cost of living

Global rankings reflect sharp rise in cost of living in Dubai and Abu Dhabi

The cost of living in Dubai and Abu Dhabi has risen sharply, according to Mercer’s Cost of Living 2023 study. In the ranking, Dubai moved up to 18th place in the world, with Abu Dhabi ranked 43rd. Despite this, the UAE economy continues to show steady growth.

One of the key factors influencing the rise in the cost of living has been the rise in property rents. In Dubai, for example, rental prices are rising at an average annual rate of 25% and in Abu Dhabi at 6-8%. The prices of food (up to 11%), transport services (4%) and sports (5%) have also gone up.

Vladimir Vrzhovsky, head of financial services and technology at Mercer Middle East, said that employers in the UAE are taking all these factors into account, with average wage growth of 4.2%. Many companies are increasing bonuses and housing benefits – by 5-10% on average.

The study notes that despite rising prices, the cost of living in the UAE remains competitive compared to the world’s major cities. Hong Kong remains the most expensive city in the world, followed by Singapore. In the Middle East, Tel Aviv remains the most expensive city for foreigners.

Earlier, the United Arab Emirates was named the best country in the world in terms of career opportunities for foreigners, according to the Expat Essentials Index study by InterNations Expat City Ranking 2022.

According to the survey, around 79% of respondents felt that moving to the UAE had improved their career prospects. This compares to a global average of just 60%. Alongside this, 83% of survey participants mentioned the ease of obtaining an entry visa.

Three out of five expats (61%) have not experienced bureaucracy in the United Arab Emirates, as most government services can be obtained online. Foreigners noted that the UAE is also favourable for building a career due to the widespread use of English.

Source: Arabian Business

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