Cost of Living in the UAE (2025): A Comprehensive Guide for Expats and Newcomers

Radu Lupescu
May 17
5 min read

Updated: Jun 5

Whether you’re planning to relocate to the UAE for a new job, start a business, or settle with your family, understanding the cost of living is a key part of preparing for life in the Emirates.

From glittering skyscrapers in Dubai to the serene suburbs of Abu Dhabi, the UAE offers an exceptional quality of life—but it comes with a price tag that varies greatly depending on your lifestyle, emirate of residence, and personal choices.

In this detailed 2025 guide, we’ll break down the average cost of living in the UAE, including housing, groceries, transport, education, healthcare, and more—so you can budget smartly and plan with confidence.

Cost of Living Varies by Emirate

The UAE is a federation of seven emirates. The most popular for expats are:

Dubai: Known for luxury, international business hubs, and higher living costs.
Abu Dhabi: The capital city with strong government presence and family-friendly communities.
Sharjah, Ajman, Ras Al Khaimah: More affordable, quieter alternatives for families and commuters.

Housing and Rent

Housing is typically the largest expense for expats in the UAE. Rental prices depend on the emirate, location, property size, and whether the building is new or older.

City	1-Bed Apartment (Monthly Rent)	3-Bed Villa/Apartment (Monthly Rent)
Dubai	AED 5,000 – 9,000	AED 11,000 – 22,000
Abu Dhabi	AED 4,000 – 8,000	AED 10,000 – 20,000
Sharjah	AED 2,500 – 5,000	AED 6,000 – 10,000
RAK / Ajman	AED 2,000 – 4,500	AED 5,000 – 9,000

Additional Housing Expenses

Security Deposit: Typically 5% of annual rent
Agent Fee: 2-5% of annual rent
DEWA/ADDC Deposit: AED 1,000 - 2,000
Maintenance: Approximately 5-10% of rent annually

Most rentals require annual contracts, and many landlords ask for 1–4 cheques upfront or post-dated monthly payments. Agency fees and a 5% housing tax may apply. 2025 trends show rental prices have increased 10-15% in prime Dubai and Abu Dhabi locations compared to 2024, driven by continued expat influx and limited new supply.

Groceries and Food

Grocery costs in the UAE can vary depending on whether you shop at local markets (e.g., Lulu, Carrefour) or high-end stores (e.g., Waitrose, Spinneys).

Item	Average Cost (AED)
1 liter of milk	6 – 8
Loaf of bread	4 – 6
1 kg chicken	15 – 25
12 eggs	10 – 14
1 kg rice	8 – 12
Coffee (1 cup at café)	15 – 25
Dinner for two (mid-range)	120 – 250

Dining out regularly in Dubai or Abu Dhabi can be pricey. Cooking at home is a budget-friendly option.

Transport and Fuel

The UAE has high-quality roads, affordable fuel, and expanding metro systems in cities like Dubai.

Transport Type	Cost (Approx.)
Fuel (per litre)	AED 2.80 – 3.20
Dubai Metro (one-way trip)	AED 3 – 7.5
Monthly Metro Pass	AED 300 – 400
Taxi (starting fare)	AED 12 – 15
Used Car (sedan)	AED 20,000 – 50,000+
Car insurance (annually)	AED 1,500 – 3,000+

Dubai and Abu Dhabi offer excellent public transport, while residents in Sharjah and northern emirates often rely on cars.

Education and School Fees

If you’re moving with children, school fees will be a major consideration. The UAE offers a wide variety of international curricula, including British, American, IB, Indian, and French.

Curriculum	Annual Tuition (AED)
British	AED 30,000 – 100,000+
American	AED 25,000 – 90,000+
IB	AED 40,000 – 120,000+
Indian (CBSE/ICSE)	AED 10,000 – 35,000+
Nursery / KG	AED 15,000 – 45,000

Fees vary by school reputation, location, and grade level. Uniforms, books, transport, and extracurriculars are often additional.

