Cost of Living Comparison: Dubai vs Abu Dhabi for Expats

Both Dubai and Abu Dhabi are popular destinations for expats. Abu Dhabi is home to approximately 2.2 million expatriates from 200+ nationalities. On the other hand, Dubai is home to approximately 3.5 million expats, accounting for about 92% of the total population. Both Emirates have a huge appeal for expats due to reasons like tax-free income, top-tier safety levels and low crime rates and highly advanced contemporary infrastructure.

Quality healthcare and education are other draws for expats relocating to any one of these two cities. So, should an expat choose flexible stay accommodation in Dubaior Abu Dhabi? That’s where understanding the cost of living in both cities is important. Here is a brief comparison that will help you make an informed decision.

Dubai vs Abu Dhabi: How Living Costs Stack Up

Living costs are a key determinant when an expat makes a relocation decision to either Dubai or Abu Dhabi. Going by estimates, the costs of living in Dubai may be approximately 12.8% more than Abu Dhabi (excluding rentals). With rentals, the cost of living in Dubai may be about 13.3% higher than Abu Dhabi. Grocery and restaurant costs are also higher than Abu Dhabi by 2.7% and 25.6% respectively, while rentals in Dubai are 14% more than Abu Dhabi. Yet, interestingly, local purchasing power is 10.2% more in Dubai than Abu Dhabi.

Let us compare the living costs, including family accommodation in Abu Dhabiand Dubai (all figures are approximate estimates and may change).

Category	Abu Dhabi	Dubai
Local Restaurant Meal	Dh34	Dh45
Mid-Range Restaurant Meal (for two)	Dh200	Dh300
Bottled Water (0.33 litre)	Dh1.74	Dh3.00
One-Way Local Transport Ticket	Dh2.75	Dh6
Monthly Public Transport Pass	Dh95	Dh250
Taxi Start (Standard Tariff)	Dh12	Dh12
Taxi 1 km (Standard Tariff)	Dh2.00	Dh2.57
Gasoline (1 litre)	Dh3.37	Dh3.33
Monthly Utilities (Electricity, Cooling, Heating, Garbage, Water)	Dh596.99	Dh870.63
Mobile Phone Plan (Monthly with 10 GB+ data and calls)	Dh210.62	Dh200.64
Broadband Internet (Unlimited data, which is 60 Mbps or more)	Dh315.56	Dh333.76
Fitness Club Membership (Monthly)	Dh326.39	Dh329.33
Cinema Ticket)	Dh55	Dh60
Full-Day Preschool/Kindergarten (monthly)	Dh2,679.17	Dh3,083.33
International Primary School (Annual Tuition)	Dh58,179.67	Dh65,649.00
1 Bedroom Apartment Rental (City Centre)	Dh7,200.77	Dh8,973.68
1 Bedroom Apartment Rental (Outside City Centre)	Dh4,821.40	Dh5,500.89
3 Bedroom Apartment Rental (City Centre)	Dh14,969.33	Dh16,576.92
3 Bedroom Apartment Rental (Outside City Centre)	Dh9,800.93	Dh10,907.14

Round-Up of Basic Groceries/Essentials:

Item	Abu Dhabi	Dubai
Milk (1 litre)	Dh6.94	Dh6.61
White Bread (500g)	Dh5.98	Dh5.43
White Rice (1 kg)	Dh7.88	Dh9.38
Eggs (12)	Dh11.91	Dh12.30
Local Cheese (1 kg)	Dh46.67	Dh43.80
Chicken Fillets (1 kg)	Dh34.81	Dh32.65
Apples (1 kg)	Dh9.12	Dh9.68
Bananas (1 kg)	Dh7.30	Dh7.12
Tomatoes (1 kg)	Dh5.38	Dh5.29
Potatoes (1 kg)	Dh4.27	Dh3.91

Preferred Accommodation Choices for Expats

Serviced apartments ensure more flexible stay accommodation in Dubai and Abu Dhabi. Expats can book ready-to-move properties with full furnishings, great amenities, and hotel-style services with flexible short/long-term leases. They can extend their stays and settle into the city before looking for permanent accommodation in the future. Apartments have lower nightly costs than hotels, with discounts/special packages for extended stays and all-inclusive rates (covering utilities, Wi-Fi, and services like housekeeping).

Where to Stay in Dubai & Abu Dhabi for Expats

Now that you have a basic idea of what to expect in terms of living costs, here are some of the top areas to book family accommodation in Abu Dhabiand Dubai.

Top Neighbourhoods in Dubai

Here is a glimpse of the best neighbourhoods in Dubai that are usually preferred by expats:

Parameter	Downtown Dubai & Business Bay	Dubai Marina & JBR	Jumeirah Village Circle (JVC)
Cost of Living	High (approx Dh8,500-12,000+ per month for 1 bedroom units)	High (approx Dh8,000-11,000 per month for 1 bedroom units)	Moderate (approx Dh5,000-6,500 per month for 1 bedroom units)
Connectivity	Excellent- easy access to Sheikh Zayed Road and Dubai Metro Red Line	Highly walkable, access to Dubai Tram and Metro links, along with water taxis	Moderate-mainly car-dependent with frequent bus services to the Dubai Metro
Amenities	Mega malls, fine dining, healthcare clinics and premier gyms	Beach access, waterfront promenades, cafes, supermarkets and bustling nightlife	Community parks, community pools, local retail outlets and pet-friendly areas
Business Hubs	Downtown, Business Bay and DIFC (Dubai International Financial Centre)	Media City, JLT (Jumeirah Lake Towers), Internet City	Barsha Heights, Al Quoz and JLT
Landmarks	Burj Khalifa, The Dubai Mall, Dubai Fountain, Dubai Opera	The Beach at JBR, Marina Walk	Circle Mall

Top Neighbourhoods in Abu Dhabi

Here is a look at the top neighbourhoods in Abu Dhabi for expats to consider (they are popular among expat families):

Parameter	Al Reem Island	Saadiyat Island	Khalifa City
Cost of Living	Moderate to High (1 bedroom apartment rentals are Dh5,000-8,000 per month)	High to Luxury (1 bedroom apartment rentals are Dh9,000 per month and upwards)	Affordable to Moderate (1 bedroom apartment rentals are Dh3,500-5,500 per month)
Connectivity	Good road connectivity to downtown, walkable area	Car-dependent and linked through contemporary highways	Outer suburb near the main highway linking to Dubai
Amenities	Reputed schools, waterfront views, medical centres, and supermarkets in high-rises	Public beaches with white sands, beach resorts and elite international schools	Local souks, big villa compounds, family parks and sports academies
Business Hubs	Abu Dhabi Global Market (ADGM) on Al Maryah Island	Downtown Abu Dhabi, Al Reem commercial centres	Abu Dhabi International Airport zone and Masdar City
Landmarks	Reem Central Park, The Galleria Mall	Louvre Abu Dhabi, Zayed National Museum	Bawabat Al Sharq Mall

Conclusion

Expats can compare the living costs in both cities side-by-side before coming to a decision. TheSqua.re offers verified and spacious family accommodation in Abu Dhabi and Dubai across prime areas with flexible leases and corporate-friendly amenities. Booking apartments can save costs on laundry, dining out (with fully-equipped kitchens) and the overall stay (with all-inclusive and lower nightly rates). Both cities have their own perks for expats, although living costs may be slightly lower in Abu Dhabi in comparison to Dubai.

Author Profile

Adam Regan: Deputy Editor

Features and account management. 7 years media experience. Previously covered features for online and print editions.

Email Adam@MarkMeets.com