During the first half of 2024, the UAE experienced a significant increase in both the cost of living and quality of life. Numbeo’s latest report shows that Dubai’s cost of living index ranking climbed from 138th to 70th, while Abu Dhabi jumped from 164th to 75th.
According to a Khaleej Times report, this surge is attributed to the higher prices for petrol, which adjusted from Dh2.71 per litre in January to Dh3.22 in May, and then to Dh3.02 in June.
Rental markets in Dubai and Abu Dhabi also saw increases, influenced by an influx of foreign professionals and affluent individuals. Dubai’s rental registrations grew by 5.9% to 255,178 in the year to May 2024. Concurrently, the Dubai Statistics Centre indicated a rise in inflation, largely driven by housing costs and transportation.
To control inflation, the UAE Ministry of Economy enforced price caps on nine essential commodities and required retailers to obtain permission before hiking prices.
In terms of quality of life, Abu Dhabi’s ranking improved dramatically from 54th to 17th, and Dubai’s from 57th to 49th, according to Numbeo. The World Bank also recognized the UAE as a high-income country, alongside nations like Canada and Japan. The UAE government has supported these improvements through various initiatives, including mandatory healthcare insurance starting next year, which is expected to further enhance the quality of life for residents.
