Cost of Living in the UAE 2025 |  Expats and Digital Nomads

Cost of Living in the UAE in 2025 for Singles and Digital Nomads. For a single individual, the average monthly expense is around AED 4,000 ($1,100), and for a family of four, it is AED 14,000 ($3,800). In Dubai, a single person can expect to spend AED 7,300 ($2,000), and for a family, the cost approximates to AED 13,000 ($3,540).

When it comes to living expenses in Dubai, it is the most expensive, closely followed by Abu Dhabi. Sharjah, Ajman, and Ras al-Khaimah are in the more affordable range. Digital nomads do get tax benefits. But business registration in the UAE, additional expenses like coworking spaces, and the UAE Golden Visa do take a toll on the budget.

Overview of UAE Cities: Dubai, Abu Dhabi, and Sharjah

Aside from being the number one activity place in the UAE, it is also a world center of tourism, tech, and security. Addressing the main cities:

1. Life in Dubai is comparatively more costly due to its existing development and life venues such as the Burj Khalifa and Dubai Marina. The approximation of life in Dubai includes 4000 dirham for living expenses separate from rent, reaching 1100 dollars, and a family of four averaging 3500 dirham for a total of 70 percent of the Dubai living cost. Partially due to its numerous options for setupand coworking spaces, it is quite a favorite for remote workers.
2. Aside from being the capital of the UAE, it is also one of the best cities to live in and the safest in the world. Abu Dhabi makes living its best due to its high life quality and variety of activities and options. For a new resident, living rent-free in Abu Dhabi for the first 3.5 months is a good option, as paying for living costs 3500 dirhams. For a family, this would sum up to 11,000 dirham for 3 months, providing a total of 18,000 dirham.
3. Less costly than previous verhupees, October 10, 2023, Sharjah is a good blend of affordable living and comfort, averaging at 2.9k AED and 10.6k AED for a family.
4. Last from the above would be the most costly in comparison to previous rent, listing Kappa and Ras al-Khaimah last. It is a great option for expats, providing comparable services to Abu Dhabi and Dubai.

Each emirate offers unique cultural experiences, investment opportunities, and expat-friendly environments, making the UAE a top choice for relocation.

Housing and Real Estate Costs in the UAE

Living costs, houses, and rentals in the UAE that are relevant to the monthly salary. Real estate prices are significantly lower in other emirates relative to Dubai, with more affordable housing options located in peripheral Dubai and Sharjah. Here are the approximate costs:

Real Estate Prices in Dubai

• City Centre: AED 22,000 ($6,000) per sqm for property purchase; AED 15,000 ($4,000) monthly for a 3-bedroom apartment.
• Outside City Centre: AED 12,500 ($3,400) per sqm; AED 8,174 ($2,230) for a 1-bedroom apartment.
• Popular Areas: Jumeirah Village Circle offers affordable rent at AED 10,450 ($2,846) monthly, while Business Bay and Burj Khalifa areas are pricier, with properties costing up to AED 2,500,000 ($680,800).

Real Estate Prices in Abu Dhabi

• City Centre: AED 18,300 ($5,000) per sqm; AED 10,400 ($2,800) for a 3-bedroom apartment.
• Outside City Centre: AED 15,700 ($4,300) per sqm; AED 4,900 ($1,000) for a 1-bedroom studio.
• Leasehold Restrictions: Only leasehold purchases (up to 99 years) are available, unlike Dubai’s freehold options.

Real Estate Prices in Sharjah

• City Centre: AED 24,200 ($6,600) per sqm; AED 5,900 ($1,600) for a 3-bedroom apartment, nearly three times cheaper than Dubai.
• Outside City Centre: AED 16,700 ($4,500) per sqm.

For digital nomads, areas like Jumeirah Lakes Towers (JLT) and Dubai Marina are popular for their proximity to coworking spaces and vibrant expat communities. Renting in Sharjah or Ajman can save up to 30% compared to Dubai.

Utility Costs in the UAE

Utility expenses in the UAE include electricity, water, cooling, waste collection, and internet and differ from emirate to emirate and from one household to another in family size. Here are the approximate costs:

• A 3-bedroom apartment in Dubai costs AED 740 ($200) monthly. For internet services, 8 Mbps costs AED 324 ($88) in Dubai.
• In Abu Dhabi, an internet and mobile service bundle costs AED 1,100 ($300) for a family. A single person living in a studio pays AED 580 ($158).
• In Sharjah, for a 3-bedroom apartment, internet, and mobile services, one pays AED 725 ($197) and AED 600 ($150) for mobile.

The Dubai Electricity and Water Authority (DEWA) is responsible for water and electricity services. However, cooling expenses, especially in the summer, can add extra costs. For digital nomads, a robust remote work setup is imperative and necessitates high-speed internet, which costs AED 300-400 ($82-109) monthly.

Food and Grocery Expenses in the UAE

Food expenses in the UAE depend on whether you cook at home or dine out. Here’s an approximate cost breakdown:

Grocery Costs

• Dubai: An average food basket (rice, milk, bread, eggs, apples, chicken) costs AED 74 ($20).
• Abu Dhabi: AED 67 ($18) for a similar basket.
• Sharjah: AED 57 ($16), the most affordable.

