Cost of Living in Dubai in 2024-2025
Dubai is a top destination for expatriates and entrepreneurs looking to settle or expand their business in a tax-friendly environment. But what is the real cost of living in Dubai? If you’re considering setting up a company in Dubai, or simply relocating for personal or professional reasons, understanding the cost of living is an essential step. In this article, we break down the main expenses in Dubai for 2024-2025 to help you plan your expatriation with peace of mind.
Why Choose Dubai as a Destination to Live and Do Business?
Dubai stands out for its absence of income tax and competitive tax rates for businesses on the mainland (12%) and in Free Zones (0% corporate tax). These tax advantages, combined with world-class infrastructure and unique business opportunities, make it a must-visit destination for expatriates and investors. Despite an increase in the cost of living since 2023, Dubai remains more affordable than other major cities like London or Singapore. This combination of economic benefits and a luxurious lifestyle continues to attract professionals and families from around the world.
Housing in Dubai: A Key Budget Item
The cost of housing varies significantly depending on the neighborhood, property size, and amenities offered.
High-End Neighborhoods
Dubai Marina, Downtown Dubai, Arabian Ranches.
Estimated Monthly Rent
1-Bedroom Apartment: 6,000 to 10,000 AED
2-Bedroom Apartment: 10,000 to 16,000 AED
3-Bedroom Villa or Apartment: 14,000 to 31,000 AED
Platforms like Bayut, Dubizzle, or Property Finder make it easier to find housing that fits your budget.
Utilities and Connectivity
Dubai residents pay fees for essential services such as electricity, water (DEWA), internet, and mobile phone services.
Internet and TV: Plans offered by Etisalat or Du, starting from 300 AED per month.
Mobile Phone: Plans range from 200 to 500 AED depending on data needs.
Food: For All Tastes and Budgets
Dubai is a culinary paradise with options for all budgets:
Fast Food: 30 to 50 AED
Restaurant Dinner: 60 to 90 AED
Monthly Grocery Expenses: 1,400 to 2,700 AED, depending on dietary habits and the number of people.
To save, local markets and promotions in large supermarkets like Carrefour or Lulu Hypermarket are ideal.
Healthcare: Quality and Accessibility
Dubai offers high-quality healthcare, but health insurance is mandatory for all residents.
Monthly Health Insurance: 700 to 1,600 AED, depending on the coverage chosen.
Expatriates can choose between public (more affordable) and private hospitals for medical care.
Transportation: Convenient and Flexible
Dubai has a well-developed public transport system, but many prefer owning a car for more flexibility.
Metro and buses: From 3 AED per trip with a NOL card.
Taxi (Careem or others): 12 AED for pick-up, then 1.97 AED/km.
Owning a car: Registration fees around 400 to 600 AED, plus fuel and insurance costs.
Why Dubai Is Still So Attractive?
In conclusion, despite a relatively high cost of living, Dubai remains an attractive choice for expatriates due to its absence of income tax, modern infrastructure, and unmatched business opportunities. Whether you are an entrepreneur, freelancer, or employee, this city offers an ideal environment for success.
At Diwan Consulting, we support expatriates and entrepreneurs in settling in Dubai: company formation, obtaining a residence visa, opening a bank account, and much more. Contact our experts for personalized support and discover why Dubai is the ideal destination for your expatriation and business project.