Rated as one of the top 10 global cities to live in, Dubai does come at a price - but it’s totally worth it! For a world-class luxury lifestyle with a multitude of opportunities and attractions in a secure environment, it’s no wonder that the cost of living is high. You might, however, be interested to know that even though living costs in Dubai have risen substantially in the past decade, the impact of COVID-19, coupled with lower oil prices, has actually caused a decrease in the cost of living in Dubai in 2023. Dubai ranked #23 in Mercer’s 26th annual Cost of Living Survey for 2020, a drop of two places since 2019’s ranking.
Although some prices may have dropped this year, the level of luxury and convenience remains just as high. In this blog, we’ll unpack the cost of living in Dubai in 2021 so you have an accurate idea of how to budget and where to spend.
The cost of keeping a roof over your head
One of the most important expenses to consider when calculating the cost of living in Dubai is housing or rental costs. Prices vary according to location, and range anywhere between AED 3,000 to AED 160,000 per month.
Extended stays at selected hotels can actually be cheaper (and more convenient) than committing to a long-term rental contract. You can find fully-serviced hotel rooms at selected Sleep Partners from Thirty Sleeps for as little as AED 2,999 per month, with monthly rewards and benefits included! Find out more at the Thirty Sleeps website.
The cost of keeping the lights and water on
Utilities are facilitated and managed by the Dubai Electricity and Water Authority (DEWA). Regardless of the property, you have to pay a DEWA activation fee of AED 110 (for small metres), which is non-refundable. For an apartment, the security deposit is AED 2,000 whereas, for villas, it is AED 4,000. In addition to this, there will also be an additional Knowledge and Innovation fee to be paid.
Your DEWA bill includes charges for water, electricity, sewerage and housing fees. The housing fee is borne by the property owner but 5% applies to tenants.
The company charges standard per-unit rates as follows:
- Electricity: AED 23 fils
- Water: AED 3 fils
- Sewerage: AED 0.5 fils
The electricity charges are for consumption below 2000KWh per month. If you use more than 6000KWh, charges will be AED 38 fils per unit.
When you do a DEWA bill check, you will notice that prices will be higher in summer because of the increased usage of cooling appliances. Likewise, water consumption will be higher in homes with pools and gardens.
Take note that if you aren’t ready to commit to signing a contract and paying utility bills, Thirty Sleeps offers you the commitment-free opportunity to stay at a fully-serviced hotel, apartment or villa for an affordable, all-inclusive monthly fee. This means that all maintenance, utility, cleaning and laundry fees are included.
The cost of TV and Internet entertainment
TV and internet packages in Dubai are available from the two service providers in the UAE, Etisalat and du. A basic package of AED 389 per month will get you internet download speeds of 250 Mbps, 200+ TV channels and free calls to UAE landlines. Meanwhile, premium packages of AED 1000 or more per month offer 500 Mbps download speeds, and premium sports and entertainment channels. Similarly, mobile plans in Dubai have packages starting from AED 125 per month but can reach AED 500 and more for better data packages and more calling minutes.
The cost of filling your belly
An abundance of restaurants, eateries, street food vendors, supermarket chains and grocery stores means you have a huge variety of options when it comes to feeding yourself or your family in Dubai. If you prefer to shop premium brands only you can expect a much heftier grocery bill, but there are ways to buy on a budget too.
According to Numbeo, you can expect the following average costs for groceries and eating out:
Groceries:
- Milk (regular), (1 liter): AED 5.88 (or between AED 4.00 - AED 10.00)
- Loaf of Fresh White Bread (500g): AED 4.83 (or between AED 3.00 - AED 10.00)
- Rice (white), (1kg): AED 6.83 (or between AED 3.00 - AED 14.00)
- Eggs (regular) (12): AED 9.22 (or between AED 4.80 - AED 15.60)
- Local Cheese (1kg): AED 35.18 (or between AED 20.00 - AED 80.00)
- Chicken Fillets (1kg): AED 24.64 (or between AED 12.00 - AED 45.00)
- Beef Round (1kg) (or Equivalent Back Leg Red Meat): AED 38.54 (or between AED 25.00 - AED 70.00)
- Apples (1kg): AED 7.20 (or between AED 4.00 - 10.00)
- Banana (1kg): AED 5.83 (or between AED 4.00 - AED 10.00)
- Oranges (1kg): AED 6.32 (or between AED 3.75 - AED 12.00)
- Tomato (1kg): AED 5.14 (or between AED 3.00 - AED 9.00)
- Potato (1kg): AED 3.48 (or between AED 2.00 - AED 6.00)
- Onion (1kg): AED 3.15 (or between AED 2.00 - AED 5.00)
- Lettuce (1 head): AED 6.12 (or between AED 2.00 - AED 10.00)
- Water (1.5 liter bottle): AED 2.20 (or between AED 1.29 - AED 3.00)
- Bottle of Wine (Mid-Range): AED 60.00 (or between AED 32.00 - AED 150.00)
- Domestic Beer (0.5 liter bottle): AED 14.58 (or between AED 5.00 - AED 25.76)
- Imported Beer (0.33 liter bottle): AED 21.87 (or between AED 8.00 - AED 45.00)
