Cost of Living in Dubai: An Expat Guide

Published on October 2, 2025 and written by Cyril Jarnias

Dubai, the jewel of the United Arab Emirates, attracts thousands of expatriates each year seeking professional opportunities and a luxurious lifestyle. However, behind the gleaming skyscrapers and massive shopping centers lies an economic reality that every potential expatriate must know: the cost of living in Dubai. In this article, we will dive into the heart of Dubai’s economy to provide you with a comprehensive overview of the expenses you will face as an expatriate in this Middle Eastern metropolis.

The Tax-Free Mirage: A Tax Haven with Steep Prices

One of Dubai’s main attractions for expatriates is the absence of income tax. This advantageous tax policy creates the illusion of significantly increased purchasing power. However, the reality is more nuanced. While net salaries are indeed higher than in Europe, the cost of living in Dubai can quickly eat away at this financial advantage.

Housing represents the most significant expense for expatriates in Dubai. Rents in sought-after neighborhoods like Dubai Marina or Downtown Dubai can reach dizzying heights. A one-bedroom apartment in the city center costs on average between 7,000 and 12,000 AED per month (approximately $1,900 to $3,300). For a three-bedroom villa in a residential area, be prepared to spend between 15,000 and 25,000 AED monthly ($4,100 to $6,800).

These prices, although fluctuating by area, remain significantly higher than those in many European capitals. For comparison, the average rent for a one-bedroom apartment in Paris is about $1,300, nearly three times cheaper than its equivalent in Dubai.

Housing-related costs don’t stop at rent alone. Electricity and air conditioning, essential under Dubai’s desert climate, can represent a hefty bill. Budget an average of 500 to 1,000 AED per month ($135 to $270) for a medium-sized apartment. Water, although subsidized by the government, also remains a non-negligible expense.

Eating in Dubai: Between Luxury Groceries and Local Markets

Food is another major expense in Dubai, with prices that can vary significantly depending on your consumption habits. Supermarkets offer a wide range of imported products, often at prices higher than those in Europe.

For a family of four, the monthly grocery budget can range from 3,000 to 5,000 AED ($815 to $1,360). This amount can quickly rise if you favor imported products or gourmet food stores. For example, a liter of milk costs on average 6.7 AED ($1.82), which is 52% more expensive than in France. A pack of Marlboro cigarettes, on the other hand, is priced at 23 AED ($6.25), paradoxically cheaper than in Europe.

However, it is possible to significantly reduce your food budget by adopting a few tips:

• Visit local markets for fruits and vegetables
• Choose local brands over imported products
• Take advantage of promotions in supermarkets
• Explore local cuisine restaurants, often cheaper than international establishments

Dining out in Dubai offers a wide range of choices and prices. A meal at a mid-range restaurant costs about 50 to 100 AED per person ($13.60 to $27.20). Local street food and fast-food options can be much more affordable, with meals starting at 20 AED ($5.45).

It is important to note that alcohol is heavily taxed in Dubai. A beer in a bar can easily cost 40 to 60 AED ($10.90 to $16.30), while a glass of wine in a high-end restaurant can reach 80 AED ($21.75). Consuming alcohol at home requires a special license, adding an extra cost for enthusiasts of alcoholic beverages.

Getting Around the City of the Future: Between Luxury and Pragmatism

Transportation is a crucial aspect of life in Dubai, a city designed around the automobile. Although public transportation has significantly developed in recent years, many expatriates still choose to own their own vehicle.

Buying a car in Dubai can be more affordable than in Europe, thanks to the absence of import taxes. However, the costs associated with vehicle ownership can quickly add up. Car insurance, for example, is relatively expensive, potentially reaching 5% of the vehicle’s value per year. Parking, especially in popular residential and commercial areas, also represents a significant expense.

The price of fuel, although subsidized, has seen increases in recent years. In 2025, the average price of gasoline in Dubai ranges between 2.50 and 3.50 AED per liter ($0.68 to $0.95), which remains lower than prices in Europe.

