Published on and written by Cyril Jarnias
Moving to Saudi Arabia remains, for many expatriates, a rare financial opportunity: often high salaries, no income tax, and career prospects in booming sectors. But once the contract is signed, another question quickly arises: what is the real cost of living on the ground, and under what conditions does this famous “windfall” translate into genuine savings capacity?
This article details, item by item, the cost of living for expatriates in Saudi Arabia. It is based on the latest available data (Numbeo, Statista, real estate reports, sector studies) and offers a specific focus on the cities of Riyadh, Jeddah, and the Eastern Province.
Understanding the General Price Level
Saudi Arabia has a cost of living index of around 45.3, placing it significantly below many major Western cities. Riyadh sits at around 47, Jeddah at 43.8, and Ad Dammam at 42.4. In other words, daily life there is, on average, cheaper than in most European capitals, while remaining costly by South Asian or African standards.
For perspective, it’s useful to compare the capital to some other major global cities.
Comparison of Riyadh with Other Major Cities
| City | Riyadh vs. city (cost of living) | Synthetic Comment |
|---|---|---|
| New York | Riyadh ~ 62.6% cheaper | Price levels are not comparable |
| London | Riyadh ~ 46.7% cheaper | Very significant difference |
| Amsterdam | Riyadh ~ 36.9% cheaper | Significantly higher purchasing power for an equal salary |
| Doha | Riyadh ~ 11% cheaper | Saudi Arabia more affordable than Qatar |
Even within the Kingdom, the differences are noticeable. Jeddah is about a quarter cheaper than Riyadh, and cities like Abha, Ha’il, or Najran have much lower rents than the major economic hubs.
The average monthly net salary after tax in Saudi Arabia, a high level by regional standards.
What Monthly Budget to Plan For?
Estimates converge on fairly wide ranges, depending on lifestyle, city, type of housing, and whether or not there are children.
Indicative Monthly Budgets
| Profile and City | Range of Monthly Expenses (SAR) | Comment |
|---|---|---|
| Single, Riyadh | 3,000 – 8,000 | From a ‘simple’ to a very comfortable lifestyle, excluding excess |
| Single, Jeddah | 3,000 – 6,000 | Slightly cheaper than Riyadh |
| Single, Dammam / Al Khobar | 2,800 – 5,500 | Eastern Province a bit more affordable for housing |
| Couple, Riyadh | 12,000 – 18,000 | Typical ‘expatriate’ comfort level |
| Family (4 people), Riyadh | 20,000 – 35,000 | With adequate housing and possibly an international school |
| Family (4 people), Jeddah | 9,000 – 18,000 | Highly dependent on school and neighborhood choice |
| Family (4 people), Dammam/Khobar | 8,000 – 15,000 | More economical options than Riyadh |
These amounts typically include housing, food, transportation, communications, routine leisure, and, for families, part of the school fees. They do not account for exceptional expenses (frequent travel, purchase of high-end vehicles, etc.).
The average monthly household budget is estimated at 4,159 SAR in 2024, but this national figure is theoretical for an expatriate. Actual expenses increase significantly with an urban rent, consumption of imported goods, and enrolling children in private international schools.
Housing: The Biggest Expense
For an expatriate, housing is by far the heaviest line in the budget, especially in major urban areas. The gap between neighborhoods and types of property is very significant, particularly in Riyadh.
Rental Levels by City and Property Type
The following data provides an order of magnitude for rents, across all types of neighborhoods.
| City / Property Type | Range of Monthly Rents (SAR) |
|---|---|
| Riyadh – apartment | ~ 2,917 – 20,833 |
| Riyadh – house / villa | ~ 5,000 – 30,000 |
| Jeddah – apartment | ~ 1,200 – 6,250 |
| Jeddah – house | ~ 5,000 – 14,583 |
| Dammam Metro – apartment | ~ 1,375 – 3,750 |
| Dammam Metro – house | ~ 3,333 – 10,000 |
| Cheaper Cities (Abha, Ha’il, Najran) – city center | ~ 1,375 – 2,250 |
In Riyadh, a studio or small one-bedroom can be around 2,000 to 3,000 SAR per month in intermediate neighborhoods, but the gaps explode when aiming for areas popular with expatriates (Diplomatic Quarter, Hittin, Al Nakheel, north of the city) or Westernized residential compounds.
