Is living in Dubai expensive?

The UAE is the first Arab in the quality of life for expatriates. So, Is living in Dubai expensive? this is why the UAE has become the lowest cost of living for expatriates. Many indicators show that the cost of living in Dubai 2020 will decrease – a lot – from previous years, due to many reasons that will contribute to high salary ratios as well as a decline in real estate prices in addition to creating new job opportunities to help citizens and ex-pats to bear the cost of living in this Tourist country.

As the UAE in general and Dubai, in particular, are among the most attractive countries for expatriates, both those who want to tourism and enjoy the scenic views of them, or who want to work, especially with the growth of labour markets in Dubai.

The cost of living in Dubai 2020

In this article, we review with you everything related to the cost of living in Dubai 2020, where we talk about the following points:

The elements that affect the cost of living
  1. Dubai job market
  2. The average salary in Dubai
  3. Average prices for restaurants and consumer goods in them
  4. Average real estate rents
  5. A quick look at the Expo

Is living in Dubai expensive?

Although VAT was introduced earlier this year, the UAE ranked the lowest cost of living for expatriates, with Dubai and Abu Dhabi among the 25 most expensive cities in the world.

Market analysts attributed this to lower rents, strengthening the dollar-denominated dirham against other currencies and lower oil prices. Noting that the value-added tax will not have a significant impact on the cost of living in the UAE, because recent measures announced by the UAE government. Such as freezing and reducing some fees in various sectors of the economy, will have a much greater positive impact on the financial conditions of residents in the country.

Anita Yadav, Head of Fixed Income Research at Emirates NBD Research, said that real estate rents have declined, and this is the biggest reason for the lower cost of living in the Emirates. Other factors include the drop in oil prices last year and the strengthening of the UAE dirham, which is pegged to the US dollar, which has led to cheaper imports of food and other materials.

“Last year, oil prices remained low and lower rents helped reduce the cost of living. Rents, the largest burden on residents in the UAE, decreased by 10 to 15 percent last year, and this year it decreased by 5 to 10 percent, and the strength of the dirham means a decrease in the cost of food imports, which affects the cost of living in the UAE.

Rajiv Kumar, Chief Executive Officer of Philip Capital, drew attention to lower rents as one of the biggest factors that made UAE residents more affordable. He also welcomed the recent steps taken by the government to freeze or reduce fees in various sectors.

How did the cost-of-living decrease in the UAE this year?

Food prices in the UAE this year showed a decrease compared to prices in the same period last year.

According to Dr. Sidwin Fernandez, economist and vice-chancellor of Middlesex University Dubai.

“Food prices around the world are on a downward trend, and the Food Price Index of FAO has decreased by 3.6 percent compared to March 2018. Prices are not expected to rise Food around the world. ”

He added: “In the UAE, food prices showed a slight decrease of 0.74% compared to March 2018, which reflects weak demand conditions.”

On the impact of value-added tax on prices, Dr. Fernandez said:

“The implementation of the value-added tax in January 2018 coincided with the deflationary trend in fuel and commodity prices around the world and an abundance of the supply of housing in the UAE. As a result, the impact of value-added tax on prices has not been reflected. In the UAE“.

Another good news is that the cost of living has decreased in the Emirates compared to last year. Dr. Fernandez said that the Consumer Price Index (CPI) fell 2.5 percent in March on an annual basis, according to Gulf News.

Read Also: Dubai first regionally in the global financial centres’ index
Read Also: Dubai residents cheer healthcare workers from balconies
You might also like