How does the cost of living compare between Dubai and Abu Dhabi?

• Basic Cost of Living in Dubai vs Abu Dhabi
• Housing
• Groceries
• Utilities
• Education
• Healthcare
• Transport
• House help
• Entertainment

Are you moving to the UAE and deciding between living in Dubai vs Abu Dhabi? Or are you a long-time UAE resident planning a move between emirates? Either way, choosing between living in Dubai or Abu Dhabi can be difficult, especially since both cities offer a fantastic lifestyle. Knowing the expected cost of living in both emirates can certainly make the decision easier. Today, MyBayut compares the basic cost of living in Dubai vs Abu Dhabi to help you make an informed decision. Find out how the relative cost of living in both cities compares when it comes to housing, utilities, schools, transport and more.

Basic Cost of Living in Dubai vs Abu Dhabi

Before we delve into a comparison of the different expenses, take a look below for a quick overview of the starting cost of living in Dubai vs Abu Dhabi. This includes the most basic expenses including housing, grocery and utilities, with the total cost for the month split by family size.

Now let’s take a closer look at the different living expenses in Dubai vs Abu Dhabi.

Housing

One of the most frequently asked questions by those deciding between these emirates, is ‘which is cheaper – Abu Dhabi or Dubai?’. The rent is often the biggest expense for residents, thus it’s important to compare the rental costs in both emirates when calculating the cost of living in Abu Dhabi vs Dubai.

Residents living in Abu Dhabi or Dubai will have a variety of rental properties to choose from, including cosy apartments, charming townhouses, spacious villas and penthouses.

While the cost of renting in Dubai vs Abu Dhabi will significantly vary depending on the area. and property type, the latter does have slightly lower rental prices on average. For example, a person renting a studio in Abu Dhabi can expect to pay between AED 31k per annum on average while the same in Dubai will cost tenants AED 39k, on average.

Similarly, renting a 1-bedroom apartment in Dubai can expect annual rental costs of AED 64k on average, while a similar property in Abu Dhabi would cost AED 52k on average, depending on the area.

In Dubai, the average rent for 2 and 3-bed flats stand at AED 103k and AED 172k respectively. For similar units, the average rent in the capital is AED 75k and AED 108k.

However, bear in mind that both Abu Dhabi and Dubai boast a massive portfolio of properties, and it’s possible to find both budget-friendly and luxurious homes in these emirates. While areas on Abu Dhabi’s mainland such as Mohammed Bin Zayed City, Mussafah and Al Reef are known for affordable properties, the emirate’s residential islands such as Al Reem Island and Saadiyat Island offer unparalleled luxury. You can look for a property to rent in Abu Dhabi as per the needs of your family.

Similarly, suburban areas in Dubai such as Dubailand and Dubai Sports City are perfect for budget-conscious tenants, while Downtown Dubai and Dubai Marina, which are centrally located and offer easy access to commercial and leisure hubs, command higher rents on average.

Groceries

When it comes to comparing the cost of living in Dubai vs Abu Dhabi, an essential expense to consider is your monthly grocery shopping. Your monthly grocery bill will vary significantly depending on your preferences and your supermarket of choice, regardless of where you live.

However, when comparing the cost of basic items that every household has, the average cost of groceries in Dubai vs Abu Dhabi is nearly the same. Popular supermarket chains such as Carrefour and Lulu have a multitude of branches across both emirates and offer quality products at economical prices. On the other hand, those shopping for imported foods at premium retailers such as Waitrose and Al Maya Supermarket will see an increase in their cost of living in Abu Dhabi or Dubai.

Take a look below at the comparison of prices for basic items to better understand the average cost of groceries in Dubai vs Abu Dhabi:

Utilities

Aside from their housing rent, residents will also consider the cost of their electricity and water connection. In Abu Dhabi, the Abu Dhabi Distribution Company (ADDC) is the relevant authority while in Dubai, this is provided by the Dubai Electricity and Water Authority (DEWA).

When it comes to the utility cost in Dubai vs Abu Dhabi, the former is more expensive. For instance, in an apartment in Dubai, one can expect to pay between AED 500 to AED 1100 per month on utility bills, while the same in Abu Dhabi costs around AED 370 to AED 1000. Costs will be higher for those opting for villas. These can be the additional costs of renting in Dubai you must be aware of.

However, other utility expenses such as mobile and internet connection will cost the same in both emirates, as there are two main providers in the UAE: Etisalat and du. For instance, postpaid mobile plans start from AED 125 per month but can rise to AED 600 per month, depending on the data and calling package. On the other hand, TV and internet packages start from AED 400 per month.

Education

For families with school-going children, tuition fees are an unavoidable expense that must be factored into their monthly cost of living. Thus, it’s worth knowing the average cost of schooling in Dubai vs Abu Dhabi to find out which city is more suited to their budget.