Riyadh: Detailed Ranges by Apartment Type
Recent estimates show a clear upscaling of the market, particularly in the north of the capital.
| Type of Housing in Riyadh (2025–2026) | Typical Monthly Rent Range (SAR) |
|---|---|
| Studio | 1,600 – 6,000 |
| 1 bedroom | 3,100 – 4,100 in the center, sometimes more in premium areas |
| 2 bedrooms | 3,000 – 7,000 |
| 3 bedrooms | From 4,000, can exceed 7,000 |
| City villa | 10,000 – 30,000 |
| Housing in an expatriate compound | 8,000 – 20,000 (apartments); villas 15,000+ |
The difference between an apartment in a local neighborhood building and a unit in a secure, ‘Western’ compound with a pool, clubhouse, and services can easily amount to several tens of thousands of riyals per year: an apartment in a Westernized residence often rents for 50,000 to 100,000 SAR per year, compared to 25,000 to 60,000 SAR in a more ‘local’ building.
This is the annual cost in SAR for a three-bedroom apartment in high-end compounds, a price many expatriates accept for the comfort and security.
Neighborhoods and Rental Levels in Riyadh
Some areas are particularly sought after by expatriates, with rents to match.
| Area / Neighborhood in Riyadh | Typical Profile and Rent Range (SAR/month) |
|---|---|
| Diplomatic Quarter (Al Safarat), Hittin, Al Nakheel | Expatriate areas: apartments 5,000 – 12,000, compound villas 15,000+ |
| Al Olaya, As Sulimaniyah, Al Wurud | Young professionals: 1 bedroom at 2,500 – 4,500 |
| Al Yasmin, Al Narjis, Hittin (families) | 2-3 bed apartments: 4,000 – 8,000; compound villas 12,000 – 20,000+ |
| Al Rawabi (east of Riyadh) | 1 bed: 18,000 – 25,000 / year; 2 bed: 25,000 – 35,000 / year |
| Older neighborhoods / southern periphery | Significantly lower rents, starting from about 1,500 – 2,000 for a small unit |
Note: Since September 2025, Riyadh has implemented a rent freeze for ongoing contracts, valid for five years. Landlords can no longer increase the rent for an existing tenant before 2030. This measure has helped calm a previous surge in rents (10 to 15% annual increase observed in some sectors in the first half of 2025); as of early 2026, increases are rather in the range of 1 to 3% year-on-year for new leases.
Property Purchase and Rental Yields
Purchase prices vary greatly by city and property type, but overall remain below those of major European capitals.
| City / Property Type | Average Price per m² (SAR) | Comment |
|---|---|---|
| Riyadh – apartment | ~ 5,050 | Dynamic sector, marked price increase since 2020 |
| Riyadh – house | ~ 5,320 | Family villas in high demand |
| Jeddah – apartment | ~ 4,250 | Cheaper than Riyadh |
| Jeddah – house | ~ 5,150 | Strong market for villas |
| Dammam – apartment | ~ 3,545 | Eastern Province more accessible |
| Dammam – house | ~ 3,430 | Prices lower than Riyadh and Jeddah |
| Abha | ~ 2,947 | More affordable city |
| Ha’il | ~ 1,382 | Very inexpensive compared to major cities |
A one-bedroom apartment in central Riyadh typically sells for between 1.2 and 1.5 million riyals. In a neighborhood like Al Rawabi, entire apartments are negotiated more around 500,000 to 800,000 SAR.
Rental yields in Riyadh remain attractive, varying by housing type: 9 to 12% per year for studios, 8 to 11% for one-bedroom apartments, 7 to 9% for three bedrooms, and 5 to 8% for villas and compounds. For example, for an apartment purchased for 800,000 SAR, annual maintenance costs are estimated between 8,000 and 12,000 SAR (i.e., 1 to 1.5% of the value), plus monthly fees for common areas typically ranging from 200 to 500 SAR.
For expatriates purchasing with a loan, fixed rates over 20 years are around 4.56% nationally, and about 5.18% in Riyadh. For an apartment worth 1.2 to 1.5 million riyals, a monthly payment close to 5,000 SAR over 25 years at 4.5% interest is often cited as a benchmark.
Utilities and Home Services: A Moderate Cost, But Not to Be Overlooked
Domestic utilities – water, electricity, cooling, internet, phone – are more reasonable than in Europe, partly due to public subsidies, but intensive air conditioning use in summer can drive up the bill.
Basic Utilities
For a standard apartment of about 85–90 m², a total bill (electricity, water, cooling, waste) averages around 400 SAR per month nationally, and nearly 380 SAR in Riyadh, within a range of 250 to 600 SAR depending on the season and usage.