Additional Education Costs

Registration Fee: AED 500 - 2,000
Admission Fee: AED 2,000 - 15,000 (one-time)
Books and Supplies: AED 1,000 - 5,000 annually
School Transport: AED 5,000 - 12,000 annually
Extracurricular Activities: AED 3,000 - 15,000 annually

Childcare

Nursery (full-time): AED 2,500 - 5,000 monthly
Nanny/Household Help: AED 2,000 - 4,500 monthly plus visa costs

Healthcare and Insurance

The UAE has world-class hospitals and clinics, especially in Dubai and Abu Dhabi. Health insurance is mandatory for all residents.

Healthcare Expense	Average Cost (AED)
Health insurance (per person/year)	AED 1,500 – 5,000+
General practitioner visit	AED 200 – 400
Specialist consultation	AED 350 – 700
Prescription medications	AED 30 – 150+

Insurance plans are often employer-provided. Freelancers or remote workers must purchase their own plans.

Utilities and Internet

Expense	Monthly Cost (AED)
Electricity & Water (1-bed)	AED 250 – 500
Internet (home broadband)	AED 300 – 500
Mobile Plan (with data)	AED 100 – 300
TV/Streaming (OSN, Netflix)	AED 35 – 100+

Cooling (AC) can make electricity bills higher during summer months (May to September). Some apartments charge additional cooling fees of AED 200-800 monthly

Clothing, Lifestyle & Entertainment

Gym membership: AED 200 – 500/month
Cinema ticket: AED 35 – 50
Fitness classes or yoga: AED 50 – 100/session
Shopping for clothes: Comparable to Europe/US, but varies by brand

The UAE also offers free public beaches, parks, and cultural events, making it easy to enjoy a great lifestyle on any budget.

Hidden Costs of Living in the UAE

Government Fees and Documents

Visa Costs: AED 3,000 - 7,000 per person (every 2-3 years)
Emirates ID: AED 100 - 370 per person
Medical Tests: AED 250 - 500 per person

Banking and Financial Services

Account Maintenance: AED 0 - 100 monthly (waived with minimum balance)
International Transfers: AED 20 - 100 per transaction plus exchange rate margins
Credit Card Annual Fee: AED 0 - 1,500

Monthly Budget Estimates (2025)

Lifestyle	Single (AED)	Family of 4 (AED)
Budget	6,000 – 8,000	12,000 – 18,000
Comfortable	9,000 – 15,000	20,000 – 30,000
Luxury	18,000+	35,000+

These estimates exclude income tax (0% in UAE), but consider housing, food, transport, and basic leisure.

Tips for Managing Costs in the UAE

Choose your emirate wisely – Living in Sharjah or RAK and commuting can save 30–40% on rent.
Cook at home – Eating out often will raise your monthly spending considerably.
Share accommodation – Common for singles or early-stage expats.
Use Nol cards – For discounted metro/bus travel in Dubai.
Compare schools – Indian and CBSE schools are more affordable while still offering strong academics.

Planning Tip: A good rule of thumb is to budget approximately 30-35% of your income for housing, 10-15% for transportation, 15-20% for food, and 20-30% for education if you have children.

2025 Cost Trends and Predictions

Housing: Continued 5-10% increases in premium areas of Dubai and Abu Dhabi
Education: Expected 2-5% increase in school fees
Healthcare: Insurance premiums rising 5-8% annually
Food: 3-4% inflation on groceries and dining
Transportation: Stable public transport costs, slight increases in fuel prices

Final Thoughts

The cost of living in the UAE can be as affordable or luxurious as you choose. While Dubai and Abu Dhabi are on the pricier side, the Emirates overall offer a tax-free income, world-class infrastructure, and an enviable lifestyle for professionals and families alike.

By understanding the key expenses and planning ahead, you can enjoy everything the UAE has to offer—without breaking your budget.