Dubai and Abu Dhabi Most Expensive cites for Expats

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Dubai and Abu Dhabi are some of the most expensive cites for expats

Dubai and Abu Dhabi are still known as some of the most expensive cities for expatriates in the world. One of the main reasons as to why these two cities keep moving up the rankings is due to the strong dollar. Based on the Cost of Living Survey, Dubai is now placed at 21 moving up by two spots since last year and Abu Dhabi has moved up by 8 spots now ranking at the 25th place.  dubai marina


Hong Kong became the most costly city in the world ranking at number 1 with Luanda and Zurich following right after in the second and third place while Singapore and Tokyo sit at the fourth and fifth rank.

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For expats, currency fluctuations became the biggest force in terms of cost for them as price inflation was on the lower side across the board.

Rob Thissen, Talent Mobility Consultant at Mercer Middle East said that “You had a circumstance when any semblance of the pound, yuan and a large portion of the developing business sector monetary standards were slipping against the dollar and that affected the individual city rankings.

With a large portion of the Gulf currencies pegged to the dollar, those cities climbed to the detriment of those which dropped down.” (The overview’s discoveries depended on information gathered in the 12 months to March 2016). He also added that it can recognized that there is a decline in rental values in Dubai nowadays, but that the survey also considers what happened in 2015 when the rents will on the higher side.

Soft job market

The job market is regarded as soft however through more lay-offs, the market might have subsided just that little bit. Companies are trying to see how the year goes in order to prevent themselves from falling into too much of a cost burden by restraining and not in any hurry to starting hiring a lot of people.

Expats will want some more flexibility when the time comes for them to renew their home lease.

This softening that is has been going on only applies to a certain amount of specific residential clusters, mostly in the freehold areas. Any further heightening on costs could tighten many household budgets crush on family unit spending plans.

Riyadh vs. Jeddah

Riyadh jumped up 14 spots on the ranking, now holding the57th place on the board as being the most expensive city in the world. Whereas Jeddah is a lot lower, moving up from 151st to 121st on the ranking. The reason behind the big difference between the two Saudi cities is due to the higher residential rentals that Riyadh has compared to Jeddah.


These rankings exceptionally consolidate everyday consumption on products and services, for example, food, apparel and transportation, with rental costs. While costs of most goods and services are thought to be less expensive in Saudi Arabia than in Europe, it is the expatriate rental market that causes these two cities high up in the ranking.

Beirut City

Beirut is evaluated as the third most costly city in the Middle East for expats and ranked 50th worldwide. This is in spite of a full-scale struggle seething on the nation’s fringes. This is because the Lebanese currency’s dollar peg and the lack of change in rental value in specific areas where expats live in Beirut.

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What would be the immediate projections for the dollar and its influence on cost of living?

From a greater worldwide point of view, developing market currencies stay under weight and ventures are streaming again into those appraised as steady economies. This leaves dollar economies and those pegged to it in a more grounded position.

People could have organizations from non-dollar groups offering more through allowances for their expat personnel. However expats in the UAE will still be able to deal with lowered rents.