Table of Contents
- The Truth About Dubai: What No One Tells You Beforehand
- Living in Dubai: From Affordable to Luxurious – All Options Unveiled
- Food and Dining: From Street Food to Michelin Stars
- Transport and Mobility: More Than Just Metro and Taxi
- Lifestyle and Leisure: The Real Cost of Living in Dubai
- Business Costs: Office, Networking and the Business Lifestyle
- Three Realistic Budget Scenarios for Entrepreneurs
- Hidden Costs and Surprises
- My Conclusion: Is Dubai Financially Worth It?
- Frequently Asked Questions on the Cost of Living in Dubai
Let me start with an honest statement: Dubai is more expensive than you think. But also cheaper than you fear.
Paradoxical? Yes, it is.
Every day I hear from entrepreneurs who write, “Richard, I’m thinking about moving to Dubai. But what does it really cost to live there?”
And here’s the problem: Most budget calculations you find online are either hopelessly outdated or far from reality. Moreover, they rarely consider that as an entrepreneur you have different needs compared to a backpacker.
That’s why today I want to guide you through the real cost of living in Dubai — transparently and based on daily experience, not just as a theoretical advisor.
You’ll get an honest calculation from me. Including every expense most others conveniently skip.
Ready for the unfiltered truth about Dubai budgets?
The Truth About Dubai: What No One Tells You Beforehand
Before we get into the numbers, let me clear up a widespread misconception.
Dubai is not Monaco. But it’s also not Bangkok.
In terms of taxes and costs, the city is in a league of its own. In other words: The comparison standards you’re used to only work here to a limited extent.
The Dubai Factor: Why Usual Budgeting Rules Don’t Apply
In Dubai you pay no income tax — that’s well-known. But did you know this also shapes the city’s entire pricing structure?
Restaurants, service providers, and landlords calculate differently when they know their customers have more net income. The city thrives on international business—and that is reflected in price levels.
Concretely: Lunch often costs as much here as in Munich. The difference? You have significantly more money left in your pocket in Dubai.
The Three Price Tiers of Dubai
Dubai operates in three distinct price segments:
- Local Dubai: Emirati and Indo-Pakistani businesses — affordable and authentic
- Expat Dubai: Western standards at moderate prices
- Luxury Dubai: International luxury brands at premium rates
As an entrepreneur, you’ll mostly navigate between the second and third segments. The art lies in switching smartly between them.
The Seasonality Factor
What hardly anyone explains: Dubais prices can swing dramatically by season.
From November to March (peak season), you’ll pay up to 40% more for hotels, restaurants, and some services. From June to September, you can score spectacular deals in many areas.
This can have a big impact on your annual planning.
Living in Dubai: From Affordable to Luxurious – All Options Unveiled
Your biggest expense in Dubai is housing. But even here, the differences by location and timing are dramatic.
2025 Rental Prices: Realistic Figures by Neighborhood
Here are the current average yearly prices (in Dubai, rents are paid annually):
| Neighborhood | 1-Bedroom Apartment | 2-Bedroom Apartment | 3-Bedroom Villa |
|---|---|---|---|
| Dubai Marina | 80,000-120,000 AED | 130,000-180,000 AED | 250,000-400,000 AED |
| Business Bay | 70,000-110,000 AED | 120,000-170,000 AED | – |
| DIFC | 90,000-140,000 AED | 150,000-220,000 AED | – |
| JLT (Jumeirah Lake Towers) | 60,000-90,000 AED | 100,000-140,000 AED | – |
| Al Barsha | 50,000-80,000 AED | 80,000-120,000 AED | 180,000-280,000 AED |
| Arabian Ranches | – | – | 200,000-350,000 AED |
Converted to euros (2025 rate: 1 AED ≈ 0.25 EUR), that’s between €1,000 and €9,000 monthly rent.
Additional Housing Costs: The Hidden Extras
Beyond rent, you need to budget for:
- DEWA (electricity/water): 200–600 AED/month, depending on unit and season
- Internet: 300–500 AED/month for business speed
- Chiller (air conditioning): 1–3 AED per sqft/year (not in all buildings)
- Parking: 2,000–8,000 AED/year, location-dependent
- Security Deposit: 5–10% of annual rent
- Agency Commission: 5% of annual rent (one-time payment)
In total, expect to pay around 30–40% on top of rent for these extra costs.
My Tip for Entrepreneur Housing
For business owners, I recommend Business Bay or JLT—good compromise between cost and lifestyle. You’re close to the business districts, but avoid the Marina or DIFC premium.
Also: Always negotiate! Especially on annual contracts, it’s common to get 10–15% discounts.
Food and Dining: From Street Food to Michelin Stars
Eating in Dubai is a culinary world tour. But what does this variety really cost?
