UAE has become a big destination for work and investment over the past few years. Its luxurious lifestyle and rapid development have encouraged many individuals and families to move there.
If you are considering moving to the UAE, then you need to know all about it. In this article, you will find everything you need to know about the cost of living in the UAE, including Dubai, Abu Dhabi, Sharjah, and Ras Al Khaimah.
In addition, if you’re wondering about living costs in the UAE compared to other countries, you will find answers below.
- Cost of Living in the UAE
- Cost of Living in the UAE by City
- Dubai
- Abu Dhabi
- Sharjah
- Ras Al Khaimah
- Ajman
- UAE Vs India
- UAE Vs Canada
- Key Takeaways
- FAQs
Cost of Living in the UAE
In the United Arab Emirates, the cost of living varies by lifestyle and family size, but on average, a single person’s monthly expenses, including essentials such as food, transport, and utilities (but excluding rent), are around AED 4,000–4,200 per month. A family of four’s basic monthly costs, again excluding rent, are typically around AED 12,600–14,200. These figures cover everyday needs such as groceries, transport, healthcare, and leisure, but actual costs can rise significantly once housing and schooling are included. It’s important to note that living costs in the UAE can change depending on lifestyle choices, size of accommodation and personal spending habits. However, it’s essential to note that these expenses can fluctuate based on:
- Location: The emirate you reside in can significantly influence your expenses.
- Commuting habits: Depending on how often and the mode of transportation, this can vary.
- Accommodation type: Whether you choose to live in an apartment, villa, or shared space.
- Lifestyle choices: Dining out, entertainment, and other personal choices can adjust your monthly costs.
Housing costs, particularly rent, make up the largest part of living expenses in the UAE, followed by school fees and groceries. Below is a breakdown of the cost of living in the UAE.
Housing
Housing is typically the largest living expense in the UAE, with rent for a studio apartment averaging around AED 45,000–70,000 per year (about AED 3,750–5,800 per month) and a one-bedroom apartment generally costing AED 65,000–90,000 annually (around AED 5,400–7,500 per month) in 2025. These figures can vary widely depending on the type of property and location, with more central or premium areas commanding higher rents. As a result, rent alone often forms the biggest portion of a household’s budget in the UAE.
Utilities & Internet
Monthly utilities, including electricity, water, and cooling, generally range from around AED 800 to AED 1,500 for a typical home, with higher bills in hotter months due to air conditioning. Internet and phone plans can add another AED 400–600 per month, depending on the provider and package chosen.
Education
Education costs in the UAE can vary significantly by school and curriculum, but private schooling remains one of the more substantial regular expenses for families. Annual school fees often range from tens of thousands to over one hundred thousand dirhams per child, depending on the type and quality of the school.
Health & Insurance
Health insurance is mandatory for residents in the UAE, and many employers include basic coverage. For those arranging private plans, premiums can vary widely based on coverage level, but annual costs are often in the low thousands of dirhams per person. Without insurance, individual consultations can range from AED 200 to AED 600 or more.
Transportation
Transport costs depend on whether you use public transport or a private vehicle. A monthly public transport pass typically costs around AED 300–350, while owning and running a car, including fuel, maintenance and insurance, can raise the monthly total significantly higher.
Groceries & Food
Grocery and food expenses vary with lifestyle but often amount to AED 800–1,200 per month for a single person, with families typically spending several thousand dirhams when cooking at home and occasionally dining out. Staple food prices are moderate, though imported products can be more costly.
Cost of Living in the UAE by City
Now that we have covered the general cost of living in the UAE, let’s take a closer look at how living costs vary across different UAE cities:
Cost of Living in Dubai
Dubai is among the more expensive cities in the UAE, with a single person’s monthly living costs averaging AED 4,000–4,500, excluding rent. Rent is the main expense, with a one-bedroom apartment typically costing AED 5,000–7,500 per month. For a family of four, monthly living costs usually range from AED 12,000 to AED 15,000, excluding rent and school fees.