Residential electricity is billed on a progressive tariff; water also, via tiers starting at 0.15 SAR per m³ for initial volumes and increasing significantly beyond. The combined water and electricity bill can thus fluctuate between 300 and 600 SAR per month, or even more in peak summer for a heavily air-conditioned home.
Internet and Telephony
High-speed internet access is standard in Saudi urban life, with prices comparable to or slightly lower than Western Europe.
| Service (Riyadh) | Average Monthly Cost (SAR) |
|---|---|
| Fixed internet ≥ 60 Mbps, unlimited data | ~ 280 (range 230 – 300) |
| High-end fiber plan | ~ 300 – 400 |
| Mobile plan with calls + 10 GB of data | ~ 100 – 200 (average ~ 127) |
| Pay-TV platform (e.g., OSN Global) | From about 159 |
For a single expatriate, budgeting 350 to 500 SAR per month for telecoms (fixed internet + one comfortable mobile line) is a realistic baseline.
Domestic Help and Drivers: A Key Element of the ‘Lifestyle’
Saudi Arabia stands out for the extent of household employment. Over 4 million households are said to be assisted by domestic staff; about 3 million such workers operate in the Kingdom, including nearly 800,000 housekeepers.
For expatriates, using services such as a housekeeper, nanny, or driver can significantly improve daily quality of life. However, it’s important to note that these services represent a significant additional cost in the budget and therefore require careful financial planning.
For Riyadh, the orders of magnitude are as follows:
| Type of Domestic Service (Riyadh) | Estimated Monthly Cost (SAR) |
|---|---|
| Live-in housekeeper (direct hire) | 2,000 – 2,500 |
| Housekeeper via agency (all-inclusive) | 3,500 – 4,500 |
| Part-time housekeeper (1–2 times/week) | 500 – 800 |
| Live-in driver (direct hire) | 2,000 – 3,000 + accommodation/food |
| Driver + car (via company) | 4,000 – 6,000 |
Legally, the government has set a minimum wage for domestic workers at 1,500 SAR per month, but in practice, salaries range more between 1,500 and 2,500 SAR depending on the function: housekeepers, nannies, cooks, caregivers for the elderly, drivers.
Initial recruitment costs for a domestic worker in Saudi Arabia range from 5,000 to 25,000 SAR, depending on nationality and intermediary.
For an expatriate with a good package, access to these services remains very affordable compared to Europe; but for a couple or family on a tighter budget, the total can quickly consume a significant portion of income if combining a driver, nanny, and housekeeper.
Food: Between Cheap Local Markets and Expensive Imported Products
Food represents the second largest expense after housing. Again, it all depends on lifestyle: home cooking based on local products or frequenting Western supermarkets and international restaurants.
Monthly Food Budget
Estimates indicate that a family of four spends between 1,000 and 2,500 SAR per month on basic groceries, often more if shopping mainly in large Western chains and consuming imported products.
For a family of four in Riyadh, monthly groceries in a Western-style supermarket can cost between 2,000 and 3,500 SAR.
Some Price Benchmarks
| Product (Saudi Arabia / Riyadh) | Approximate Average Price (SAR) |
|---|---|
| Inexpensive meal at a restaurant | 25 (Riyadh ~ 31.5) |
| Fast food combo meal (e.g., McMeal) | 28 (Riyadh ~ 30) |
| Three-course meal for two at a mid-range restaurant | 150 (Riyadh ~ 200) |
| Cappuccino | 14.5 (Riyadh ~ 16.5) |
| Small bottle of water | ~ 1 (Riyadh ~ 1.25) |
| Milk (1 liter) | ~ 4.8–6.25 |
| White bread (1 lb / ~450g) | ~ 3.4 (Riyadh ~ 4.1) |
| Dozen eggs | ~ 9.5 |
| Rice (1 kg) | ~ 6.9–11 |
| Apples (1 kg) | ~ 5.95–13.5 |
At restaurants, a meal at a mid-range establishment in Riyadh typically ranges from 40 to 100 SAR per person, while a more upscale dinner is rather above 250 SAR per person.
For a single expatriate, a monthly budget of 700 to 1,000 SAR for groceries, plus the equivalent of 300 to 500 SAR for eating out, already allows for a decent level of comfort, without excess.
Getting Around: Cheap Fuel, Car Almost Essential
Saudi Arabia remains largely designed for private cars. Even though Riyadh inaugurated its metro in late 2024 and investments in public transport are progressing, most expatriates continue to travel by car or via ride-hailing services.
