Are you a senior international professional about to move to Dubai?
Perhaps you have recently arrived to start a new chapter of your career?
I moved here in 2013.
I planned my move meticulously to ensure I was able to factor new costs into my financial plan.
This blog is designed to help you make the most of this opportunity...
By looking at three costs of living in Dubai you are almost certain to incur.
In Mercer's 2024 Cost of Living Index, Dubai has climbed to the 15th position globally, making it the most expensive city in the Middle East for international employees. This is a notable rise from its 18th place in 2023 and 31st place in 2022.
The increase in Dubai's ranking is primarily driven by robust economic growth and significant rises in rental prices, which have surged due to high demand and limited supply. Additionally, the costs of various goods, such as groceries and personal care items, have also contributed to the overall higher cost of living in Dubai.
The lifestyle and appeal of Dubai can easily diminish your earning potential.
Especially for those living in Dubai without a financial plan (or a plan which isn't set up correctly).
Here are three points you need to consider:
1. Property
After growing by 16.3 per cent in 2023, following an extraordinary 44.4 per cent increase during 2022, Dubai’s prime residential market has grown by 26.3 per cent over the last 12 months, easily making it one of, if not the fastest, growing prime residential market globally.
Palm Jumeirah villas, which have recently set records for the most expensive sale and rental, remain among the most expensive per square foot in the city.
The price of high-end Dubai properties is forecast to rise 5% in 2024, as strong interest from foreign buyers continues to boost the market.
Dubai's safety, privacy, low-tax living, and favourable weather are also key attractions for wealthy clients seeking high-budget properties
Is property a sensible investment? Download our free property guide for more information.
2. Education
The Knowledge and Human Development Authority (KHDA) is the body responsible for the growth and quality of private education in the Emirate. Here are some of their key stats about schools in Dubai in the academic year 2023 - 2024:
- 220 private schools, 17 curricula
- Five new schools opened
- 365,000 students in Dubai private schools
- 33,000 Emirati students
- 4.5% increase in student enrolment since June 2023
- 187 student nationalities
UK curriculum schools remain the top choice for Dubai’s private school students, with around 37% choosing it. The Indian curriculum is the second most popular, followed by the American curriculum. The International Baccalaureate and UK/IB hybrid curriculum round up the top five curriculum choices.
Thinking about your financial plan...
School fees in Dubai have risen significantly over the last 10 years.
Depending on the level of education; kindergartens (pre-schools), primary, secondary and high schools will vary hugely in terms of fees.
Fees at Dubai's top schools by year group, in AED.
Edarabia, an education site in the Middle East, showcases all private schools in Dubai, enabling you to filter by tuition fees, curriculum, rankings and ratings.
Admissions for the top international schools in Dubai tend to have waiting lists so it's recommended that parents apply well in advance.
3. Lifestyle
Travel
Sixty years ago Dubai was little more than a village. It's airport was a single runway on a salt flat.
Fast forward to now and Dubai International Airport is the busiest in the world in terms of international travel (with a capacity of around 5.2 million seats per month).
Dubai is the perfect place to live if you love to explore the world, but airline fares continue to rise.
Eating out
Between them, the best restaurants in Dubai serve virtually every national cuisine from around the world, including many specialising in Dubai’s own Arabic delights.
Dubai does not have its own Michelin Guide, but instead it imports chefs or restaurant chains that have previously been recognised elsewhere by this prestigious publication.
One of my favourites is Le Petit Maison, where prices average 280 AED (76 USD) for a signature dish.
Entertainment
You may also like to visit Dubai Opera, where tickets range from where ticket prices range from 100 AED (27 USD) to 450 AED (123 USD), depending on the event and seating preference.
For those keen to keep up their sporting passions, you are spoiled for choice with golf clubs (Dubai is slowly growing as the new modern epicentre of the golfing world), sailing clubs, polo clubs and many more.
Not to mention, some of the world's leading sporting events take place in the Emirate.
Finally, I wanted to touch on cars.
You won't be in Dubai long (the airport car park I dare say), before you see your first supercar. The city is known for them.
But for those of us looking for something more day-to-day...
The average cost of a Land Rover ranges from 210,000 AED (57,000 USD) to 460,000 AED (125,000 USD).
For those looking to spend less on such a depreciating asset, one of the most popular cars in the UAE is the Mitsubishi Pajero, which has a starting price of around 130,000 AED (35,500 USD).
(For those who fancy a chrome-plated Rolls Royce Phantom, you can get that too.)
So you see, living expenses vary hugely in Dubai, depending on how you prioritise your spending.
Finally, a word on financial advice in Dubai
If you’re looking for financial advice while working in Dubai, the most important thing is to find a professional, fiduciary financial planner, backed by an organisation you can trust.
(A fiduciary basically means 'trusted').
Don't assume the rules and regulations governing financial advice are the same as they are 'back home.'
Tread with caution.
How to make the most of your time in Dubai
Living in Dubai is amazing.
And the cost of living in Dubai is manageable.
I have no plans to move back home.
Like me, our clients have clear plans in place which puts their life into numbers.
Taking into account huge life events, like moving countries.
If you want to make the most of your time in the Emirate financially speaking, you have to be disciplined and commit to investing on a regular basis.
If you need a little help to stay focused on your long-term goals, my team can help.
We come highly recommended.
