What’s the Real Cost of Living in the UAE? A Guide for Global Families and Professionals

Introduction

For high-income earners, entrepreneurs, and globally mobile professionals, the United Arab Emirates (UAE) offers a compelling mix of modern infrastructure, zero income tax, and strategic connectivity between East and West.

But beyond the headline benefits, the real cost of living in the UAE varies dramatically based on lifestyle, location, and planning. Whether you’re moving for business, setting up a family base, or restructuring your tax residency, this guide offers a detailed breakdown of what to expect, how to budget, and where smart decisions can save you time and money.

Through our Private Office, Kingsbury & Partners connects clients to a curated partner network offering relocation planning, visa structuring, accommodation sourcing, and school placement support.

1. Accommodation: Location Drives Cost

Accommodation remains the largest personal expense in the UAE, with huge variation based on emirate, district, and property type.

Tips for Value:

• Annual payments often yield rental discounts (vs. monthly)
• Newer areas (e.g. Al Furjan) offer better price/quality balance
• In Abu Dhabi, consider Saadiyat Island for families; Reem Island for professionals

We work with real estate partners to assist with negotiating contracts, inspecting properties, and setting up utility connections—ensuring a smooth landing.

2. Utilities & Connectivity: Climate-Driven Costs

The UAE’s desert climate and heavy reliance on air conditioning push utilities higher than many expat destinations.

Monthly estimates (family of 4 in a villa):

• Electricity & Water (DEWA / ADDC): AED 1,200–2,500
• Internet (Etisalat / du): AED 400–600
• Mobile (2 adults): AED 300–600

Insights:

• Choose buildings with chiller-inclusive AC systems for predictable costs
• Solar and insulation upgrades (for villa owners) are becoming more popular
• Internet speeds are excellent but packages are pricier than in Europe
• Utilities come with a Municipality fee that totals 5% of your total rent regardless of utility usage.

3. Schooling: Premium Education at a Premium Price

Private education is mandatory for expatriate children and represents a major cost, especially for families with multiple children.

Additional costs: uniforms, transportation, extra-curriculars, application fees (AED 500–2,500 per child).

4. Groceries & Essentials: Imported vs Local

Monthly grocery costs for a family of four typically fall between AED 2,500–4,500, depending on shopping habits.

Price examples:

• 1L fresh milk: AED 7.50
• 1kg chicken breast: AED 24–30
• 1kg apples (imported): AED 10–15
• 1kg tomatoes (local): AED 4–6

Smart savings:

• Choose Union Coop and Lulu for affordability, or Vida for the cheapest option.
• Use local brands (e.g. Al Ain, Al Rawabi) to reduce dependence on imports
• Consider bulk buying clubs and online grocery platforms

5. Dining & Leisure: From Street Food to Sky Bars

Dining options range from budget to ultra-luxury. The absence of service tax or alcohol tax (in most emirates) adds value.

Leisure costs:

• Gym memberships: AED 250–800/month
• Golf clubs: AED 8,000–20,000/year
• Cinema ticket: AED 40–60
• Spa treatments: AED 300–700

6. Transport: Low Fuel, High Convenience

Petrol prices remain among the lowest globally (approx. AED 3.10/litre) and car ownership is widespread.

• New SUV: AED 120k–180k
• Used sedan: AED 25k–50k
• Insurance: AED 3,000–6,000 annually
• RTA car registration: AED 400–800/year

Public Transport:

• Metro/bus monthly pass: AED 300–400
• Taxis: AED 15–25 for short trips
• Careem/Uber: Reliable but more expensive than local taxis

We assist newcomers in choosing between leasing vs. buying, and provide access to car brokers and insurance agents.

7. Healthcare: Private but World-Class

While emergency care is available to all residents, private medical insurance is required and essential for quality healthcare access.

• Basic expat plan: AED 5,000–10,000 p.a.
• Premium international cover: AED 20,000+ p.a.
• GP consultation (private): AED 250–400
• Specialist consultation: AED 400–800

Many families opt for international policies covering multiple jurisdictions, especially those with cross-border lifestyles.

8. Taxes & Residency: The Key UAE Advantage

The UAE remains one of the world’s most tax-efficient jurisdictions.

• 0% Personal Income Tax
• 0% Capital Gains Tax
• 0% Wealth / Inheritance Tax
• 5% VAT on most goods and services

Smart tax planning—especially for those coming from high-tax countries—can deliver significant long-term gains.

Many expats have plenty of additional disposable income but are required to invest as there are no or few pension and other benefits. Connect with our wealth management partner for straightforward, fixed-fee investment and wealth advice.

Final Thoughts: Cost-Effective Living, If Structured Well

The UAE combines premium living standards with strategic tax advantages—but optimising your lifestyle here requires good information, expert support, and early planning.

From understanding housing and school fees to structuring your residency and insurance, the difference between reactive and proactive planning can be six figures or more per year.

At Kingsbury & Partners, we work with a network of trusted partners to deliver a frictionless relocation experience. Whether you're moving for business, family, or wealth planning reasons, our role is to ensure the process is structured, efficient, and value-driven.