How Much Does It Cost to Live in UAE in 2025?

Your selected emirate and lifestyle will determine the cost of living in the UAE in 2025. Whether you are a digital nomad, single, or a family, the expenses vary. For a single, the estimated monthly expense is AED 3,600 ($980), while a family of four would require AED 12,500 ($3,400). Rent raises the cost to AED 7,300 ($2,000) for a single in Dubai and AED 13,000 ($3,540) for a family. Dual-income housing and affordable living can be found in Sharjah, while Ajman offers budget living. Digital nomads employing coworking spaces or setting up businesses in the UAE have to watch their spending and plan due to the extra costs.

You will discover relevant information to aid in planning your life as an expat, whether you wish to move to the UAE or are looking to establish a brand-new business, with this guide. There are also wheeling and dealing insights into housing expenses, utility bills, cost of goods, transportation, healthcare, education, leisure, and business registration in Dubai.

Exploring UAE  Key Emirates | Costs and Lifestyles

The UAE is an economically competitive and regionally attractive business center with great safety and cultural tourism value; it also offers diverse business and investment opportunities. Below is an overview of the major emirates with approximate cost.

1. Dubai: the emirate with the city of the same name is famous for its modern landmarks like the Burj Al Arab and Palm Jumeirah. Living in the city is quite costly, with a single person spending over AED 4,000 on living expenses, excluding rent, and a family requiring AED 14,000. The city is great for digital nomads, as it has a well-developed remote working infrastructure as well as numerous coworking spaces, especially in Dubai Marina.
2. Abu Dhabi, the capital city, is home to the famous Sheikh Zayed Grand Mosque and is the safest city in the world according to Numbeo. Overall, the city has a lower living standard in comparison to Dubai, with a single person living on AED 3,500 and a family on AED 11,000.
3. Sharjah offers the most relaxed pace of living, costing AED 3,100 for a single person and AED 10,600 for a family. The emirate has the most affordable housing options as well, making it a great choice for retirees and low-budget students.
4. Ras al-Khaimah and Ajman are some of the cheapest places to live in the UAE. Living in these two cities is 30% cheaper than Dubai, making it very attractive for expat workers. 

The expat-friendly infrastructure in the UAE is combined with regionally unique leisure avenues, making it a top choice for relocation.

Housing Expenses Across the United Arab Emirates

Housing costs are the largest component of the UAE living costs per month. Prices vary by emirate and location. Here is the approximate cost breakdown:

Dubai Housing Costs

• City Centre: Property purchase costs AED 22,000 ($6,000) per sqm; a 3-bedroom apartment rents for AED 15,000 ($4,000) monthly.
• Suburban Areas: AED 12,500 ($3,400) per sqm; a 1-bedroom apartment in Jumeirah Village Circle costs AED 10,450 ($2,846) monthly.
• Premium Areas: Properties in Business Bay or Uptown Dubai can reach AED 2,500,000 ($680,800).

Abu Dhabi Housing Costs

• City Centre: AED 18,300 ($5,000) per sqm; a 3-bedroom apartment rents for AED 10,400 ($2,800).
• Suburban Areas: AED 15,700 ($4,300) per sqm; a studio rents for AED 4,900 ($1,000).
• Leasehold Only: Property ownership is limited to 99-year leases, unlike Dubai’s freehold options.

Sharjah Housing Costs

• City Centre: AED 24,200 ($6,600) per sqm; a 3-bedroom apartment rents for AED 5,900 ($1,600).
• Suburban Areas: AED 16,700 ($4,500) per sqm.

Digital nomads often choose Jumeirah Lakes Towers (JLT) or Dubai Marina for proximity to coworking spaces and vibrant expat communities. Sharjah offers significant savings for families.