Daily Transportation
| Transportation Expense Item (Saudi Arabia / Riyadh) | Indicative Average Cost (SAR) |
|---|---|
| One-way public transport ticket | ~ 4; Riyadh metro ~ 4–6 |
| Monthly bus/metro pass | ~ 120 (Riyadh ~ 140) |
| Short ride-hailing trip (Careem, Bolt) | ~ 15 – 30 |
| Taxi base fare (Riyadh) | ~ 14 |
| Gasoline (1 liter, Riyadh) | ~ 2.18 |
A ‘mixed’ transport budget (metro + occasional ride-hailing) for an expatriate without a personal car can be between 300 and 800 SAR per month, depending on travel frequency.
Car Ownership Cost
For expatriates who drive, the cost structure is different:
Overview of costs associated with buying, leasing, and maintaining a vehicle in Saudi Arabia, in Saudi Riyals (SAR).
For a sedan like a Toyota Camry, budget between 30,000 and 60,000 SAR.
The price of a new SUV starts around 80,000 SAR and can exceed 150,000 SAR.
Leasing a sedan typically costs between 1,500 and 2,500 SAR per month.
Leasing an SUV is more expensive, between 2,500 and 4,000 SAR per month.
Budget annually for insurance from 1,500 to 3,500 SAR.
Routine maintenance costs vary from 1,000 to 3,000 SAR per year.
Fuel, however, remains very competitive globally, which limits the financial weight of daily use. On the other hand, the acquisition and insurance cost must be factored into the overall calculation: for a household leasing a vehicle, the ‘transport’ line can easily represent 2,000 to 3,000 SAR per month.
Healthcare: Mandatory Insurance for Expatriates
The Saudi healthcare system is of a very high standard in major cities, but free access concerns primarily citizens. Expatriates, on the other hand, must have private health insurance, often provided by the employer.
A consultation with a general practitioner in a private clinic costs between 200 and 400 SAR, and between 400 and 1,000 SAR with a specialist. With insurance, a simple visit usually results in a small out-of-pocket payment (co-payment of about 20 SAR). However, serious or non-covered care can become very expensive quickly.
The orders of magnitude for private health insurance premiums are as follows:
| Insured Profile | Indicative Annual Premium (SAR) |
|---|---|
| Individual – basic plan | ~ 2,500 – 5,000 |
| Individual – extended coverage | From ~ 7,500, can exceed 10,000 |
| Family of four | Approximately 18,000 – 20,000 (average) |
In most salaried contracts, these amounts are covered in whole or in part by the employer; it is therefore crucial for an expatriate to read the details of the proposed coverage carefully (limits, included services, co-payment share, maternity, dental, etc.), as overly limited insurance can have a heavy impact in case of a serious health problem.
Schooling: The Expense That Can Blow a Family’s Budget
For expatriate families, children’s education very often represents the number 1 or 2 budget item, on par with housing. Saudi public schools are generally not accessible or suitable for non-Arabic speaking foreign children; therefore, almost all expatriates turn to private and international schools.
Tuition Fee Levels
The price ranges are wide, but the following trends emerge:
| School Level / Type of School | Annual Range (SAR) |
|---|---|
| Nursery / kindergarten (private) | 500 – 2,000 per month; i.e., ~ 6,000 – 24,000 per year |
| International preschool | 20,000 – 50,000 per year |
| International schools (primary / secondary) | Generally 40,000 – 100,000 per child per year |
| Non-international private (non-Saudi students) | ~ 10,000 – 50,000 per year |
| International high school (IB, A-Levels, AP) | Up to 100,000 SAR, or slightly more for some prestigious schools |
Beyond ‘gross’ tuition fees, the extras add up: initial registration (often several thousand riyals), mandatory uniform, books and school supplies, outings, extracurricular activities, school bus, international exams (IGCSE, A-Levels, IB, AP). For one child, these additional costs can amount to thousands, even tens of thousands of riyals per year.
This is the annual cost in SAR that many families spend per child for high-level international education in Riyadh or Jeddah.
Leisure, Sports, and Daily Life
Contrary to the sometimes austere image circulating abroad, daily life in major Saudi cities today offers a wide range of activities: shopping malls, cinemas, theme parks, concerts, cultural festivals, sports clubs, desert outings, etc. The Kingdom’s opening to tourism and international events has considerably expanded the entertainment offering.
Cost of Common Leisure Activities
| Activity / Service (Riyadh) | Indicative Cost (SAR) |
|---|---|
| Movie ticket | ~ 60 – 62.5 |
| Movie outing / concert / event | 50 – 300 depending on the nature of the event |
| Gym membership | ~ 200 – 1,000 per month depending on the standard |
| Weekend in the desert or getaway | 300 – 1,000 depending on accommodation |
| One-off cleaning via app | 100 – 150 per session |
Clothing remains close to international standards for mid-range brands, but with a surcharge on imported major brands. A pair of Levi’s-type jeans is around 180–190 SAR, a pair of brand-name running sneakers about 360–400 SAR, a pair of leather dress shoes over 300 SAR.
