Business | Economy
Dubai remains expensive place to live: survey
News that Dubai is now in the top 20 list of the latest Cost of Living Survey and the most expensive city in the Gulf, may or may not come as a surprise to most expatriates.
- By Rachna Uppal, Staff Reporter
- Published: 23:04 July 7, 2009
- Dubai is ranked at number 20 in the global Cost of Living index compiled on an annual basis by international human resources consultancy Mercer.
- Image Credit: Gulf News Archive
Dubai: News that Dubai is now in the top 20 list of the latest Cost of Living Survey and the most expensive city in the Gulf, may or may not come as a surprise to most expatriates.
Dubai is ranked at number 20 in the global Cost of Living index compiled on an annual basis by international human resources consultancy Mercer - having moved up from place 52 in the 2007 list. The capital Abu Dhabi has jumped 39 places, from 65 in 2007 to 26 this year.
The survey measures the spending habits of expatriate communities by comparing the cost of over 200 items in each location, including housing, transport, food, clothing, household goods and entertainment. The information was compiled in March 2009.
A similar survey was conducted in March 2008. The survey measures the city rankings against the benchmark which is New York.
"In order to be able to assess the cost of living one has to look at the main components of inflation and in this country it is housing and food prices," says Philippe Dauba-Pantanacce, senior economist for the Middle East and North Africa region at Standard Chartered Bank in Dubai.
Although some easing of rents and prices has been observed in the past few months, these decreases are relative, and, combined with salary freezes or even declines, have not yet made a big impact on cost of living.
Though important, falling inflation has not been able to halt the rise of UAE cities up the rankings. A strengthening dollar, and the relative weakness of other currencies proved to be a stronger factors, as other cities dropped lower down the table.
For example, a weak pound contributed to London falling below the Top 10 cities for cost of living for the first time since 2001, while an appreciating yen against the dollar pushed Japanese cities Tokyo and Osaka into the top two spots respectively. In the cases of Dubai and Abu Dhabi, a stronger US dollar meant an increase in rankings for these cities.
"If the currency of the home country is gaining value, with the same amount of money, the expatriate will be able to purchase more goods in the host country currency, and therefore will gain from currency movement," said Bassam Gazal, who heads the Mercer Survey practice across the Middle East.
How do you rate the cost of living in the UAE now? How has it affected your lifestyle?
Your comments
I think the city should study policies to control the rents. Also, I suggest to analyze the process of creating small companies, that can help the development of the city ( Make the process to create small companies easier)and the expatriates, specially women can benefit of this opportunities.
Amal
Dubai,UAE
Posted: July 08, 2009, 10:39
No doubt, cost of living in dubai is high. I think all this was because of rapid increase in house rents but now as the house rents have been decreasing so can expect some relief. Although there is no change in the price of all essential commodities . Any how I appreciate the efforts of RULERS for most safe environment in UAE.Looking in to it, life is not expensive then and ideal place to work
M. S. Khan
Ajman,UAE
Posted: July 08, 2009, 10:27
The rents have indeed declined considerably in Dubai (nearly 30 -40%) so it is a relief in recent months.Still you have to spend a big chunk of your earnings while only moving / driving on Dubai roads.
Rumaisa
Abu Dhabi,UAE
Posted: July 08, 2009, 09:59
The rent criteria of the country pays a major role in making the cost of living higher in the UAE as a whole. When the rents increases, its for sure that it will affect the entire economical structure
Khozema
Dubai,UAE
Posted: July 08, 2009, 09:49
From my experience Dubai is expensive in all means, a modrate restaurants will cost 100 per head sometimes,Charged parking
Sibtain Bukhari
Dubai,UAE
Posted: July 08, 2009, 09:29
cost of living particularly Dubai is high. Housing/Rent cost alone can justify the survey. People needs to be stingy and wise in spending their money.
From A Reader
Dubai,UAE
Posted: July 08, 2009, 08:18
I think the cost of living in Abu dhabi is higher than Dubai.I dont know on what basis this survey was made.
Linob
Abu Dhabi,UAE
Posted: July 08, 2009, 08:16
We can't even imagine! This is too much. The rent decreased little, it doesn't mean that the living cost in Dubai is also came down! No. All essential commodities are available with the same price in all Super/Hyper Market and almost the price remain same.
Ponnachan Joseph
Dubai,UAE
Posted: July 08, 2009, 07:34
Cost of living is too high that almost half of salary goes to rental fee. It's like -- ordinary workers have no savings at all.
Rosef
Dubai,UAE
Posted: July 08, 2009, 07:30
I have lived in this country for the past 40 years and seen the cost of living rising rapidly over the past ten years. However, when one considers the safe clean environment and the harmonious co-existence of so many nationalities living together, the cost of living becomes worth it. Dubai is the best city in the world to live in.
Ahmad Zuki
Sharjah,UAE
Posted: July 08, 2009, 00:38
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