Utility Bills and Connectivity Costs

Remote work expenses relate to utility bills such as electricity, water, garbage, and internet services. Here are the approximate costs:

• Dubai: $200 for a 740 AED 3-bedroom apartment; internet services of $88 for 8 Mbps.
• Abu Dhabi: $300 for a family of 2, $158 for a 45 m² studio apartment for a single person, and 580 AED for internet services.
• Sharjah: Traded $197 for a 3-bedroom apartment and $150 for

For Ahmed, summer cooling of ACs and $109 for CAD 400 for internet services do add to the AED 109. For high speeds, it is a business-enabling expense.

Grocery and Dining Costs in the UAE

Food expenses vary based on cooking habits and dining preferences. Here’s how costs stack up, the approximate cost:

Grocery Prices

• Dubai: A basic food basket (milk, eggs, rice, apples, chicken) costs AED 74 ($20).
• Abu Dhabi: AED 67 ($18).
• Sharjah: AED 57 ($16), the most budget-friendly.

Sample prices:

• 1 kg of tomatoes: AED 6 ($1.60)
• 500 g of local cheese: AED 19 ($5)
• 2 liters of Coca-Cola: AED 8 ($2.20)
• Bread for two: AED 4.85 ($1.30) daily

Dining Out

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

A single person’s daily menu (home breakfast, coffee, restaurant lunch, and dinner) 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 shopping at local markets in Sharjah or Ajman and limiting dining out.

Navigating Transportation in the UAE

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

Public Transport Costs

• Dubai: Monthly pass at AED 300 ($82); taxi at 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 Toyota Corolla costs AED 81,700 ($22,200).
• Fuel: AED 3 ($0.80) per liter in 2025.
• Annual costs (fuel, maintenance, insurance): AED 37,000 ($10,000).

Inter-emirate travel, like Dubai to Abu Dhabi, costs AED 20 ($5) by bus. Digital nomads in Jumeirah Beach Residence or Business Bay benefit from metro access to coworking spaces.

Healthcare Expenses for UAE Residents

The UAE has more than 200 JCI-accredited hospitals, which exemplify the high quality of healthcare in the region. Private health insurance is compulsory for expatriates. Here is the approximate cost breakdown:

Insurance Fees

Individual: Basic coverage begins at AED 558 (USD 152) per year, while extended coverage is available for AED 1,836 (USD 500).

• Family of Four: Comprehensive plans available for AED 3672 (USD 1000) per year.
• Fines: AED 500 (USD 136) per month insurance penalty, which will be active from 2025.

Example providers:

• Emirates Insurance Company: AED 734 (USD 200) per person.
• Ras Al Khaimah National Insurance: AED 734 (USD 200) per person.

Travelling freelancers should opt for plans that also cover outpatient services, which are also covered in extended outpatient plans for about AED 184,000 (USD 50,000) per year.

Education Costs for Expat Families

Education prices in the UAE are significant, with private schools and universities catering to expats. Here are the approximate costs:

Preschool Costs

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

Private Schools

• Sharjah: AED 18,600 ($5,000) annually (e.g., Beaconhouse Al Khaleej International School).
• Abu Dhabi: AED 30,000-45,900 ($8,170-12,500) annually (e.g., Cranleigh School Abu Dhabi).
• Dubai: AED 13,000-65,000 ($3,540-17,449) annually (e.g., Dubai International Academy).

Higher Education

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

Families in Sharjah benefit from affordable education, while Dubai offers premium international curricula.

Leisure and Entertainment Options

The UAE’s leisure activities range from Yas Water Park to Warner Bros. World, appealing to expats and families.

• Movie Tickets: AED 45 ($12) in Sharjah; AED 50 ($14) in Dubai and Abu Dhabi.
• Gym Memberships: AED 317 ($86) monthly in Dubai; AED 200 ($54) in Sharjah.
• Family Outings: A week of activities (museums, cinemas) costs AED 1,100 ($300) for a family of four.

Digital nomads can enjoy free public beaches or events like the Red Bull Air Race in Abu Dhabi for budget-friendly fun.

Setting Up a Business in the UAE: Digital Nomad Guide

The ease of opening a company in Dubai serves as a magnet for digital nomads due to its attractive tax policies and comprehensive business ecosystem. Below are the approximate costs for business setup in UAE.

