Dubai is 26th globally in cost of living for expats
DUBAI 27 June 2018: There has been a decrease in the cost of living ranking for Dubai, according to Mercer’s 24th Annual Cost of Living survey.
Mercer’s survey reveals that Dubai dropped in global rankings from the 19th to the 26th most expensive city, indicating a decrease in the cost of living of Dubai compared to other cities in the world.
For instance, one litre of gasoline in Dubai costs US$0.61, while it costs $0.70 in New York and $1.65 in London.
Similarly, rent for a two-bedroom apartment of international standards costs an average of $2,995 in Dubai, while it costs an average of $5,700 in New York and $4,335 in London.
Most Expensive in Mideast
Despite the drop in the ranking, Dubai remains the most expensive city in the Middle East followed by Abu Dhabi, Riyadh and Beirut.
One of the reasons of the decreased relative cost of living is the depreciation of the USD and AED versus several major currencies the last 12 months. Another reason is the continuous decreases in rental accommodation costs. Given that rental prices are a significant factor in cost of living for expats in particular, the overall cost of living decreases as well.
Similar exchange rate and housing trends are observed throughout the region, and as a result, several Middle Eastern cities have fallen in the ranking.
Saudi Bucks Trend
The only country in the region that goes against the trend is Saudi Arabia, where subsidy cuts and taxes such as VAT have had an impact to such an extent that Riyadh has moved up the ranking from the 52nd to the 45th spot.
Rob Thissen, Senior Associate at Mercer in Dubai and responsible for Global Talent Mobility Services commented: “Given the decreased relative cost of living in Dubai compared to other cities, the UAE continues to be an attractive country for expat employees. In today’s world, multinational organizations are realizing the importance of a mobile workforce to effectively deploy talent.
“Understanding the cost of living in each city is an essential aspect of assessing expat remuneration packages. As a result of the lower cost of living in comparison to several other major cities, the UAE consistently attracts top talent from around the world, which allows for further economic growth and innovation.”
