Dubai: While the cost of living has supposedly fallen in Dubai and Abu Dhabi, Gulf News readers said they have yet to experience the positive impact.

Tokyo, Moscow and New York are ranked as the most expensive cities in Asia, Europe and the US respectively, according to the 2011 Mercer report on the worldwide cost of living. Abu Dhabi has fallen 17 rankings and Dubai is 26 rankings lower on the list.

Agniyah Shaikh, a Sharjah resident, said: "In the UAE, rents have come down. But the rest of them — school fees, groceries, clothing and electronics, utility bills including electricity, water, gas — have gone up."

She said the lack of higher salaries hasn't helped the situation either. "I'm amused and amazed at the same time when someone says cost of living in Dubai and Abu Dhabi has come down," added Agniyah.

Abdullah Galib from Abu Dhabi said: "How has living here become less expensive? I am paying more for fuel than before, and the price of some goods has gone up too." Maria Khalil in Dubai also agreed because her cost of living has "more or less stayed the same for the past couple of years". She hasn't noticed any change in her bills.

In spite of the lack of change so far, most Dubai and Abu Dhabi expatriates would agree with Maria when she added: "If it appears that Dubai and Abu Dhabi are becoming less expensive cities to live in, then by all means, this is welcome news."