- Cigarettes 20 Pack (Marlboro): AED 22.00 (or between AED 20.00 - AED 25.00)
Eating out:
- Meal, Inexpensive Restaurant: AED 35.00 (or between AED 20.00 - AED 65.00)
- Meal for 2 People, Mid-range Restaurant, Three-course: AED 250.00 (or between AED 150.00 - AED 500.00)
- McMeal at McDonalds (or Equivalent Combo Meal): AED 28.00 (or between AED 25.00 - AED 35.00)
- Domestic Beer (0.5 liter draught): AED 45.00 (or between AED 30.00 - AED 55.00)
- Imported Beer (0.33 liter bottle): AED 45.00 (or between AED 35.00 - AED 60.00)
- Cappuccino (regular): AED 18.66 (or between AED 10.00 - AED 30.00)
- Coke/Pepsi (0.33 liter bottle): AED 4.41 (or between AED 2.50 - AED 10.00)
- Water (0.33 liter bottle): AED 1.67 (or between AED 1.00 - AED 5.00)
The cost of getting around
Public transport in Dubai is affordable, fast, efficient and perhaps most importantly, air-conditioned! With Dubai’s infamous heat, there is nothing more satisfying than diving into the fully air-conditioned Metro to cool off and get to your destination fast. Dubai has a cleverly designed road infrastructure connected by a network of public buses, taxis, ferries and the Dubai Metro. A monthly pass to use public transport (Nol card) that covers all the city zones costs around AED 350 and enables residents to get around easily. If you own your own vehicle, petrol prices are comparatively lower than other parts of the world, however insurance and servicing costs also need to be taken into account.
You can expect the following travel costs in Dubai in 2023:
- Petrol (1 litre): AED 2.16 – AED 2.04
- Nol Card (Monthly Pass, All Zones): AED 350 per month
- Taxi Fare for 1km: AED 2.00
The cost of staying healthy
Although public healthcare is available in the UAE, private healthcare is recommended for the best possible care. There are reportedly more private hospitals in the UAE than there are public hospitals so you won’t have any problems finding the right medical care for you. If you are moving to Dubai, you must have health insurance in order to obtain a visa, and it is also now a legal requirement for companies to provide health insurance cover for their employees.
If you are not offered health insurance, you will need to purchase it yourself from one of the many medical insurance companies in Dubai.
The cost of medical insurance depends on the type of cover and the insurance provider you choose, but on average Dubai residents spend between AED 5,000 and AED 10,000 for local individual medical insurance, and between AED 100 and AED 2,000 for supplementary health insurance. International insurance is more expensive because you are also provided with cover outside of the UAE.
A basic healthcare plan with minimum benefits (Essential Benefits Plan), as stipulated by the Dubai Health Authority, costs about AED 600 per year.
The cost of schooling your little ones
If you have school-age children, there is a wide variety of education facilities that offer British, American, Indian or IB curriculums. British, American and IB schools typically have higher fees with the top-performing schools charging between AED 4,000 – AED 9,500 per month. There are, however, also more affordable options that cost between AED 2,000 – AED 4,000 per month.
Coupled with this, you will also need to take into account the cost of school uniforms, transport, books, exam fees, and in some cases, extracurricular fees too.
Numbeo lists the following average fees for preschool and international primary school in Dubai:
- Preschool (or Kindergarten), Full Day, Private, Monthly for 1 Child: AED 2,460.71 (or between AED 1,166.67 - AED 4,000.00)
- International Primary School, Yearly for 1 Child: AED 43,666.67 (or between AED 25,000.00 - AED 60,000.00)
The cost of having fun
With the sheer amount of leisure and entertainment activities in Dubai, it can be all too easy to splurge! From luxury fashion and retail hubs, fine-dining restaurants, IMAX cinemas, extreme sports and world-famous tourist attractions, there is never a dull moment in Dubai. If possible, try to set aside a weekly budget for entertainment to avoid overspending.
You can expect the following average prices for leisure and entertainment activities:
- Movie Ticket for One: AED 40
- Gym Membership for One Month: AED 297.57
- Tennis Court Rent (1 Hour on Weekend): AED 121.21
- 1 Pair of Jeans (Levis 501 Or Similar): AED 209.94
- 1 Summer Dress in a Chain Store (Zara, H&M, ...): AED 191.68
- 1 Pair of Nike Running Shoes (Mid-Range): AED 312.98
- 1 Pair of Men Leather Business Shoes: AED 326.99
The total average cost of living in Dubai in 2023
Now that we have a better idea of individual expenses per month, we can calculate an average total monthly cost of living. Even though you will not pay any income tax in the UAE, stats gathered by Numbeo reveal that the monthly costs for a family of four, excluding rent, is estimated at AED 11,792.18, and for a single person, excluding rent, is estimated at AED 3,421.10.
Adding rental costs pushes those numbers a lot higher. Visit Thirty Sleeps now to find affordable accommodation options to suit your lifestyle, and receive monthly rewards to boot!
