Dubai often has a reputation as an expensive city to live in. Ex-pats who move here, typically lured in by the beefed-up salary packages, don’t exactly help this perception by living in the fast and expensive lane. But the fact is, Dubai compares very favorably with some of the other major ex-pat hubs like London, Hong Kong, Singapore, and New York. To put it in perspective, the average rent in Dubai is around $1505 for a studio apartment, which isn’t bad compared to, say, $2176 in Singapore or $3,090 in New York.
Although living costs have increased in Dubai over the past decade, lower oil prices coupled with the impact of the pandemic have actually resulted in a decrease in living costs. Rent and property prices, dining out, and transportation have all been affected. Dubai came in 23rd on Mercer’s Cost of Living Survey 2020, a drop of two places since the year before. Moreover, data shows that the average cost of living for one person dropped by 89% in 2021 from that in 2020.
It’s certainly possible to live on a budget in Dubai, which is useful if you’ve moved there to start a business or find better work. In this blog, we’ll break down that budget into monthly costs and dive a bit deeper into how you can save money while enjoying a decent standard of living.
Residential Costs
On average, 30% of your living expenses will go to housing. These expenses obviously vary depending on where in the city you live, just as with any other city. If you choose to live in any of the areas popular with the ex-pat community, typically near the city center, such as in Jumeirah, Dubai Marina, or Dubai’s Old Town, it should cost you on average AED 5,500 or $1,500 a month. However, if you’re more comfortable in the suburban areas outside the city center, expect prices at around AED 3,600 or $1,000. Depending on what you do for a living — if you’re self-employed and work from home, for example — this isn’t a bad deal.
Groceries
Generally speaking, cooking your own meals is cheaper than eating out. Groceries should cost you between AED 1500 – AED 2000 a month. A lot depends on the kind of meals you prefer. If you buy in bulk twice a month at a large supermarket like Carrefour, this will save you quite a bit compared to shopping locally and often. A good tip is to use voucher codes when you shop for groceries or any other provisions. It’ll make a huge dent in your expenses. It’s difficult to save money, especially if you’re paying for college. But it’s possible to eat well and cook for yourself. If you have access to a kitchen and the time, the Internet is a great resource for meals that are cheap, quick and healthy. Pinterest is full of recipes that take 30 minutes or less to prepare and you can easily find recipes on Google, Facebook and other social media sites. The point is not to spend your money on expensive foods and meals, but to make the most of what you have and save enough to live on.
Transportation
Fuel prices are cheap in the Middle East, as you’d expect. A liter of petrol costs less than $1. This means driving by car is one of the best ways to get around the city. It’s worthwhile bearing in mind that Dubai does experience high traffic congestions If you have a daily commute for work, especially during peak hours, public transport is probably a better bet. A monthly bus pass will only set you back around AED 300 or $82.
On the road or off the road, getting around Dubai is easy as a breeze with awesome public transport, private taxis and car rental. Buses and cars are not the only ways to get around. Dubai also has an energetic and reasonably priced metro service, which is a great option for tourists exploring the city.
Coping with Healthcare expenses while living in Dubai
Emirati locals can avail themselves of government-funded healthcare, and public medical facilities are free for them. Most ex-pats opt for private healthcare for access to English-speaking doctors. As an ex-pat, you can get a public health card as well, which will give you a 50% discount on your medical fees. It costs you a one-time fee of AED 320 or $87.The healthcare industry in the UAE is booming, with more and more hospitals and clinics coming up more and more often. With so much competition in the industry, hospitals look to attract patients by offering attractive insurance packages.
Utilities
Your DEWA bill (from the Dubai Electricity and Water Authority) will probably account for the largest chunk of your utilities, followed by internet, TV, and your cell phone bill. All in all, this should cost you around AED 1000.The cost of living in the UAE can be quite high, but you can reduce bills by making sure you keep your utility consumption as low as possible. You can reduce your water and electricity consumption by lessening the amount of time you spend using the AC, turning off lights and electronics when they’re not in use, and making sure to keep your devices charged. If you can keep the bill below AED 1,000, you’re on track to live more comfortably. Also, you could probably go cheaper by renting a small apartment with a roommate or two.
Lifestyle Expenses and Living in Dubai
Dubai isn’t a popular travel destination for nothing. While you’re there, be sure you explore some of the amazing things you can do in Dubai for leisure. After all, living on a budget doesn’t necessarily mean being a hermit. A cinema ticket costs as little as AED 40, an hour at a tennis court AED 127, and a meal for two at a mid-range restaurant around AED 250.
It’s definitely possible to be on a budget while living in Dubai, which is a great thing if you’ve moved here to start a business or find better work. But it is a little different than in most other places because of the large salary gap and high cost of living. To make sure you’re getting the most out of your budget and living a relatively comfortable life, you will have to maximize your income and minimize your expenses. It will also help if you have a few tricks up your sleeves to keep your spending in check!
Generally speaking, it doesn’t take long to get accustomed to Dubai as a local. Once you’re there, you’ll be able to figure out your own money-saving hacks in no time!