Dubai is often the first city that comes to mind when mentioning the UAE, having earned a strong reputation for its luxury, entertainment and lifestyle offerings. The city attracts residents and visitors alike with iconic landmarks such as the Burj Khalifa, Burj Al Arab and Palm Jumeirah, along with high-end hotels, large shopping centres and a wide range of family activities. These premium attractions and services contribute to Dubai having one of the highest costs of living in the country.
Learn more about the approximate price ranges when it comes to living in Dubai through the following table.
| Expenses | Costs |
| Studio Rent | AED 3,500 and AED 5,800 |
| Groceries | AED 800 – AED 1200 (monthly) |
| Transportation | – Single route bus fares: AED 3 – AED 8.5 – Taxi fares: AED 12 – AED 30 |
| School Tuitions | AED 12,000 – AED 60,000 |
In case you’re planning to move to Dubai with your family, then schools are an important aspect. To save your time, check these detailed articles about the best British schools and American schools in Dubai.
Cost of Living in Abu Dhabi
Abu Dhabi has a relatively high cost of living, with a single person’s monthly expenses averaging AED 3,500–4,200, excluding rent. A one-bedroom apartment typically costs AED 4,500–7,000 per month, while a family of four may spend AED 11,000–14,000 monthly, excluding rent and school fees.
Abu Dhabi, the capital of the UAE, is widely regarded as one of the most family-friendly emirates, offering well-developed services and facilities for residents. The city provides a mix of luxury communities and more moderately priced housing, all supported by strong infrastructure and public services. As a result, many families choose to live in Abu Dhabi, with the overall cost of living remaining relatively close to that of Dubai. Cost of living in Abu Dhabi breakdown:
| Expenses | Costs |
| Accommodation | AED 3,600 – AED 9000 (monthly) |
| Groceries | AED 250 – AED 300 (monthly) |
| Transportation | – Single route bus fares: AED 2 – Taxi fares: Starting fares AED 12 (average: AED 2/Km) |
| School Tuitions | AED 4000 – AED 81,000 |
Keep in mind that the cost of living in Abu Dhabi for a bachelor can be less, as most students prefer living in dorms, which is cheaper. Otherwise, they usually go for studio apartments, which are a more convenient option for bachelors.
Cost of Living in Sharjah
Sharjah has a lower cost of living compared to Dubai and Abu Dhabi, making it a popular choice for families. A single person’s monthly expenses average AED 3,000–3,500, excluding rent. Renting a one-bedroom apartment typically costs AED 3,000–4,500 per month, while a family of four may spend AED 9,000–11,500 monthly, excluding rent and school fees.
Sharjah is an attractive option for those who want to enjoy the UAE’s high-quality services while benefiting from more affordable living costs. As the third most populated emirate, it is well regarded for its rich history, culture and strong community focus. Sharjah offers good living conditions for both individuals and families, with overall living costs being significantly lower than in Dubai, and estimates showing it is around 19% cheaper on average.
This makes it a convenient destination for many people looking to move to the UAE. Here are the price ranges for some of the expenses in Sharjah:
| Expenses | Costs |
| Accommodation | AED 2,500 – AED 5,500 (monthly) |
| Groceries | AED 700 – AED 1,000 (monthly) |
| Transportation | – Single route bus fares: AED 8 – Taxi fares: Starting AED 13 |
| School Tuitions | AED 6,000 – AED 40,000 |
Cost of Living in Ras Al Khaimah
Ras Al Khaimah has one of the lowest costs of living in the UAE, making it appealing for those seeking a more affordable lifestyle. A single person’s monthly expenses typically average AED 2,500–3,000, excluding rent. A one-bedroom apartment usually costs AED 2,500–4,000 per month, while a family of four may spend around AED 8,000–10,000 monthly, excluding rent and school fees.
Ras Al Khaimah is known for its lower cost of living while still offering the comfortable lifestyle the UAE is famous for, making it one of the more affordable emirates for residents and expats. It is particularly appealing for those seeking value without sacrificing quality of life. As a coastal emirate, Ras Al Khaimah also offers waterfront living and scenic views of the Arabian Gulf, adding to its overall appeal.
