Cost of Living in Abu Dhabi

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The cost of living in Abu Dhabi is steep and expected to rise as the emirate’s oil-exporting economy continues to thrive. If you’re relocating to Abu Dhabi to benefit from its income-tax-free environment, be prepared for a high cost of living. Compared to many other global cities, daily expenses can be substantial, particularly if you’re used to a more affordable lifestyle.

Many of the generous expat allowances that were once standard in UAE job packages are now rare. That said, with careful research, you can get a realistic sense of expected costs and negotiate a salary that supports the lifestyle you envision.

As with any major city, your expenses will depend largely on your lifestyle choices. There are plenty of ways to indulge in luxury, but careful budgeting makes it possible to live comfortably without breaking the bank.

Accommodation, transport, and schooling are the biggest expenses. Food, clothing, and entertainment tend to be more manageable.

Cost of accommodation in Abu Dhabi

The cost of accommodation in Abu Dhabi is one of the biggest financial considerations when moving here. Rent can take up as much as 40 percent of your monthly salary. Prices vary based on location, property size, and whether the home is furnished or unfurnished.

On-island areas like Saadiyat Island cater to luxury living, with two-bedroom apartments costing significantly more than similar units on Al Reem Island or in Mohammed Bin Zayed City. If you’re looking for more budget-friendly options, off-island areas tend to be more affordable.

Recent regulations have introduced protections for tenants. A rental increase cap of 5 percent is in place, preventing landlords from raising rent by more than this upon lease renewal. Additionally, all tenancy contracts must be registered with the Tawtheeq system, ensuring transparency and legal security.

If you’re relocating, it’s worth negotiating a shipping allowance or a start-up stipend to help with initial expenses. Utility costs in Abu Dhabi are reasonable but can add up if you maintain a garden or live in an air-conditioned villa.

Accommodation in Abu Dhabi
Shipping and Removals in Abu Dhabi

Cost of transport in Abu Dhabi

The cost of transport in Abu Dhabi is another significant expense. While public transport is available and improving, most residents prefer to own a car for convenience. The city has been expanding its bus network, introducing electric buses, and piloting an Automated Rapid Transit (ART) system, making public transport a more viable option.

If you plan to drive, buying or leasing a car is a common choice, although importing your own vehicle may be a cost-saving alternative. The UAE allows vehicle imports under ten years old, with necessary paperwork such as a No Objection Certificate (NOC), customs clearance, and proof of ownership.

Car ownership comes with additional costs, including insurance, maintenance, parking, and fuel. Be mindful of the strict traffic laws in Abu Dhabi. Heavy fines apply for offences such as speeding and illegal parking. The government has been increasing enforcement efforts to enhance road safety and reduce congestion.

Getting Around in Abu Dhabi

Cost of groceries in Abu Dhabi

The cost of groceries and clothing in Abu Dhabi can vary dramatically depending on where and how you shop. While luxury supermarkets and high-end malls can quickly drain your budget, there are plenty of ways to keep costs down.

Local food products are significantly more affordable than imported Western brands. Fresh produce at local markets is also budget-friendly, whereas organic and speciality imported goods tend to be pricey.

Alcohol remains expensive due to high taxes, so purchasing duty-free at the airport is a smart way to save. Some residents also stock up on trips abroad to avoid the markup.

If you want to save on groceries, Carrefour and Lulu Hypermarket are among the most affordable supermarket chains, offering weekly promotions and loyalty programmes. Shopping online for bulk items through platforms like Noon or Amazon UAE can also help cut costs.

The UAE has been actively working to ensure food security and stable pricing. With initiatives such as the National Food Security Strategy 2051, the government is investing in local food production and diversifying import sources to keep shelves stocked despite global supply chain disruptions.

Cost of entertainment and eating out in Abu Dhabi

The cost of entertainment and eating out in Abu Dhabi varies widely, with options to suit all budgets. Whether you’re dining at a high-end restaurant, enjoying an international culinary event, or simply grabbing a meal at a budget-friendly spot, the city has plenty to offer.

The dining scene in Abu Dhabi is thriving, with internationally renowned chefs bringing their expertise to the city. Major hospitality brands continue to introduce new fine dining experiences, and fusion cuisine – blending traditional Middle Eastern flavours with international techniques – is gaining popularity.

If you’re looking to dine out without breaking the bank, head to ethnic-style restaurants offering Indian, Arabic, Chinese, or African cuisine – these are significantly cheaper than hotel-based eateries and bars. Many restaurants also run dining deals during weekdays or off-peak hours.

Abu Dhabi’s entertainment scene is equally diverse. The city’s nightlife is vibrant yet refined, with high-end lounges, rooftop bars, and live music venues providing options for a sophisticated evening out. Alcohol is only available in licensed venues, and public intoxication is strictly prohibited.

Leisure and Dining Scene in Abu Dhabi

Cost of education in Abu Dhabi

The cost of education in Abu Dhabi is a major consideration for expat families, as most parents opt for private international schools. While these institutions offer high-quality facilities, the tuition fees can be substantial, and costs don’t always correlate with the standard of education.

Schools in Abu Dhabi follow a variety of curricula, catering to the city’s diverse expat community. The British curriculum leads to GCSEs and A-Levels, while American schools follow the US Common Core with the option of AP courses. International Baccalaureate (IB) schools offer globally recognised qualifications and families from India can find CBSE-affiliated schools. Canadian schools are another option.

Tuition fees vary widely based on the school’s curriculum, reputation, and location. Additional costs, including uniforms, textbooks, school lunches, and bus fees, can add up quickly. If you’re relocating for work, it’s worth negotiating an education allowance in your salary package, as some employers still provide financial support for school fees. Some international schools also offer scholarships and flexible payment plans to help families manage costs.

International Schools in Abu Dhabi

Cost of healthcare in Abu Dhabi

The cost of healthcare in Abu Dhabi is an important consideration for expats. By law, employers must provide health insurance for you and your dependants, ensuring access to medical services. However, the level of coverage can vary, and not all policies offer the same benefits.

Local health insurance plans typically cover medical expenses within the UAE but may not include treatment abroad. If you travel frequently or prefer international medical facilities, opting for an international health insurance plan with broader coverage might be beneficial. These policies often include emergency medical evacuation, coverage for pre-existing conditions, and elective treatments.

Recent regulatory changes mean that as of 2025, mandatory health insurance extends to all seven emirates, ensuring comprehensive coverage for expats across the UAE. Employers failing to provide adequate health insurance may face penalties, making it essential to verify your policy details when negotiating employment contracts.

Healthcare and Health Insurance in Abu Dhabi