Business Setup Costs

• Free Zone: AED 12,500 ($3,400) for a basic license in Jumeirah Lakes Towers and similar locations. Includes basic PRO for visa and permit processing.
• Mainland: AED 15,000-25,000 ($4,100-6,800) depending on business activities.
• Coworking Spaces: AED 1,000-3,000 ($272-817) per month in Dubai; AED 800-2,000 ($218-545) in Abu Dhabi.

Digital Nomad Visa

• Provides evidence of remote employment and a monthly earning of AED 3,000-5,000.
• Banking and remote work infrastructure are accessible.

Banking

• Requires proof of residency and income to open a bank account. For expatriates, Emirates NBD has low-fee accounts.
• Corporate tax is 9%, and living costs for digital nomads in Dubai are relatively cheaper due to business setup consultants in the area.

The UAE’s 9% corporate tax rate and business setup consultants in Dubai make it a cost-effective choice for digital nomad living costs.

UAE Golden Visa: Residency Through Investment

The UAE Golden Visa offers long-term residency for investors and digital nomads.

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

Benefits:

• • No residency requirement.
  • Family sponsorship.
  • Profit from renting properties in Jumeirah Village Circle or Business Bay.
  • Access to tax benefits for expats in Dubai.

This visa enhances the UAE’s appeal as an investment-friendly destination.

Comparing UAE Costs with Global Cities

The UAE living cost is competitive globally:

• UAE vs USA: Dubai is 50% cheaper than New York ($6,000 vs $12,000 monthly). Internet costs are higher (AED 324 ($88) vs $60).
• UAE vs. UK: Dubai is 30% cheaper than London, with utilities at AED 750 ($157) vs. AED 1,230 ($260).
• UAE vs. India: Dubai is 159% more expensive than Gurgaon, but it offers a superior quality of life and safety.

These comparisons guide relocation planning for expats and digital nomads.

Steps to Relocate to the UAE in 2025

Relocating to the UAE requires careful planning:

1. Select an Emirate: Choose Dubai for business, Abu Dhabi for safety, or Sharjah for affordability.
2. Find Housing: Rent in Jumeirah Beach Residence or Sharjah for cost savings.
3. Secure a Visa: Apply for a digital nomad visa or UAE Golden Visa via PRO services.
4. Open a Bank Account: Use residency and income proof.
5. Arrange Healthcare: Purchase mandatory insurance (AED 558-1,836 ($152-500)).
6. Set Up a Business: Engage a business setup consultant in Dubai for free zone or mainland registration.

Digital nomads should prioritize coworking spaces in the UAE for seamless remote work.

Frequently Asked Questions About UAE Living Costs

Q1: What is the average cost of living in Dubai?

A single person needs AED 7,300 ($2,000) monthly with rent, while a family of four requires AED 14,000 ($3,800).

Q2: Is the UAE cheaper than the USA or the UK?

Yes, Dubai is 50% cheaper than New York and 30% cheaper than London, though internet costs are higher.

Q3: How much does it cost to live in the UAE for an Indian?

Cost of living in the UAE for Indian expats averages AED 3,600 ($980) without rent in Sharjah, but Dubai is 83% more expensive than Mumbai.

Q4: What are the best cities to live in in the UAE?

Abu Dhabi for safety, Dubai for business, and Sharjah for affordability are top choices.

Q5: How do I set up a business in Dubai?

Business registration in Dubai approximates costs of AED 12,500-25,000 ($3,400-6,800), with coworking spaces at AED 1,000 ($272) monthly.

Final Insights for Your UAE Journey

The cost of living in the UAE in 2025 offers options for every budget, from Dubai’s luxury lifestyle to Sharjah’s affordable living. Digital nomads benefit from business setup for remote workers, tax benefits, and coworking spaces in Dubai Marina or JLT. With the UAE Golden Visa, you can secure residency while enjoying a safe and expat-friendly environment. Start your journey by exploring housing prices, budgeting for utilities, and leveraging business opportunities to thrive in this dynamic destination.