A realistic monthly budget in SAR for a single person’s leisure including movies, restaurants, gym, and occasional activities.
Taxation: A Paradise for Salaries, But 15% VAT
One of Saudi Arabia’s major attractions for expatriates remains the absence of income tax. The net salary deposited into the account is, so to speak, ‘net of net’. This provides a huge advantage compared to equivalent positions in London, Paris, or Amsterdam, even if the cost of living remains significant.
A 15% Value Added Tax (VAT) applies to most goods and services, which significantly impacts the cost of everyday consumption and major expenses like furniture, electronics, vehicles, schooling, or professional fees. Although some operations are exempt (such as residential rents), it is essential for an expatriate to factor this tax into their cost of living calculation.
Regarding housing, there is no annual property tax for owner-occupied homes, but real estate transactions (purchase/sale) are subject to a 5% fee (Real Estate Transaction Tax). Residential rental income is, in principle, exempt from VAT, although special cases may exist for investment structures.
What an Expatriate Really Earns: Discretionary Income and Savings
With a cost of living generally lower than major Western cities and virtually no income tax, Saudi Arabia offers very high savings potential for expatriates who manage their budget well.
Let’s take some simplified scenarios in Riyadh, based on the orders of magnitude cited above:
A single mid-level manager earning 20,000 SAR per month, living outside a compound with a rent of 4,000 SAR and current expenses of 3,000 to 4,000 SAR, can save 8,000 to 10,000 SAR. A couple without children with 30,000 SAR, with a rent of 6,000 SAR and living expenses of 8,000 to 10,000 SAR, can theoretically save 10,000 to 15,000 SAR. A family of four with an income of 50,000 SAR, housing at 10,000 SAR, school fees of 15,000 to 20,000 SAR, and current expenses of 10,000 to 12,000 SAR, has a savings margin of 8,000 to 15,000 SAR, provided non-essential spending is limited.
Conversely, a poorly informed expatriate who chooses an oversized compound, multiplies trips, enrolls three children in international schools at the top of the price range, and combines a driver, nanny, and housekeeper, may find themselves, despite a very comfortable salary, with a savings capacity much lower than expected.
How to Optimize Your Cost of Living in Saudi Arabia?
In view of all this data, some key guidelines emerge for expatriates wishing to maximize their purchasing power while enjoying life on the ground.
The first lever is obviously housing: accepting an apartment outside a compound but in a decent neighborhood, or a mid-range compound rather than ultra-premium, can save several thousand riyals per month. The choice of city also matters: for equal responsibilities, settling in a cheaper city than a highly sought-after neighborhood in Riyadh can be interesting.
To control your budget, it is advisable to cook at home more often, favor local products over imported ones, and frequent mid-range restaurants and more local leisure spots.
Third lever, schooling: looking closely at what the employer covers, considering less prestigious but academically solid private schools, or delaying entry into international schools for younger children, can significantly lower the annual bill.
Finally, financial discipline remains essential. Many studies recommend allocating about 20 to 25% of income to savings. The Saudi environment is very conducive to this: net salaries, reasonable cost of living relative to remuneration, moderate inflation (about 1.7% forecast for 2025), moderate increase in food prices (around 1 to 2% per year). Provided one resists the temptation of the ‘expatriate lifestyle’ and impulsive spending, it is perfectly possible to build up significant capital within a few years.
In Summary
The cost of living in Saudi Arabia for an expatriate is an apparent paradox: higher than in India, Pakistan, or many Asian countries, but far below that of London, New York, or Amsterdam. In broad strokes:
Housing is the main expense, especially in sought-after neighborhoods. Food and transport remain affordable by adopting local habits. Healthcare is adequately covered with good employer insurance, but costly without. International schooling can explode the family budget. The tax situation is inverted: no income tax but a 15% VAT, leading to a high net salary but heavily taxed consumption.
For an expatriate who prepares their relocation well, negotiates their package (housing, health insurance, education) intelligently, chooses their neighborhood carefully, and keeps an eye on their spending, Saudi Arabia remains one of the rare countries where one can combine a high standard of living with a significant savings capacity. For someone who goes along with the ‘expatriate lifestyle’ without budgeting, the Kingdom can, on the contrary, prove to be much more expensive than it initially appears.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
