How Much Does It Cost To Live In Abu Dhabi?

Abu Dhabi, located on an island in the Persian Gulf, has become increasingly attractive to expats due to its affordable cost of living, zero-income taxation system, high level of security and excellent quality of life.

Abu Dhabi’s affordability of living is one of the primary reasons people choose to relocate here. Compared to other major cities worldwide, living costs in Abu Dhabi are relatively low, making it an appealing option for individuals and families seeking a comfortable lifestyle without breaking their budgets.

Safety and security are other major attractions for those drawn to Abu Dhabi.

With a low crime rate, it’s considered one of the safest places in the world – making it especially ideal for families with children or anyone searching for an atmosphere of serenity to call home.

Average Salary in Abu Dhabi

The average salary in Abu Dhabi is AED 98,000 per year. However, individuals working in skilled industries may earn significantly higher salaries than expatriates.

The average salary of skilled individual in Abu Dhabi is approximately AED 570,000, the sixth-highest expatriate salary globally.

With no taxes to pay, this salary is a six-figure sum that can help cover your living expenses in Abu Dhabi.

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Cost Of Living In Abu Dhabi

Food and Drink Expenses

Before moving anywhere, it’s essential to understand food expenses as they will be a significant component of your living costs.

In Abu Dhabi, food prices vary based on individual spending habits; the city’s diverse investor and entrepreneur community offers luxurious restaurants at higher prices, while residents often dine well for much less money.

Here are some examples:

  • Meal Expenses at a Cheap Restaurant: AED 25.00
  • Domestic beer expense (0.5 liters): AED 40.00
  • Imported beer expense (0.33 liters): AED 37.50
  • Meal expenses for two people at a mid-range restaurant: AED 200.000
  • An average glass of Coke/Pepsi costs AED 3.32
  • McDonald’s meal expenses: AED 30.00

Real Estate Expenses

When considering moving to Abu Dhabi, you must consider real estate costs, as this will likely be your largest outgoing.

Abu Dhabi is witnessing a post-pandemic real estate boom, with many real estate agencies reporting an unprecedented 50% surge in demand during the first four months of 2022 alone.

Over the 12 months leading up to March 2022, Abu Dhabi’s average real estate cost has increased by 1.5%.

On average, apartments and villas in Abu Dhabi now cost AED 10,904 and AED 8,850 per square meter, respectively, on this date in 2022.

The average monthly rent for a one-bedroom apartment in Abu Dhabi’s city centre is AED 8,924.85.

Conversely, outside the city centre, renters can expect to pay an average monthly rent of AED 6,211.50.

Selecting the ideal option that meets both your budget and lifestyle demands is essential for finding success.

Transportation Expenses

Transportation costs are essential to consider if you do not drive to work.

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Fortunately, Abu Dhabi’s public transport infrastructure is rapidly developing and is relatively affordable. Here are some typical transportation costs in the city:

  • A one-way ticket costs AED 2.00
  • A monthly pass costs AED 80.00
  • Taxi start (normal tariff) is AED 12.00
  • Taxi 1 km has a normal tariff of AED 2.00
  • Taxi 1-Hour Waiting at Normal Tariff is AED 22.50
  • Gasoline (1 Liter) is AED 3.09

With a well-established public transportation system and affordable taxi rates, getting around Abu Dhabi is easy and budget-friendly.

Additionally, the relatively low cost of gasoline makes owning a car more affordable, should you decide to do so.

Sports and Leisure Expenses

Abu Dhabi’s year-round warm and sunny weather creates an ideal outdoor environment for swimming, running, and beach walks.

However, it is essential to note that the summer months in the United Arab Emirates can be extremely hot, which may make it necessary to consider indoor exercise options such as joining a gym.

Abu Dhabi has several health clubs and CrossFit gyms that cater to individuals with different fitness levels and preferences.

Here are some average costs for fitness and entertainment in Abu Dhabi:

  • Monthly adult fee for a fitness club: AED 260
  • One hour on a tennis court: AED 120
  • The cost of watching a movie at the local cinema: AED 45

Childcare Expenses

If you’re planning to raise a family in Abu Dhabi, it’s important to consider your children’s education costs.

The monthly preschool cost for a single child is approx. AED 2,131 while the annual costs for single child in an international primary school is approx. AED 36,940.

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It should be noted that some companies offer an education allowance in Abu Dhabi.

Would Living In Abu Dhabi Be Less Expensive Than Living In Dubai?

Dubai offers a greater variety of entertainment options, nightlife, family-friendly activities, luxury hotels, and a range of budget options due to its larger size.

In contrast, although slightly pricier, Abu Dhabi is known for its peaceful atmosphere.

Would It Be Worthwhile To Reside In Abu Dhabi?

Residing in the United Arab Emirates (UAE) is a one-of-a-kind encounter.

With a diverse population representing various nationalities, an energetic nightlife that can compete with London and New York, and a complete absence of income tax, the Gulf nation has many opportunities to offer.

What Is The Average Cost Of Rent In Abu Dhabi?

The average rent for a studio apartment in the UAE is 30,000 to 50,000 AED annually. Meanwhile, the average rent for a one or two-bedroom apartment is between 70,000 and 100,000 AED per year.

Final Thoughts

Abu Dhabi boasts some of the world’s most stunning beaches, offering residents a haven for relaxation and leisure activities.

Additionally, the city is renowned for its high-end shopping destinations ranging from luxury brands to local boutiques – making it a shoppers’ paradise.

Abu Dhabi also has an exciting nightlife scene with numerous bars, clubs, and entertainment venues available.

No wonder Abu Dhabi has become a top destination for expats looking to relocate to the United Arab Emirates.

If you are thinking about making a move here, you can expect an exceptional quality of life, modern infrastructure, stunning beaches, vibrant nightlife and secure surroundings in which to call home.

 

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