UAE Cost of Living Guide 2025 – What to Expect

The UAE continues to be a top destination for expats seeking tax-free income, luxury living, and career opportunities. But with all the glamour, one question remains important: How affordable is life in the UAE? In this article, we break down the cost of living in 2025 across major categories like housing, transportation, food, and more.

Housing Costs

Housing is the largest monthly expense for most residents. Rental prices vary greatly depending on the emirate and location.

• Dubai: One-bedroom apartments in the city center range from AED 6,000 to AED 12,000/month.
• Abu Dhabi: Slightly lower than Dubai, with rents from AED 5,000 to AED 10,000/month.
• Sharjah and Ajman: Much more affordable, with one-bedroom units between AED 2,500 to AED 4,500/month.

Many families choose to live in Sharjah while working in Dubai to save on rent, despite the longer commute.

Transportation Costs

Transportation in the UAE is well-developed and reasonably priced.

• Metro and Bus: A monthly Dubai Metro pass costs around AED 300.
• Fuel: Very cheap at about AED 3/litre.
• Car Ownership: Buying a used car can cost between AED 15,000 to AED 50,000. Annual insurance and registration add AED 2,000–3,000.
• Taxis and Ride-Hailing: The Starting fare is AED 12; longer rides can add up quickly.

Food and Grocery Costs

The cost of food varies based on lifestyle and preferences.

• Groceries: Monthly grocery bills for a family of four can range from AED 2,000 to AED 3,000.
• Dining Out: A meal at a mid-range restaurant costs around AED 60–100 per person. Fast food meals cost around AED 25–35.
• Organic and Imported Products: These can significantly increase your grocery bill.

Utilities and Internet

Utilities are relatively affordable:

• Electricity and Water: Around AED 400–600/month for a two-bedroom apartment.
• Internet: Monthly plans range from AED 300 to 500 for high-speed connections.

Education and Healthcare

• Schools: Tuition at private schools can range from AED 15,000 to AED 60,000 per year.
• Healthcare: Insurance is mandatory and usually covered by employers. Without insurance, a doctor’s consultation costs around AED 300.

Leisure and Lifestyle

• Gym Memberships Range from AED 150 to AED 500/month.
• Cinema Tickets: AED 40–50 per ticket.
• Brunches and Nightlife: Can be expensive, with upscale brunches costing AED 300+ per person.

Conclusion

Living in the UAE offers many perks, but it comes at a cost. By understanding the key expenses from rent and groceries to schooling and healthcare. You can better manage your budget and lifestyle. The good news is, with a bit of planning, it’s entirely possible to live comfortably in the UAE, whether you’re a high-income professional or a budget-conscious expat. The wide range of choices in housing, dining, and entertainment ensures there’s something for everyone in this dynamic country.