Below you will find all the information you need on living in Ras Al Khaimah:
| Expenses | Costs |
| Studio Rent | AED 2,000 – 4,500 (monthly) |
| Groceries | AED 650– AED 950(monthly) |
| Transportation | – One-way bus fare: AED 10 – Taxi fares: Starting AED 6 |
| School Tuitions | AED 5,000 – 35,000 |
Cost of Living in Ajman
Ajman offers one of the most affordable living options in the UAE, especially for families and budget-conscious residents. A single person’s monthly expenses typically range between AED 2,300–2,800, excluding rent. Renting a one-bedroom apartment usually costs AED 2,200–3,500 per month, while a family of four may spend around AED 7,500–9,500 monthly, excluding rent and school fees.
Ajman offers some of the lowest living costs in the UAE, particularly when it comes to housing and daily expenses. Overall, the cost of living in Ajman is around 49.6% lower than in Dubai, including both rent and consumer prices, making it a practical choice for budget-conscious residents.
| Expenses | Costs |
| Accommodation | AED 1,800 – AED 3,500 (monthly) |
| Groceries | AED 600 – AED 900 (monthly) |
| Transportation | – Single route bus fare: AED 5 – Taxi fare: Starting: AED 12.5 |
Cost of Living in the UAE vs India
Many people consider moving from India to Dubai for many reasons. You should bear in mind that it is more luxurious than living in India. If we were to compare both Dubai and Delhi, Dubai is 237.4% more expensive. This comparison includes housing, life necessities, utilities, consumer prices and transportation.
Cost of Living in the UAE vs Canada
Canada and the UAE attract expats from all over the world equally. They both offer many great opportunities for those looking to make more money and build better careers.
However, Canada is considered 10% more expensive than the UAE. In fact, according to Numbeo, a website specialised in comparing costs of living between different countries, Canada ranks as the 25th most expensive place to live.
This makes the UAE an optimum option for seeking a better lifestyle and more promising job opportunities.
Key Takeaways
The cost of living in the UAE varies widely depending on the emirate, with Dubai and Abu Dhabi generally ranking as the most expensive, while Sharjah, Ras Al Khaimah and Ajman offer more affordable alternatives. Housing costs, particularly rent, remain the largest expense across the country, followed by school fees and groceries for families. Choosing the right emirate can significantly impact overall living costs, allowing residents to balance affordability with lifestyle preferences and access to services. If you’re planning to relocate, explore the best options for rent in the UAE to find a place that perfectly suits your lifestyle and budget.
FAQs
As of 2023, the UAE labour law does not enforce a standardized minimum wage across all sectors. However, it broadly mentions that wages should allow employees to cover their basic needs.
Living in the UAE isn’t too expensive; it’s 27% cheaper than the US. Depending on your lifestyle, a single person might spend around 10,855 AED/month, excluding rent. So, for a comfy life, ensure your salary can handle rent, daily expenses, and a little extra for emergencies.
Living costs in the UAE depend on several factors: where you live, how you live, and what you do for fun. Take Dubai as an example. An average meal might cost you 40 AED, while a studio’s monthly rent is roughly 3,963 AED. You can add on the cost of transportation, and whether you’re using public transportation or your own car.
3000 AED might seem decent, but it’s not. Always remember, the UAE isn’t the cheapest! It’s okay for basics, but not for savings and Entertainment. You may also have difficulty finding affordable housing with this salary, as rent is one of the significant expenses in the UAE.
No. 1200 AED in Dubai barely covers essentials. Rent is considerably high, and this salary isn’t close to the average of about 21,500 AED/month in the city.
Yes, living in Abu Dhabi can be expensive. While the cost of living varies depending on the emirate, Abu Dhabi is generally known for its higher expenses. Both Abu Dhabi and Dubai have recently dropped in global rankings for the most expensive cities for expats, but the cost of living is still considered high overall.