Private schools are the favoured choice for expats living in both Dubai and Abu Dhabi. The leading private schools typically offer British, American, IB and Indian curricula.

The table below compares the annual tuition fees ranges in popular schools in Dubai and Abu Dhabi. As seen in the table, schools in Dubai tend to be more expensive than those in Abu Dhabi. However, it’s important to note that both emirates offer a multitude of schooling options, catering to various budgets.

Healthcare

Residents in Dubai and Abu Dhabi must get health insurance, which also factors into the cost of living in the UAE. If you are on an investor visa or your employer does not provide insurance for your family, you must purchase medical insurance for yourself and your dependents.

However, it’s important to note that medical insurance premiums cost a similar amount in both Dubai and Abu Dhabi, and will vary depending on the level of coverage and benefits. The basic health insurance plan (known as the Essential Benefits Plan in Dubai) costs around AED 650 to AED 725, although there are certain eligibility criteria to meet. A more comprehensive plan for a single person can cost between AED 4,000 to AED 7,000. On the other hand, a family of four can expect to pay a starting premium of around AED 17,000, which can rise to AED 65,000 to AED 70,000 for worldwide coverage and additional benefits.

You can take a look at popular medical insurance companies in Dubai and the top Abu Dhabi insurance providers to get a better idea of the insurance premiums.

Transport

Another expense to take into account when deciding which is better – Dubai or Abu Dhabi, is the transportation cost. Most residents own private cars to commute within both Dubai and Abu Dhabi. The cost of fuel is the same in both of the emirates and is significantly cheaper than in other parts of the world.

Many residents also use public transport for their daily commute to work and other places. While there is a larger public transport network in Dubai, which includes the Dubai Metro, Dubai Tram, public buses, taxis and the Dubai Ferry, the cost of public transport in the emirate is also higher, with a monthly pass costing around AED 340.

On the other hand, public transport in Abu Dhabi includes taxis and public buses, with a monthly pass for the latter costing around AED 80. Thus, if you’re a frequent user of public transport, the cost of living in Dubai vs Abu Dhabi will be higher.

House help

Many residents also hire house help, which is relatively more affordable in the UAE than in other parts of the world. Expats who wish to hire full-time maid or nanny will have to sponsor them and provide them with medical insurance, which will add to their living expenses in UAE.

However, the cost of nanny visa in Dubai and Abu Dhabi are the same. Residents can expect to pay AED 8,500 for maids who are on agency visas. If you wish to sponsor a maid visa, the cost goes up to AED 17k. This will exclude their monthly salary, which can range between AED 1,500 to AED 3,500, although this can increase if the employer cannot provide accommodation for them.

Several agencies offer part-time house help too, which cost between AED 35 to AED 50 per hour.

Entertainment

Residents will be delighted to know that both cities offer a plethora of entertainment, from fine-dining restaurants to sandy beaches, grand shopping malls, state-of-the-art cinemas and theme parks. It’s a good idea to set aside a budget for leisure activities over the weekends and public holidays.

However, the cost of living in Abu Dhabi vs Dubai will be similar when it comes to expenses for entertainment and activities. A ticket to the cinema in both emirates costs between AED 35 – AED 50 while a meal for two at a mid-range restaurant cost around AED 230 – AED 300. A weekend trip to one of the public parks, which is one of the many affordable activities in either city, will cost between AED 1 – 10 per person.

FAQS ABOUT COST OF LIVING IN ABU DHABI VS DUBAI

WHICH EMIRATE IS BETTER FOR EXPATS – ABU DHABI OR DUBAI?

Ultimately, your cost of living in Dubai or Abu Dhabi will largely depend on your lifestyle and preferences. With options for every budget when it comes to housing, schooling, entertainment and more, it’s possible to lead an affordable or luxurious lifestyle in either emirate. On a general note, the cost of living in the capital is a little bit lower than in Dubai.

WHERE CAN I READ ABOUT THE COST OF LIVING IN DUBAI IN GREATER DETAIL?

You can take a closer look at the family living cost in Dubai with our dedicated guide, and learn more about the expected costs for a single person, couples and families living in the emirate. Similarly, our guide to the average living cost in Abu Dhabi also offers a breakdown of the different expenses for residents living in the UAE’s capital.

That concludes our comparison of the living cost in Dubai vs Abu Dhabi! We hope this guide helps you determine which emirate is the better choice for you.

Want to invest in property in Dubai? Take a look at the reasons for investing in off-plan properties in Dubai before you decide.

The UAE is especially popular with Indian expats, who make up a significant portion of the population. If you’re moving from India to Dubai, take a look at our checklist for smooth and easy relocation!

Dubai residents making the move to the capital city can read up on our guide to moving from Dubai to Abu Dhabi. Find out all the necessary procedures to take care of, from disconnecting your DEWA connection to applying for the right moving permit. But first of all start searching for the popular apartments to rent in Abu Dhabi.

Stay tuned to MyBayut for more articles on living in the UAE!