Oman tops Gulf as most affordable country in cost of living index

Dubai: Oman has been ranked as the most affordable Gulf country for overall cost of living, according to the 2025 edition of the World Cost of Living Index, an annual study benchmarking living expenses against New York City, which is set as the reference point with a score of 100.

Kuwait followed Oman as the second-most affordable Gulf country, ranking 80th globally out of 139 countries and 12th in the Arab world. Kuwait scored 40.4 points on the index, meaning its overall cost of living is 40.4 per cent of New York City’s.

Key metrics used in the ranking included average rental prices (residential and commercial), grocery prices, restaurant prices, purchasing power, and overall living costs including rent.

In Kuwait, rent prices were 21.9 per cent of New York’s levels, while overall living costs, including rent, stood at 32.2 per cent. Grocery and restaurant prices were 33.7 per cent and 40.8 per cent, respectively. Additionally, the Kuwaiti dinar demonstrated a purchasing power 1.74 times stronger than the US dollar in New York.

Within the Gulf, Oman ranked as the most affordable, followed by Kuwait in second place, with Saudi Arabia, Qatar, Bahrain, and the UAE rounding out the rankings in that order.

Globally, countries with the lowest cost of living included Pakistan, Libya, Egypt, India, Afghanistan, Madagascar, Bangladesh, Russia, and Paraguay.

In contrast, the most expensive countries were Switzerland, the U.S. Virgin Islands, Iceland, the Bahamas, Singapore, Hong Kong (China), Barbados, Norway, Papua New Guinea, and Denmark.