Daily Meals: Realistic Costs for Different Styles
Here’s my breakdown for various eating habits:
The Budget Gourmet (Local Food)
- Breakfast: Local café – 15–25 AED
- Lunch: Shawarma or Indian restaurant – 20–35 AED
- Dinner: Local restaurant – 40–70 AED
- Daily Total: 75–130 AED (€19–33)
The Business Lifestyle (Expat Standard)
- Breakfast: Hotel or Western café – 40–60 AED
- Business lunch: Restaurant in DIFC/Marina – 80–150 AED
- Dinner: Good restaurant – 120–200 AED
- Daily total: 240–410 AED (€60–103)
The Luxury Lover (Premium Dining)
- Breakfast: 5-star hotel – 80–120 AED
- Lunch: Fine dining – 200–350 AED
- Dinner: Michelin level restaurant – 400–800 AED
- Daily total: 680–1,270 AED (€170–318)
Self-Catering: Supermarket Prices in Detail
If you want to cook for yourself, here are key supermarket prices:
| Product | Carrefour/Lulu | Waitrose/Spinneys | Organic Stores |
|---|---|---|---|
| Milk (1L) | 7–9 AED | 12–15 AED | 18–25 AED |
| Bread (loaf) | 8–12 AED | 15–20 AED | 25–35 AED |
| Eggs (12) | 12–15 AED | 18–25 AED | 30–40 AED |
| Chicken breast (1kg) | 25–35 AED | 35–45 AED | 55–75 AED |
| Salmon (1kg) | 80–120 AED | 120–160 AED | 180–250 AED |
Cooking for yourself will cost around 1,200–2,500 AED per month, depending on your standards.
Business Meals: Networking and Client Hospitality
As an entrepreneur, count business dinners as extra. Typical expenses:
- Business lunch (2 people): 200–400 AED
- Client dinner (4 people): 800–1,500 AED
- Networking event dinner: 300–600 AED per person
Budget 3,000–6,000 AED per month for business hospitality.
Transport and Mobility: More Than Just Metro and Taxi
Dubai is a car city. You need to factor this into your budget.
The Car Question: Buy, Lease or Taxi?
Here’s the real cost of each option:
Buying a Car (Mid-range)
- Car price: 80,000–150,000 AED
- Insurance: 5,000–12,000 AED/year
- Fuel: 400–800 AED/month
- Maintenance: 3,000–6,000 AED/year
- Parking fees: 1,000–3,000 AED/year
- Total monthly cost: 1,500–2,500 AED
Leasing a Car (Business)
- Lease payment: 1,800–3,500 AED/month
- Insurance: usually included
- Fuel: 400–800 AED/month
- Maintenance: usually included
- Total monthly cost: 2,200–4,300 AED
Taxi and Ride-Sharing
- Daily rides: 80–150 AED/day
- Careem/Uber Premium: +50% surcharge
- Monthly cost: 2,400–4,500 AED
Public Transport: The Underrated Option
Dubai has an excellent metro system. Many entrepreneurs overlook this alternative:
- Monthly Metro Pass: 350 AED
- Taxi for “last mile”: 300–600 AED/month
- Total cost: 650–950 AED/month
This only works, however, if both your workplace and home are on the metro line.
Business Transport: Representation and Client Visits
For client meetings and representation, also budget for:
- Chauffeur service: 150–300 AED/hour
- Premium taxi for clients: 50–100 AED per ride
- Monthly business rides: 1,000–2,500 AED
Lifestyle and Leisure: The Real Cost of Living in Dubai
Dubai is all about lifestyle. But how much does it really cost?
Sports and Fitness: From Gyms to Golf
Health-conscious entrepreneurs have plenty of fitness options:
| Activity | Monthly Cost | Yearly Cost |
|---|---|---|
| Standard gym | 300–500 AED | 3,000–5,000 AED |
| Premium fitness club | 800–1,500 AED | 8,000–15,000 AED |
| Personal trainer | 1,200–2,500 AED | 12,000–25,000 AED |
| Golf club membership | – | 15,000–50,000 AED |
| Tennis/Squash | 400–800 AED | 4,000–8,000 AED |
Wellness and Health: Investing in Yourself
Dubai boasts top-tier wellness options:
- Spa treatment: 300–800 AED per session
- Monthly massage: 400–600 AED
- Dentist (checkup): 200–500 AED
- General practitioner: 300–600 AED per visit
- Health insurance: 6,000–15,000 AED/year
Social Life: Networking and Entertainment
Your social calendar accounts for a major part of your budget:
Going Out and Networking
- Business drinks: 60–120 AED per evening
- Club/bar premium: 200–500 AED per evening
- Theatre/opera: 150–500 AED per ticket
- Concerts: 300–1,500 AED per ticket
Hobbies and Interests
- Art/culture: 200–800 AED/month
- Shopping (clothes): 1,000–5,000 AED/month
- Electronics/gadgets: 500–2,000 AED/month
Travel and Holidays: Dubai as a Hub
One advantage of Dubai: It’s a central base for travels.
- Weekend trips (Oman/Muscat): 1,500–3,000 AED
- Flights to Europe: 1,500–4,000 AED
- Asia trips: 2,000–5,000 AED
- Business travel: 3,000–8,000 AED per trip
Plan on 2–4 leisure trips a year, in addition to business travel.
Business Costs: Office, Networking and the Business Lifestyle
As an entrepreneur, you’ll face additional business-specific costs—often higher than you’d expect.
