Cost of Living in Bahrain

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The cost of living in Bahrain is rising due to inflation, especially with a significant Western expat population driving demand for premium goods and services. Food prices have surged, and inflation has fluctuated significantly.

That being said, Bahrain remains relatively affordable when compared to other regional commercial centres like Dubai and Abu Dhabi. If you can manage your finances well, Bahrain offers a reasonable balance between maintaining your lifestyle and saving a little extra for the future.

The 2024 Mercer Cost of Living Survey ranked Manama, the capital and largest city, 110th out of 226 cities globally. While the cost of living varies by individual lifestyle, you’ll find Bahrain still provides opportunities to stretch your budget, especially when compared to some of its more expensive neighbours.

Historically, expat employment packages often included accommodation and car allowances, but today, it's more common to receive an all-inclusive salary. This shift makes it crucial to ensure your earnings cover all your essential expenses comfortably.

Cost of accommodation in Bahrain

Accommodation is likely to be your largest expense in Bahrain. Rental prices fluctuate, and for 2024, they’ve increased slightly due to demand. Renting in expat compounds tends to be the most expensive option, while choosing an apartment in the city centre or outer suburbs could help lower your housing costs.

New housing developments are emerging, offering more competitive pricing, especially for those willing to live outside the main expat hubs. Whether you’re looking for high-end luxury or something more modest, Bahrain’s real estate market provides options for nearly every budget.

Cost of transport in Bahrain

Despite Bahrain’s compact size, you’ll find that public transport options are still quite limited. Improvements are being made, but most expats budget for a private vehicle. Buying a used car can be a cost-effective option, with plenty of choices available. If you're planning a short stay, renting may be more convenient.

Ride-sharing services like Uber and Careem are also widely available and provide a flexible, affordable alternative to owning a car. Electric scooters are growing in popularity as well, particularly for short trips around town.

Cost of groceries in Bahrain

Grocery prices in Bahrain can take some getting used to, especially for new arrivals. Imported goods, particularly from Europe and North America, tend to carry a premium. The inflation rate has driven these prices even higher, particularly in the food sector.

To save money, it’s worth exploring local markets, where you’ll find fresh produce at much lower prices than in the upscale supermarkets. For example, locally produced bread and vegetables can cost significantly less than their imported counterparts.

Cost of entertainment and eating out in Bahrain

Entertainment and dining out are key parts of life in Bahrain, and they can quickly add up. The island has a vibrant social scene, from fine dining to casual eateries, with prices reflecting Bahrain’s position as a regional hub.

In mid-range restaurants, meals are priced competitively with major cities like London or New York. If you're looking to stretch your budget, there are plenty of casual dining spots and fast-food options that are relatively affordable. Bahrain’s social life also includes numerous activities, from water sports to cinema outings. While some attractions are budget-friendly, others – such as high-end lounges or private clubs – can be more expensive.

Cost of education in Bahrain

Expats moving to Bahrain with children often choose one of the island’s international or private schools. However, the high tuition typically charged by these schools can be a substantial expense. In addition to tuition, you should also budget for other education-related costs, such as school uniforms, extracurricular activities, and textbooks.

Cost of healthcare in Bahrain

Healthcare in Bahrain offers a high standard of care, with both public and private healthcare facilities available. Many expats prefer private healthcare due to the shorter wait times and higher quality of services. New hospitals and clinics have been opened, further enhancing the healthcare landscape.

Health insurance is mandatory for expats in Bahrain, and it’s essential to have a comprehensive policy. Some employers include this in their packages, but it’s worth confirming the level of coverage and considering additional policies to cover specialised treatments or procedures.