($0.78/£0.60 per litre at Nov 201917).

 

The cost of health care in Dubai


A key living expense is health insurance. For American expats, and those coming from countries without national health systems, this is often already front of mind. For those from countries with socialised medicine or national health/insurance systems, it may not be.

 

 

In Dubai, all migrants must legally have health insurance, but this is provided by an employer. Many companies include health insurance cover as part of a salary package; however, this may only constitute basic cover and an additional international health insurance policy may be required to fully cover the needs of you and/or your family.

 

What to consider when you move


Dubai is the 21st most expensive city in the world. However, as the 14th best paid city across the globe18, these prices are relative.

 

If you’re planning to relocate, you will have to consider prices that you may not elsewhere. If you’re from the US, paying for health care insurance won’t come as a shock — this probably won’t be the same if you’re from the UK. When planning your relocation, don’t forget any one-off costs you may have: for example, buying a car.

 

SOURCE: Currency data provided by Morningstar for Currency and Coinbase for Cryptocurrency

Aetna® is a trademark of Aetna Inc. and is protected throughout the world by trademark registrations and treaties.

 

Additional sources:

https://www.emirates247.com/business/uae-manufacturing-workers-wages-among-lowest-in-the-world-2012-01-23-1.438932
https://www.cityam.com/linkedin-top-20-countries-were-professionals-are-moving-work/
https://www.emirates247.com/business/uae-manufacturing-workers-wages-among-lowest-in-the-world-2012-01-23-1.438932
https://wise.com/gb/blog/minimum-wage-guide-dubai
https://www.me.mercer.com/newsroom/mercers-annual-cost-of-living-survey-reveals-higher-cost-of-living-as-uae-currency-performs-strong-on-the-back-of-usd.html
https://moverdb.com/moving-to-chicago/
https://versus.com/en/chicago-vs-dubai-city
https://dubai.dubizzle.com/en/property-for-rent/residential/apartmentflat/?sort=lowest
https://www.propertyfinder.ae/
10 https://www.bayut.com/to-rent/apartments/dubai/?property_types=4&location_ids=5002&ad=1&awpf=tko&awc=29&awag=18362&awk=%2Bdubai%20%2Brent%20%2Bapartment&awad=303347956463&awn=g&awd=c&awdm=&awap=1t2&awce=&awadp1=&awadp2=&awpc=&clksrc=ad&gclid=EAIaIQobChMIk8DY-_rG5QIViLbtCh30AgwwEAAYAiAAEgLlx_D_BwE
11 https://www.propertyfinder.ae/
12 https://gulfbusiness.com/dubais-housing-market-oversupplied-despite-drop-prices-ubs/
13 https://www.arabianbusiness.com/news/423969-revealed-average-dubai-house-price-falls-to-670000
0ce59dfd1f90/Michael_Page_2019_Middle_East_Salary_Survey_LOW_RES.pdf
14 https://www.me.mercer.com/newsroom/mercers-annual-cost-of-living-survey-reveals-higher-cost-of-living-as-uae-currency-performs-strong-on-the-back-of-usd.html
15 https://gulfnews.com/uae/latest-uae-fuel-prices-november-2019-1.1541503824209
16 https://www.confused.com/on-the-road/petrol-prices
17 https://www.globalpetrolprices.com/gasoline_prices/
18 https://www.dbresearch.com/PROD/RPS_EN-PROD/PROD0000000000494405/Mapping_the_world%27s_prices_2019.pdf

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