Sample grocery prices:

• 1 liter of milk: AED 7 ($2)
• 12 large eggs: AED 13 ($3.50)
• 1 kg of apples: AED 9 ($2.45)
• 500 g of chicken breast: AED 18 ($5)

Dining Out

• Sharjah: A three-course meal for two costs AED 98 ($27).
• Abu Dhabi: AED 280 ($76) for a similar meal.
• Dubai: AED 300 ($82), reflecting its luxury lifestyle.

For a single person, a daily menu (breakfast at home, cappuccino to go, lunch, and dinner out) averages:

• Dubai: AED 216 ($59) daily, or AED 6,480 ($1,770) monthly.
• Abu Dhabi: AED 187 ($51) daily.
• Sharjah: AED 84 ($23) daily.

Digital nomads can save by cooking at home or choosing affordable eateries in Sharjah or Ajman.

Transportation Costs in the UAE

The UAE’s public transportation is efficient and affordable, with options like the Dubai Metro, buses, and taxis. Here are the approximate costs:

Public Transport

• Dubai: A monthly pass costs AED 300 ($82); a taxi is AED 3 ($0.82) per km.
• Abu Dhabi: Monthly pass at AED 90 ($25); taxi at AED 2 ($0.50) per km.
• Sharjah: Monthly pass at AED 210 ($57); taxi at AED 2.75 ($0.75) per km.

Car Ownership

• A new car (e.g., Volkswagen Golf) costs around AED 96,151 ($26,200).
• Fuel: AED 2.88 ($0.80) per liter, with prices like AED 3.02 ($0.82) in June 2025.
• Annual maintenance and insurance: AED 37,000 ($10,000).

A trip from Dubai to Abu Dhabi by bus costs AED 20 ($5), while Dubai to Sharjah is AED 7 ($2). Digital nomads relying on coworking spaces in Jumeirah Lakes Towers or Business Bay may prefer public transport to save costs.

Healthcare Costs for Expats and Residents

Healthcare quality in the UAE is world-class, with over 200 JCI-certified hospitals. However, private healthcare is mandatory for expats, with public services reserved for UAE nationals. Below are the approximate costs:

Health Insurance Costs

• Single Person: Starts at AED 558 ($152) annually (e.g., Sukoon Health Insurance); extended coverage at AED 1,836 ($500).
• Family of Four: Around AED 3,672 ($1,000) annually for extended coverage.
• Fines for Non-Compliance: AED 500 ($136) monthly without insurance, mandatory from 2025.

Sample providers:

• GIG Gulf Medical Insurance: AED 675 ($184) per person.
• Abu Dhabi National Insurance Company: AED 660 ($180) per person.

Digital nomads should opt for extended coverage (e.g., AED 184,000 ($50,000) annually) to ensure comprehensive care, especially in Dubai or Abu Dhabi.

Education Costs in the UAE

Education prices in the UAE vary by level and emirate, with private schools dominating due to free public education for UAE citizens only. Mention the approximate cost:

Preschool Education

• Sharjah: AED 1,000 ($280) monthly per child.
• Abu Dhabi: AED 2,400 ($660) monthly.
• Dubai: AED 2,900 ($790) monthly, the most expensive.

Primary and Secondary Schools

• Sharjah: AED 18,600 ($5,000) annually per child (e.g., Beaconhouse Al Khaleej International School).
• Abu Dhabi: AED 45,900 ($12,500) annually (e.g., Brighton College Abu Dhabi).
• Dubai: AED 13,000-65,000 ($3,540-17,449) annually (e.g., Gems Wellington International School).

Higher Education

• Top universities like Khalifa University and American University of Sharjah charge AED 38,000-70,000 ($10,348-19,062) annually.
• University of Birmingham in Dubai: AED 77,030-104,520 ($21,000-28,463).

For digital nomad families, Sharjah offers the most affordable education, while Dubai provides top-tier international schools with British or American curricula.

Entertainment and Leisure Expenses

The UAE offers diverse leisure activities, from Yas Circuit events to Ferrari World visits, catering to expats and families. Here are the approximate costs:

• Movie Tickets: AED 45 ($12) in Sharjah; AED 50 ($14) in Dubai and Abu Dhabi.
• Sports Clubs: Monthly fees start at AED 734 ($200) in Sharjah/Abu Dhabi and AED 1,100 ($300) in Dubai.
• Family Entertainment: A week of museums and cinemas for a family of four costs AED 1,100 ($300).

Digital nomads can enjoy cultural experiences like visiting the Sheikh Zayed Grand Mosque or public beaches in Abu Dhabi, which are often free or low-cost.

Company Formation and Business Setup Costs for Digital Nomads

UAE business setup has a great appeal for digital nomads, particularly in Dubai, which has a known business hub image and offers other tax-related benefits. This is the breakdown of information:

Business Setup Costs

• Free Zone Setup: AED 12,500 ($3,400) for a basic license in Jumeirah Lakes Towers and Dubai Marina. Includes a PRA and other stipulated manager services for visa and document processing.
• Mainland Setup: AED 15000-25000 ($4100-6800), depending on business type and business setup consultant fees.
• Coworking Spaces: AED 1,000-3,000 ($272-817) in Business Bay and JLT; Abu Dhabi charges 800-2,000 ($218-545).

