Is it Expensive to Live in Dubai?

Dubai is proving to be a popular destination for expats, with an estimated 92% of the population consisting of those who relocated from elsewhere. What attracts them, though? Is it the hot weather, the sights or the glamorous location? At first glance, the zero-rate income tax may be enough to persuade some to up sticks and head abroad, but Dubai has one trick up its sleeve that many may not know of – Its cost of living. Dubai is expensive to live in compared to some cities, yet it is considerably cheaper than London, New York, Zurich, Hong Kong and Singapore.

In this blog, we look at the cost of living in Dubai and review some of the key areas you’d be spending your money on.

Using the latest data from Numbeo*, we looked at the typical living expenses in Dubai and discovered that you’d need approximately 32,695 AED(United Arab Emirates Dirham) per month in London to live the same lifestyle in Dubai with just 25,000 AED each month. So where does the money go?

At the bottom of this section, we’ll list the typical expenses you could encounter in Dubai each month and how much that equates to in pounds and dollars, so you can see just how much you’d be spending living in Dubai.

Your rent or mortgage in Dubai is likely to be the largest regular expense, and may mean that some of the other luxuries you’d like to enjoy might have to be put on ice. The locations closer to the city centre are clearly the most expensive, with 2-bed properties in Palm Jumeriah costing more than 20,000 AED per month in most cases. A property of the same size in Dubai Hills Estate could cost less than 12,000 AED each month. Compare these prices to those found in the UK, and you’ll notice property is considerably more affordable to rent in Dubai. A one-bedroom city centre apartment in Dubai costs, on average, £500 less per month than a similar property in England’s capital city.

What’s worth noting is that many landlords in Dubai request post-dated checks, dated for the future months’ rent payments. They then cash them on the relevant date.

The monthly cost of utilities in Dubai varies, with some services considered cheap when compared to those found in Europe or the USA. Broadband and mobile phone plans, on the other hand, are typically more expensive, especially when compared to the prices found in London. Where a mobile phone contract in the UK can cost just £15 per month, a similar contract in Dubai can cost more than £40 every month.

Food shopping, along with rent and utilities, is always among the biggest drains on finances, and in Dubai, you’ll find a variety of items considerably cheaper than you would elsewhere. At the same time, a few essentials will dent your bank balance a little more than they would back home. Overall, though, you should find the cost of food shopping in Dubai inexpensive, but staples such as bread, milk, cheese and chicken can all cost more in Dubai than in London.

A commute to work or a trip to explore some of the sights Dubai has to offer is incredibly cheap compared to the public transport options found in many countries. A monthly public transport pass, for example, will cost approximately 310 AED/£63, whereas in London, the same pass costs almost three times that amount. Taxis are a great way to get around, and in Dubai, they are an option worth considering that won’t take up as much of your income as you may expect. It’s been reported that a 1km taxi journey in London could cost almost 400% more than it would in Dubai.

It’s well known that childcare costs in many countries are obscene, with parents often having to rely on relatives to provide financial or practical support. In Dubai, Childcare can account for approximately 20% of an average monthly salary, whereas in London it can exceed 50% of a monthly income. It’s not unusual to see the monthly costs for childcare in Dubai exceed £600, which, compared to the UK (London) average of £1900, is incredibly cheap.

Eating out, going to the gym or going to the cinema are all activities we enjoy when we have spare time, but unfortunately, the cost of living can sometimes reduce just how much we can do these things. In Dubai, you’ll find that eating out is generally affordable, but a visit to the gym to burn off the calories may make you reconsider the portion sizes next time you order. A monthly gym membership can cost 315 AED or £65, whereas in London it averages around £50, although deals closer to £20 per month can also be found.

Using the data mentioned above, we’ve converted the average monthly living expenses in Dubai into pounds and dollars to illustrate how much you could be spending in your own currency whilst living in Dubai.

Dubai is often considered expensive when compared to the UK. This is perhaps largely shaped by the “Instagram lifestyle” that many people visiting the area create for themselves. However, the UK, and London in particular, are considerably more expensive than Dubai to live in. The data found on Numbeo indicates that:

Our chart below illustrates the average cost of living in Dubai compared to the living costs found in London and New York, two of the world’s most expensive cities.

As you can see, Dubai is considerably cheaper to live in than London and New York in a wide range of areas.  Mobile phone contracts and broadband are the main outliers with considerable differences noticeable.

The average net salary in Dubai is currently 14,949 AED per month. This equates to approximately £3,070 or $4,070. This is significantly less than the current London average of £3,554 per month, but with an overall cheaper cost of living, zero income tax and salary packages that provide housing allowances, transport allowances and health insurance, wages can go much further despite being lower than they are in London.

Whilst the general cost of living in Dubai is cheaper than what you may find in London, there is one expense that you may not have factored in. In the UK, the NHS provides free healthcare for all, but expats living in Dubai must pay for health insurance to gain access to the health services available in the city.

As soon as you gain residency, you can apply for a Dubai health card. It’ll cost approximately 320 AED per year (£65 approx) and will grant you access to cheaper subsidised medical services. This means that for a GP appointment, you can expect to pay 100 AED or less and for a specialist visit, approximately 150-300 AED (£31-£62). You’ll also need health insurance, a mandatory requirement for all Dubai residents. The costs for insurance vary significantly depending on the scope of coverage, your age, current health status and whether the plan is for single or family coverage.

At Expatriate Healthcare, we provide comprehensive international health insurance, suitable for use in Dubai. Our tailored plans enable you and your family to be fully covered and avoid costly medical expenses both in Dubai and further afield. Get your free quote today or view our plans to find the optimal coverage for you.

*data correct as of 27/11/2025