People move out of their home countries in search of better professions and quality of life. In the heat of increasing inflation globally, the UAE has become a very expensive place to live, still, it is the ideal destination for many expatriates. UAE has ranked 4th globally for the quality of life it provides for [ex-pats]( Source)
People move to the UAE for its advanced technology, stable economy, peaceful environment, tall buildings, businesses, and real estate opportunities for expats.
About 8 million people have migrated to the UAE, which accounts for more than 80% of its total population. It is an insane percentage of expats living in UAE, which shows the trust of people in the UAE’s life.
However, before moving to Dubai you should keep in mind your basic expenses. You would need to maintain your expenses concerning your salary. This article is going to target expats who are going to start their lives in the UAE. It will cover the necessities, cost of living, and affordable emirates in the UAE.
What are the basic needs in the UAE?
1.Accommodation/residence/Housing:
if you get a job in the UAE, some companies might offer you accommodation while others would not. You should make it clear to your employer about your accommodation before agreeing to a contract. They usually offer accommodation when the basic salary is 2000ADE or lower.
If they don’t offer any residence, you need not worry, because UAE has many accommodation options for expats.
If you are single you can choose a studio apartment because it is cheaper. It includes an attached bathroom to a large room which contains a bedroom area, kitchen, and living area in one place.
Other options are a 1-2bed room residence which has a separate kitchen, living room, and bathroom. Another option is a villa which has 3-4 bedrooms and other facilities as mentioned in a 1-bedroom apartment. These options are quite expensive and suitable for couples and a family of four
2.Transport:
Again some companies provide it while others don’t. UAE has a very advanced transport system of buses, taxis, and metro stations. These transport options are very affordable for expats. All you have to get is a Nol card (for metro) or a silver travel pass card (for bus) to travel in one or two zones. It has validity from one month to one year
You can also rent or purchase a car, though Fuel prices are relatively low in UAE, but the car is quite expensive to afford when you are not financially strong yet.
3.Utility:
It includes electricity, water, waste collection, and gas services which are not included in the rent of the accommodation. Your utility bills vary depending on how much you use them. Electricity bills increase in summer because AC runs all the time in the sweltering weather of the UAE. You can easily get your utility services through DEWA.
4.Grocery:
It is the basic need that has to be fulfilled multiple times in a week or month. UAE has supermarkets which are also called hypermarkets like Lulu Group International. It contains all kinds of goods including food and electronics to purchase under one roof. However, it is expensive to purchase from supermarkets if your budget is tight. For that, you can purchase from any local market and neighborhood grocery.
Many online platforms are also available with free delivery for your groceries like HeroGo, Spinneys, and Hello Chief. It will also cut your transportation charges.
5.Health insurance:
It’s covered by your employer for you and your family in Dubai and Abu Dhabi.
The public health care has little to no charges for Emirati nationals. While expatriates have to pay charges to get medical care.
Some employers are not bound to provide health insurance for you and your family in emirates like Ajman, Sharjah, Ras Al-Khaimah, Fujairah, and Umm Al-Quwain.
In such a case, you will have to get your health insurance if you don’t have a residence visa.
If your salary is less than 4000AED you can get an essential benefit plan (EBP) for 550-650AED annually.
You will also have to sponsor health insurance for your house help in case you have it.
6.Education:
Again their public educational institutes are free for Emirati nationals but not for expats. You will have to pay for the education of your child more than the UAE nationals. Their private sector school is more expensive than public institutes. Their fee structure also depends upon the grades, location, and premium education facilities.
It depends on your salary and lifestyle which institute you choose. They have many international institutes from America, British, and India. These schools cost between 12,000-45,000AED annually for primary education.
Is it expensive to live in the UAE?
Yes, it is super expensive to live in the UAE, consumer inflation has increased from 0.2-3.6% from 2021 to 2023. Inflation is the result of global tension and inflation after the pandemic.
However, the quality of life that you get in UAE compensates for its cost. Their stable economy, no crime rate, and business opportunities for expatriates make it an ideal place to live.
