The cost of living is the cost incurred to maintain a certain standard of living. Changes in the cost of living over time are often operationalized in a cost of living index. Cost of living calculations are also used to compare the cost of maintaining a certain standard of living in different geographic areas. Geographic differences in the cost of living can be measured in terms of purchasing power parity. One of the most current topics regarding the United Arab Emirates concerns the cost of living. The Economist Intelligence Unit ranked Dubai and Abu Dhabi 71st and 82nd among the world's most expensive cities to live in, while Mercer HR Consulting placed them 25th and 30th respectively. The cost of living in Dubai has increased rapidly and, more recently, the same is happening in Abu Dhabi. The cost of living will definitely increase in the coming years, most likely due to housing. While rent alone should account for at least 50% of the cost of living (although official CPI data places it between 30% and 40%), we felt it was important to look at other available goods and services. We have therefore put together a data sheet so you can calculate your cost of living, if you came to the UAE. There are numerous cost of living indicators available, including those from the Economist and Mercer which are known to provide cost of living comparisons between baskets of goods internationally. While this is particularly helpful, we've gone on the road to find out the actual prices of certain goods and services, so you can compare them to actual products in your home countries. These providers, while far superior in their offering, charge an astronomical price for their information. While most cost of living surveys require such data, we at Grapeshisha have provided all the relevant information we have obtained in a spreadsheet and are offering it to you for free to help you make your decisions. We provide this data with a disclaimer that the information is intended to assist you in making your own decisions, but that you should not base all of your decisions on a single resource. The cost of living in Dubai is relatively high and can be compared to other major cities in the world. That said, it is possible to make smart choices about certain items of assets and lifestyle choices to reduce your overall cost of living.
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