For those who prefer public transportation, Dubai offers a modern and efficient network:

• Dubai Metro: with fares ranging from 3 to 8.5 AED per trip ($0.82 to $2.31)
• Buses: offering extensive city coverage, with fares similar to the metro
• Taxis: more expensive, with a base fare of 5 AED ($1.36) and 1.82 AED per kilometer ($0.50)

Ride-hailing services like Uber and Careem are also very popular in Dubai, offering a comfortable alternative to traditional taxis, although slightly more expensive.

For an expatriate, the monthly budget allocated to transportation can vary significantly depending on the chosen mode of travel. A regular public transport user can manage with 300 to 500 AED per month ($81.50 to $136), while a car owner will need to budget between 1,000 and 2,000 AED ($272 to $544) to cover gas, insurance, and maintenance.

Education in Dubai: A Significant Investment for Expatriate Families

For expatriates with children, education represents one of the most significant expenses in Dubai. The city is home to many renowned international schools, but their tuition fees can be exorbitant.

Annual tuition fees at international schools in Dubai typically range between 30,000 and 100,000 AED ($8,150 to $27,200) per child. These amounts can vary depending on the child’s age and the prestige of the institution. For comparison, these fees are significantly higher than those at most private schools in Europe.

It is important to note that these fees often cover only basic tuition. Extracurricular activities, uniforms, school supplies, and transportation costs can quickly increase the bill. Furthermore, many schools require non-refundable registration fees, which can amount to several thousand dirhams.

For families with multiple children, the cost of education can quickly become prohibitive. A family with two children enrolled in a reputable international school can easily spend between 150,000 and 300,000 AED per year ($40,750 to $81,500) on education alone.

Faced with these high costs, some companies include an education allowance in expatriate compensation packages. However, this practice is declining, leaving more and more families to finance their children’s education themselves.

There are a few less expensive alternatives, such as Emirati public schools, but these are primarily reserved for UAE citizens and instruction is in Arabic. A few private schools offer more moderate tuition fees, but they are often in high demand and places are limited.

Health and Insurance: Protecting Yourself in the Desert City

The healthcare system in Dubai is renowned for its quality, but it can be costly for expatriates. Since 2014, health insurance has been mandatory for all Dubai residents, including expatriates.

The cost of health insurance in Dubai can vary considerably, ranging from 5,000 to 15,000 AED per year ($1,360 to $4,080) depending on the level of coverage. The most basic insurance policies typically cover emergency care and routine consultations, while more comprehensive plans may include dental, vision care, and even medical evacuations.

It is important to note that many employers in Dubai provide health insurance as part of the compensation package. However, the quality and extent of this coverage can vary significantly. Therefore, it is crucial to understand the details of your insurance policy and budget for additional coverage if necessary.

Medical care costs in Dubai can be high, especially in the private hospitals and clinics frequented by expatriates. For example:

• A consultation with a general practitioner can cost between 200 and 700 AED ($54.40 to $190)
• An emergency room visit can easily exceed 1,000 AED ($272)
• Surgical procedures can cost tens of thousands of dirhams

Therefore, it is essential to have adequate health insurance to avoid significant unexpected expenses.

For medications, Dubai has many well-stocked pharmacies. Drug prices are generally regulated by the government but can be higher than in some European countries. It is recommended to budget approximately 200 to 500 AED ($54.40 to $136) per month for common health expenses not covered by insurance.

Leisure and Entertainment: Enjoying Dubai Life

Dubai is renowned for its high-end leisure and entertainment offerings. However, fully enjoying what the city has to offer can quickly weigh on an expatriate’s budget.

Dubai’s shopping malls are attractions in themselves, offering not only shopping but also varied entertainment. A trip to the movies costs on average 40 to 60 AED per person ($10.90 to $16.30), while a day at a water park can easily reach 300 AED ($81.50) per adult.

Dubai’s restaurants and bars offer a wide range of prices but tend toward the high end. A dinner for two at a quality restaurant can easily exceed 500 AED ($136), not including alcoholic beverages, which are particularly expensive. Friday brunches, very popular among expatriates, can cost between 300 and 700 AED per person ($81.50 to $190).