Their tax-free infrastructure lures more ex-pats to earn endlessly in the UAE
What are the cheap and expensive areas in the UAE?
Abu Dhabi and Dubai are exceptionally expensive to live in the UAE. The most expensive neighborhoods of Dubai are Jumeirah Island, Emirates Hills, Dubai Marina, and Downtown Dubai. The cost of living is very high in these areas, which makes a person with a 5000AED salary impossible to live there. The rents are skyrocketing along with grocery and school fees.
Other emirates of UAE are far less expensive like Ajman, Sharjah, Ras Al Khaimah, Umm Al Quwain, and Fujairah. These are not as fast-forward and advanced as Dubai and Abu Dhabi, but they provide a peaceful living. Here salaries are lower but house rents and other expenses are much less than in Dubai and Abu Dhabi.
These emirates provide a cultured, serene, and slow-paced life. Their transportation is not advanced without metro stations. They only provide bus and taxi services, which makes people laid back.
Cost of Living expenses in different emirates of UAE:
Accommodation:
- Abu Dhabi: it costs 5,542.75 AED – 11,532AED to rent a 1-3 bedroom apartment in the main city where luxuries are easily accessible. The same quality apartment would cost you 4,390.00 AED to 8,100.63 AED outside the city
- Dubai: it costs 7,229.1 AED – 14,333.92AED to rent a 1-3 bedroom apartment in the main city per month. Dubai is more expensive for its rents than other Emirates. The same quality apartment would cost you 4,161.95 AED to 8,840.24 AED outside the city.
- Sharjah: it costs 2,933.53 AED –4,938.65 AED to rent a 1-3 bedroom apartment in the main city. The same quality apartment would cost you 2,746.52 AED to 3,707.24 AED outside the city.
- Ajman: it costs 2,233.33AED – 3,500.00AED to rent a 1-3 bedroom apartment in the main city. The same quality apartment would cost you 1,478.57 AED to 2,333.75 AED outside the city.
Transport
- Abu Dhabi: taxi fare starts from 12AED and goes 2AED per km, while a monthly transportation pass costs around 80AED.
- Dubai: taxi fare starts from 12AED and goes 3AED per km, while a monthly transportation pass costs around 300AED.
- Sharjah: taxi fare starts from 13AED and goes 3AED per km, while a monthly transportation pass costs around 250AED.
- Ajman: taxi fare starts from 12AED and goes 3AED per km, while a monthly transportation pass costs around 300AED.
Utility
Monthly bill for electricity, gas, heating, water, and trash would be
- Abu Dhabi: 685AED
- Dubai: 692AED
- Sharjah: 634AED
- Ajman: 764AED
Grocery food:
The cost of basic groceries in your one visit to the grocery store would be;
- Abu Dhabi: 165AED
- Dubai: 83AED
- Sharjah: 143AED
- Ajman: 78AED
Education
Fees for schools vary according to the grades and the location of the building. A full-day child care and primary school would cost;
- Abu Dhabi; childcare or kindergarten cost is 2,545.14 AED monthly. The primary school fee is 36,619.84 AED annually
- Dubai; childcare or kindergarten cost is 2,608.66 costs AED monthly. The primary school fee is 45,818.68 AED annually
- Sharjah; childcare or kindergarten cost is 913.89 AED monthly. The primary school fee is 18,909.09 AED annually
- Ajman: childcare or kindergarten cost is 800AED monthly. The primary school fee is 12,133.33 AED
Internet
Internet service also provides TV cable and landline services, you can call freely on other landlines in the country. An Internet with 60Mbps and unlimited data would monthly cost;
- Abu Dhabi: 399 AED monthly
- Dubai: 345AED monthly
- Sharjah: 333AED monthly
- Ajman: 294AED monthly
Final thoughts:
The cost of living is very high in some emirates of UAE, while other parts are cheaper and provide reasonable living. It is up to you to maintain your lifestyle accordingly to avoid getting broke from time to time.
We are here to help you get settled in UAE without any worry on your end. Check out our website https://moveto-uae.com/ to get more information about different visas and businesses in the UAE.