Abu Dhabi and Dubai have become more affordable cities for expatriates this year, according to a global study.
Both Middle East powerhouses are now cheaper for expats amidst the push to attract critical talent, more remote workers and freelancers and on the back of cheaper real estate, deflation and dollar movements.
The UAE capital now ranks 56th globally for most expensive cities to live in this year, according to Mercer’s annual cost of living survey – up 17 places from the 2020 ranking; while Dubai comes in at 42nd – rising 19 places from its position 12 months ago.
“For over two years, we have been witnessing deflation across Dubai and Abu Dhabi. This can be attributed to a range of factors, including a decline in the real estate sector, which has made expatriate accommodation cheaper,” said Vladimir Vrzhovski, global mobility practice lead, Middle East and Africa at Mercer.
“Moreover, a drive to enable remote and flexible working is driving mobility and cementing the UAE’s reputation as a destination of choice for expatriate workers.”
Abu Dhabi now ranks 56th globally
Villa rental prices in Dubai have increased slightly as the property market recovery continues. But overall, visa reforms, including issuing 10-year residency visas and welcoming remote workers, have opened doors to more people wanting to relocate to the UAE. Property consultants previously told Arabian Business that more cash-rich Indians had begun exploring moving to Dubai following the visa rule changes.
Around the world
From a cost of living perspective, the two UAE cities are now more attractive than other global hubs including London, San Francisco, Paris and Dublin.
In the Middle East and North Africa, Beirut rose 42 places in the rankings due to hyperinflation caused by twin political and financial crises that spurred its currency to collapse. It now ranks as the third most expensive city on a global scale.
Riyadh now ranks 29th globally. Image: Bloomberg
Riyadh, now ranked 29th, moved up two spots as Saudi Arabia increased VAT to 15 percent. However, Crown Prince Mohammed bin Salman has said that the VAT hike is temporary and in the long-term it will be lowered to 5 to 10 percent.
Turkmenistan’s capital Ashgabat took the top spot as the most expensive city for international employees, followed by Hong Kong, Beirut, Tokyo, Shanghai, Singapore and Beijing.
Follow us on
