United Arab Emirates, Abu Dhabi

Overview

United Arab Emirates, Abu Dhabi Abu Dhabi is the capital of, and the second largest city in the United Arab Emirates. Abu Dhabi houses important offices of the federal government, and is the seat for the United Arab Emirates Government and the home for the Emirati Royal Family. Abu Dhabi has grown to be a cosmopolitan metropolis. One of the world's largest producers of oil, Abu Dhabi has actively attempted to diversify its economy in recent years through investments in financial services and tourism.

The United Arab Emirates is in the Middle East, bordering the Gulf of Oman and the Arabian Gulf, between Oman and Saudi Arabia. The climate is desert, but cooler in the eastern mountains.

The official language is Arabic. English is widely understood and is the main business language. The main religion is Islam.

The economy of the United Arab Emirates (UAE) is that of a developing country. The UAE currently has one of the fastest growing economies in the world.

Expatriate business dress is typically a suit. Dress codes in Dubai are relatively liberal however other areas such as Sharjah are more conservative. Expatriates should be careful not to offend Islamic sensitivities.

The security risk for expatriates in the United Arab Emirates is low. Risks include low levels of petty crime, the underlying threat of terrorism, and indiscriminate attacks on expatriates or foreign interests by extremists in the region.

The currency of United Arab Emirates is the Utd. Arab Emir. Dirham (AED). Banking is on a par with that of Western Europe and North America.

Medical facilities are good, however the cost of treatment for expatriates can be high. Proof of insurance or the means to settle any medical fees is generally required before treatment is provided. Cases of Middle East respiratory syndrome coronavirus have been reported.

The population of Abu Dhabi is 2.8 Million (2019 est.), while the inflation rate (CPI) is -2.2% for the United Arab Emirates as at September 2019.

Xpatulator Hypothetical Tax for the United Arab Emirates is based on the current personal income tax rate of 0% as there is currently no personal income tax.

Cost Of Living

The cost of living for expatriates / professional migrants in Abu Dhabi as at 1 October 2019 is very high in comparison to other places in the world.

We have collected prices for the same items, world wide, and converted them to $USD so that we can compare the cost of 13 different baskets in 780 global locations. For each basket, compared to New York, the equivalent cost in Abu Dhabi is as follows:
1) Alcohol (where available) & Tobacco: for items such as beer, spirits, wine and tobacco related products such as cigarettes. A basket costing USD$1000 in New York costs USD$1220
2) Clothing: for items such as business, casual and children's clothing and footwear. A basket costing USD$1000 in New York costs USD$1090
3) Communication: for various communication costs such as home telephone rental, internet subscription, mobile service provider tariff and data costs. A basket costing USD$200 in New York costs USD$304
4) Education: for items such as creche / pre-school fees, primary school fees, high school fees and tertiary study fees. A basket costing USD$30000 in New York costs USD$31200
5) Furniture & Appliances: for items such as dining table and chairs, home entertainment, kitchen appliances, and sofas. A basket costing USD$2500 in New York costs USD$2975
6) Groceries: for items such as consumables, cleaning products, dairy, fresh fruit & vegetables, general food products, snacks, soft drinks. A basket costing USD$1000 in New York costs USD$800
7) Healthcare: for general heath care, doctor visits, hospital stays, non-prescription medicine, and medical insurance. A basket costing USD$1000 in New York costs USD$770
8) Household Accommodation: for items such as apartment rent, house rent, property purchase, mortgage rate, and utilities. A basket costing USD$5000 in New York costs USD$3950
9) Miscellaneous: for items such as dry cleaning, linen, magazines, newspapers, office supplies, and postage stamps. A basket costing USD$500 in New York costs USD$550
10) Personal Care: for items such as cosmetics, hair care, and toiletries. A basket costing USD$500 in New York costs USD$360
11) Recreation & Culture: for items such as books, cinema, sport and theatre tickets. A basket costing USD$500 in New York costs USD$645
12) Restaurants Meals Out and Hotels: for items such as hotel daily room rates, meals and beverages in a restaurant, and take away food and beverages. A basket costing USD$1000 in New York costs USD$830
13) Transport: for items such as fuel (petrol/gasoline), car hire, public transport, vehicle purchase and maintenance. A basket costing USD$1000 in New York costs USD$530

Abu Dhabi is 24.5% more expensive than Houston TX for groceries, 85.9% more expensive for household costs than Kuala Lumpur, and -9.3% cheaper for transport costs than Dubai.

Abu Dhabi is ranked as a some hardship location.

The hardship premium for Abu Dhabi for an expat from Perth, is for example 10%, i.e. host location (Abu Dhabi) premium of 20% minus home (Perth) location premium of 10%.

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The cost of living for expatriates / professional migrants in Abu Dhabi as at 1 October 2019 is very high in comparison to other places in the world.

Abu Dhabi is ranked as a some hardship location.