Cost of Living in Dubai

In this article, we will explore the cost of living in Dubai. Especially if you have children, it’s important not to underestimate the cost of living. Although there is no income tax in Dubai, there are many other cost factors that we will thoroughly examine here.

Cost of Living in Dubai by Category

  • Rent Costs
  • Business License & Visa Fees
  • Electricity and Water
  • Groceries
  • Health Insurance
  • Internet & Smartphone
  • Kindergarten & School

Rent Costs

In Dubai, rental prices vary significantly based on location, property type, and market trends. Here’s an updated overview:

Apartment Rentals:

Jumeirah Village Circle (JVC): Studio apartments start at approximately AED 38,000 per year, while one-bedroom units begin around AED 50,000.

The Palm Jumeirah: One-bedroom apartments typically start at AED 120,000 annually.

Dubai Marina: One-bedroom apartments have starting rents of about AED 70,000 per year.

Downtown Dubai: One-bedroom apartments generally begin at AED 85,000 annually.

These figures are approximate and can fluctuate based on factors such as the building’s age, developer reputation, and current market demand. Given Dubai’s rapid growth and high demand for centrally located apartments, rental rates can increase swiftly.

Villa Rentals:

For those seeking more spacious accommodations, villas in exclusive areas like The Palm Jumeirah, District One, or Al Barari start at around AED 800,000 per year. 

Additional Considerations:

Dubai offers housing options to suit various budgets, with the property’s age and location being critical determinants of price. For a comprehensive overview of current rental prices, platforms like Bayut provide detailed listings and market insights. 

If you have further questions about renting or purchasing property in Dubai, we can connect you with professional contacts to assist in your search.

Business License & Visa Fees

When establishing a business in Dubai, it’s essential to incorporate annual licensing fees into your financial planning. These fees start at around AED 13,000 per year but can increase depending on the number of visas associated with the license. To manage these expenses effectively, consider setting aside approximately AED 1,200 to AED 1,350 monthly, ensuring you can comfortably meet the annual payment.

Additionally, visa renewals are required every two years, with each renewal costing around AED 3,600. Proactively budgeting for both licensing and visa renewals will help maintain your business’s compliance and operational continuity.

Electricity and Water

Electricity and water costs in Dubai are relatively low compared to global averages, making it more affordable to manage utilities in both residential and business settings. Currently, electricity costs AED 0.28 (approximately 7 cents as of January 2024) per kilowatt-hour, and water costs about AED 0.036 (around 1 cent) per Imperial Gallon (approximately 4.5 liters).

Dubai’s utility rates are regulated by the Dubai Electricity and Water Authority (DEWA), which ensures consistent and efficient service. These affordable rates contribute to Dubai’s appeal as a destination for both individuals and companies seeking cost-effective living and operating conditions.

Groceries

In Dubai, the cost of groceries varies depending on the type of product and its origin. Staple items like rice, potatoes, and pasta are often more affordable, especially when sourced locally or from nearby regions. For instance, a kilogram of rice typically costs around 9.46 AED, while potatoes are priced at approximately 4.21 AED per kilogram.

However, many food products are imported, leading to higher prices compared to other countries. For example, a liter of milk can cost about 6.74 AED, and a loaf of fresh white bread (500g) is around 5.61 AED.

When dining out, prices also vary based on the establishment. A meal at an inexpensive restaurant may cost between 20 to 100 AED, with an average of around 40 AED. In contrast, a three-course meal for two at a mid-range restaurant typically ranges from 175 to 500 AED, averaging about 300 AED.

It’s important to note that while some items are more expensive due to import costs, Dubai offers a range of options to suit different budgets, from local markets to high-end dining experiences.

Health Insurance

Die Kosten für eine Krankenversicherung in Dubai variieren je nach gewähltem Versicherungsplan und Leistungsumfang. Basisversicherungen beginnen bei etwa 500 bis 700 AED pro Monat und bieten grundlegende medizinische Behandlungen mit Deckungssummen von rund 150.000 AED.

Erweiterte private Krankenversicherungen können deutlich höhere Prämien haben.

Internet & Smartphone

In Dubai, home internet and mobile phone plans are generally more expensive than in Germany. For home internet, you should budget between AED 200 and AED 400 (approximately EUR 50 to 100) per month. The primary providers are Etisalat and Du, both offering various packages to suit different needs. For instance, Etisalat’s eLife Ultra Starter plan provides internet speeds up to 750 Mbps, suitable for streaming 4K content on multiple devices simultaneously.

Regarding mobile phone plans, expect to spend around AED 150 to AED 300 per month. In addition to Etisalat and Du, Virgin Mobile offers flexible and customizable plans. Virgin Mobile allows users to build their own plans, choose their numbers, and offers instant activation with UAE PASS.

It’s advisable to compare the offerings from these providers to find the plan that best fits your requirements and budget.

Kindergarten & School

In Dubai, public schools are primarily available to Emirati nationals, so expatriate families typically enroll their children in private institutions. At the German International School Dubai, annual tuition fees for the 2023-2024 academic year are as follows:

Kindergarten (KG1 and KG2): AED 38,760 per year

Primary School (Grades 1 to 4): AED 45,730 per year

Secondary School (Grades 5 to 10): AED 62,656 per year

Secondary School (Grades 11 and 12): AED 73,227 per year

These figures are sourced from the school’s official fee table for the 2023-2024 academic year. 

It’s important to note that tuition fees in Dubai can vary significantly based on the institution and curriculum. While some schools may offer lower fees, others, especially those with international curricula, may charge higher rates.

On average, parents should anticipate monthly educational expenses ranging from AED 4,000 to AED 7,500 per child. This estimate encompasses tuition and may also include additional costs such as uniforms, books, and extracurricular activities.