For those who enjoy sports, a membership at a good quality gym can cost between 300 and 800 AED per month ($81.50 to $217). Yoga, dance, or other sports activity classes are generally in the same price range.

Outdoor activities, like desert safaris or sea excursions, are staples of life in Dubai. These experiences can cost between 200 and 500 AED per person ($54.40 to $136), depending on the type of activity and the level of luxury chosen.

For an expatriate wishing to fully enjoy Dubai’s leisure offerings, it is recommended to budget at least 3,000 to 5,000 AED ($815 to $1,360) per month for leisure and outings. This amount can of course vary considerably depending on lifestyle and individual preferences.

However, there are ways to reduce these costs. Many establishments offer special deals on weekdays or during the off-season. Discount apps like The Entertainer are very popular among Dubai residents and can lead to substantial savings on restaurants, leisure activities, and wellness treatments.

Overall Budget: How Much is Needed to Live in Dubai?

After reviewing the main expense categories, it’s time to establish an overall budget for living in Dubai as an expatriate. It is important to note that this budget can vary considerably depending on lifestyle, family situation, and personal choices.

For a single expatriate living in a one-bedroom apartment in the city center, here is a monthly expense estimate:

• Rent: 7,000 – 12,000 AED ($1,900 – $3,260)
• Utilities (electricity, water, internet): 1,000 – 1,500 AED ($272 – $408)
• Food: 2,000 – 3,000 AED ($544 – $815)
• Transportation: 500 – 1,500 AED ($136 – $408)
• Health Insurance: 400 – 1,000 AED ($109 – $272)
• Leisure and Outings: 2,000 – 4,000 AED ($544 – $1,088)

Total Monthly: 12,900 – 23,000 AED ($3,510 – $6,250)

For a family of four (two adults, two school-aged children), the monthly budget might look like this:

• Rent (3-bedroom villa): 15,000 – 25,000 AED ($4,080 – $6,800)
• Utilities: 2,000 – 3,000 AED ($544 – $815)
• Food: 4,000 – 6,000 AED ($1,088 – $1,630)
• Transportation: 2,000 – 3,000 AED ($544 – $815)
• Health Insurance: 1,500 – 3,000 AED ($408 – $815)
• Education (2 children): 10,000 – 20,000 AED ($2,720 – $5,440)
• Leisure and Outings: 4,000 – 6,000 AED ($1,088 – $1,630)

Total Monthly: 38,500 – 66,000 AED ($10,470 – $17,940)

These estimates are based on a comfortable but not excessively luxurious lifestyle. It is entirely possible to live in Dubai on a more restricted budget by making different choices regarding housing, education, and leisure.

It is crucial to note that these budgets do not account for savings or investments. Many expatriates choose Dubai for its ability to offer significant savings opportunities due to the absence of income tax. Therefore, it is recommended to allocate an additional amount for savings and investments.

Conclusion: Dubai, an Investment for the Future?

Living in Dubai as an expatriate represents a significant financial investment, but also a unique opportunity to experience a culturally and professionally enriching experience. The city offers a high standard of living, modern infrastructure, and a dynamic economy that continues to attract talent from around the world.

However, it is crucial to approach this adventure with rigorous financial planning. The high costs of housing, education, and leisure can quickly erode the tax advantages offered by the absence of income tax. A golden rule for expatriates in Dubai is to aim for a net monthly income of at least 1.5 to 2 times the estimated budget to maintain a comfortable standard of living and be able to save.

It is also important to keep in mind that the financial situation in Dubai can evolve rapidly. The recent introduction of a 5% VAT and discussions about possible future taxes highlight the importance of staying informed and flexible in your financial planning.

Despite these challenges, Dubai continues to offer unique opportunities for those willing to navigate its complex economic landscape. Whether to accelerate one’s career, build wealth, or simply live an extraordinary life experience, Dubai remains a top destination for many expatriates worldwide.