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July 31, 2025

Cost of Living in Dubai: A Complete Guide for Expats and Newcomers

Cost of Living in Dubai: A Complete Guide for Expats and Newcomers

At Dar Al Tharwa, we receive a lot of questions every day from people curious about living in Dubai. Today, we’re going to answer all your questions about the cost of living in this dynamic city.

Dubai has become a dream destination for many people around the world. Its attractive tax laws, modern lifestyle, and multicultural environment make it one of the most desirable places to live. Even some of the world’s biggest celebrities, like Cristiano Ronaldo, have praised Dubai many times. For example, at the Globe Soccer Awards held in Dubai, Ronaldo said:
“Dubai is one of the best cities in the world. I come here every year and enjoy being here.”
In another interview, he added:
“Dubai is one of my favorite cities; a safe, modern, and energetic place.”

But it’s interesting to know that Dubai wasn’t always this luxurious and developed. Just a few decades ago, it was mainly a desert with very few people living here. No one could have imagined that one day it would grow into such a global hub for business, tourism, and living.

Today, Dubai has become home to many multinational companies, especially in the investment and technology sectors. These companies have helped the city flourish and become a magnet for startups, entrepreneurs, and migrants looking for new opportunities.

One of Dubai’s main attractions is that it doesn’t have personal income tax, which means you get to keep almost all of your earnings. This tax-free environment attracts many people who want to build a better life with more financial freedom.

If you are considering moving to Dubai, it’s important to understand the costs involved in daily living. This includes rent, food, transportation, and other essentials. In this video, we will cover all these costs in detail to help you plan your budget realistically.

Housing is usually the biggest expense. Depending on where you choose to live—whether in more affordable neighborhoods or in upscale areas—the cost can vary a lot. For example, areas like Deira and Bur Dubai are popular among many migrant communities, including Iranians, Afghans, and Pakistanis, offering relatively affordable housing options. Meanwhile, neighborhoods like Dubai Sports City attract a younger, more international crowd.

Food expenses also depend on your lifestyle. Eating out in Dubai can be expensive if you prefer restaurants in luxury malls, but there are many affordable local markets and eateries as well.

Transportation is another important cost to consider. As a new resident, you might not be able to rent a car immediately, so public transport like the Dubai Metro is your best option. The metro is very efficient, with trains arriving every two minutes and connecting most parts of the city. However, taxis are expensive and usually start at a base fare of 25 AED.

Overall, living in Dubai offers many opportunities for both wealthy individuals and middle-class families. With careful budgeting and understanding of the costs, you can enjoy a comfortable and even luxurious lifestyle here.

In the following sections, we will dive deeper into each of these categories, we will be explain in the following.

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