Visa Requirements for Expats

• Digital Nomad Visa: AED 2200 ($600) annually, with much flexibility for remote workers.
• Business Visa: Usually part of the free zone packages. Usually AED 5500 ($1500) for two years.

Opening a Bank Account

• Opening a bank account requires documents such as proof of residence and income, which in Sharjah is AED 3,000-5,000 monthly. 
• Most banks, e.g., Abu Dhabi Commercial Bank and Emirates NBD, offer expat accounts with low fees.

Expat tax incentives, like a 9% corporate tax rate, are advantageous for digital nomads, making setting up a company in Dubai inexpensive. Remote work infrastructure, such as coworking spaces in the UAE, comes with fast internet and handy remote work connections.

UAE Golden Visa: Costs and Benefits for Expats

The UAE Golden Visa is a popular option for digital nomads and investors seeking long-term residency. Here are the approximate costs:

• 2-Year Visa: Requires an AED 750,000 ($204,000) real estate investment.
• 10-Year Visa: Requires AED 2,000,000 ($545,000).

Benefits:

• Residency without permanent stay requirements.
• Access to business opportunities and tax benefits.
• Ability to sponsor family members.
• Profit from renting out properties in areas like Jumeirah Village Circle.

This visa enhances the UAE’s appeal as an investment-friendly destination for expats and digital nomads.

Cost of Living in UAE vs. USA, UK, and India

How does living in the UAE compare globally? Below are the approximate costs of living:

• UAE vs USA: Dubai is 50% cheaper than New York ($6,000 vs $12,000 monthly with rent). Internet costs are 40% higher in the UAE (AED 324 ($88) vs $60 in the USA).
• UAE vs UK: Dubai is 30% cheaper than London, with utilities costing AED 750 ($157) in Dubai vs AED 1,230 ($260) in London.
• UAE vs. India: Dubai is 83% more expensive than Mumbai but offers a higher quality of life and safety.

These comparisons help expats and digital nomads plan their relocation costs effectively.

How to Move to the UAE: Practical Steps for Relocation

Relocating to the UAE involves careful financial planning. Here are the steps:

1. Choose an Emirate: Select Dubai for business opportunities, Abu Dhabi for safety, or Sharjah for affordability.
2. Secure Housing: Rent in Jumeirah Lakes Towers or Sharjah for cost savings.
3. Obtain a Visa: Apply for a UAE Golden Visa or digital nomad visa through PRO services.
4. Open a Bank Account: Provide proof of income and residency documents.
5. Set Up Healthcare: Purchase mandatory private health insurance (AED 558-1,836 ($152-500) annually).
6. Plan Business Setup: Use a business setup consultant in Dubai for free zone or mainland registration.

For digital nomads, prioritize coworking spaces in Dubai and high-speed internet for seamless remote work.

FAQs About Cost of Living in UAE

Q1: Is it expensive to live in the UAE?

The cost of living in the UAE varies. Dubai is the most expensive, with AED 7,300 ($2,000) monthly for a single person, while Sharjah costs AED 3,100 ($850) without rent.

Q2: What is the cheapest city to live in in the UAE?

Ajman, Ras al-Khaimah, and Umm Al Quwain are the cheapest cities in the UAE, with costs 30% lower than Dubai or Abu Dhabi.

Q3: Is AED 3,000 a good salary in Dubai?

AED 3,000 is insufficient for living costs in Dubai per month, as a single person needs at least AED 7,300 ($2,000) with rent. Higher salaries (AED 11,800 ($3,200)) ensure comfort.

Q4: How much does it cost to set up a business in Dubai?

Company formation in Dubai costs approximately AED 12,500-25,000 ($3,400-6,800), depending on free zone or mainland setup, plus AED 1,000-3,000 ($272-817) for coworking spaces.

Q5: What are the visa requirements for digital nomads in the UAE?

A digital nomad visa costs AED 2,200 ($600) annually, requiring proof of income and remote work status.

Key Takeaways for Living in the UAE

• Cost of Living in UAE: Ranges from AED 3,100 ($850) in Sharjah to AED 7,300 ($2,000) in Dubai for a single person, with families needing AED 13,000-14,000 ($3,540-3,800).
• Affordable Emirates: Sharjah, Ajman, and Ras al-Khaimah offer lower living expenses.
• Business Setup for Digital Nomads: Dubai is ideal, with business registration costs starting at AED 12,500 ($3,400) and coworking spaces at AED 1,000 ($272) monthly.
• UAE Golden Visa: Starts at AED 750,000 ($204,000) for residency and tax benefits.
• Quality of Life: Abu Dhabi ranks as the safest city, while Dubai offers a luxury lifestyle and vibrant expat community.

Whether you’re an expat, family, or digital nomad, the UAE offers a blend of affordability, safety, and business opportunities. Start your relocation planning today with a business setup consultant or a UAE Golden Visa application to make the most of this dynamic destination.