Office Space: From Coworking to Corporate HQ
| Office Type | Monthly Cost | Additional Costs |
|---|---|---|
| Coworking space | 800–2,000 AED | Internet usually included |
| Serviced office (small) | 3,000–6,000 AED | Utilities usually included |
| Private office (50sqm) | 8,000–15,000 AED | +3,000–5,000 AED utilities |
| Prime location DIFC | 15,000–30,000 AED | +5,000–8,000 AED utilities |
Business Setup and Licensing
Here are the one-time and recurring business expenses:
- Freezone license setup: 15,000–25,000 AED (one-time)
- Annual license renewal: 8,000–15,000 AED
- Emirates ID: 1,000 AED (every 3 years)
- Residence visa: 3,000–5,000 AED (every 3 years)
- Medical test: 300–500 AED (yearly)
Networking and Business Development
Networking is Dubai’s lifeblood—at a price:
- Business club membership: 5,000–20,000 AED/year
- Networking events: 200–1,000 AED per event
- Business dinners: 3,000–6,000 AED/month
- Corporate gifts: 1,000–3,000 AED/month
- Marketing/PR events: 5,000–20,000 AED per event
Professional Services
Ongoing business costs you cant avoid:
- Accounting services: 2,000–5,000 AED/month
- Legal services: 1,500–3,000 AED/hour
- Business consulting: 2,000–8,000 AED/day
- IT support: 1,000–3,000 AED/month
- Marketing agency: 5,000–20,000 AED/month
Three Realistic Budget Scenarios for Entrepreneurs
Now let’s bring it all together. Here are three realistic budgets for different types of entrepreneurs.
Scenario 1: The Pragmatic Starter (Monthly: 12,000–15,000 AED)
You’re starting out in Dubai and want to budget sensibly:
| Cost Category | Monthly Cost (AED) | Budget Share (%) |
|---|---|---|
| Apartment (JLT 1-bed) | 6,000 | 45% |
| Food (local/expat mix) | 2,500 | 19% |
| Transport (metro + taxi) | 1,200 | 9% |
| Fitness/wellness | 600 | 4% |
| Business costs | 1,500 | 11% |
| Social/entertainment | 800 | 6% |
| Miscellaneous/cushion | 800 | 6% |
| Total | 13,400 | 100% |
That’s about €3,350 per month—a solid, if relatively frugal, standard of living.
Scenario 2: The Established Entrepreneur (Monthly: 25,000–30,000 AED)
Your business is up and running and you want to live comfortably:
| Cost Category | Monthly Cost (AED) | Budget Share (%) |
|---|---|---|
| Apartment (Marina 2-bed) | 12,000 | 43% |
| Food (Expat Standard) | 4,500 | 16% |
| Transport (leasing) | 3,000 | 11% |
| Fitness/wellness | 1,500 | 5% |
| Business costs | 3,500 | 13% |
| Social/entertainment | 2,000 | 7% |
| Travel | 1,500 | 5% |
| Total | 28,000 | 100% |
That’s roughly €7,000 per month—for a comfortable lifestyle with all the amenities.
Scenario 3: The Luxury Entrepreneur (Monthly: 50,000+ AED)
You’ve made it and intend to enjoy all Dubai has to offer:
| Cost Category | Monthly Cost (AED) | Budget Share (%) |
|---|---|---|
| Apartment (DIFC penthouse) | 20,000 | 36% |
| Food (fine dining) | 8,000 | 14% |
| Transport (premium car) | 6,000 | 11% |
| Fitness/wellness/golf | 4,000 | 7% |
| Business costs | 8,000 | 14% |
| Social/entertainment | 5,000 | 9% |
| Travel (premium) | 4,000 | 7% |
| Shopping/luxury | 1,000 | 2% |
| Total | 56,000 | 100% |
That’s around €14,000 per month—a lifestyle only very successful entrepreneurs can afford.
Hidden Costs and Surprises
Now for the expenses no one warns you about—which can be expensive lessons.
The Biggest Budget Traps
Ramadan Effect
During Ramadan (one month each year), many restaurants are closed during the day. Your food costs can rise 30–50% as you’re forced to opt for pricier alternatives.
Summer Power Bills
From June to September, your electricity bills can skyrocket. Instead of 300 AED, you can easily pay 800–1,200 AED per month just for air conditioning.
Visa Runs and Compliance
Every 6 months you need to briefly leave the country (a visa run). Cost: 1,000–2,500 AED per trip.
Unexpected Price Hikes
You need to budget for these increases:
- Rent: Up 5–15% per year in popular neighborhoods
- Restaurants: 8–12% price rises per year
- Transport: Fuel prices fluctuate sharply (±20% per year)
- Services: General inflation around 3–5% per year
Seasonal Fluctuations
Your monthly costs will vary by season:
- Peak Season (Nov–Mar): +20–40% for restaurants and hotels
- Ramadan: +30–50% for available restaurants
- Summer: +50–100% for electricity
- Shopping festivals: Irresistible deals can blow your budget
Emergency Costs and Buffer
Always set aside a financial buffer:
- Medical emergencies: 5,000–20,000 AED
- Visa/legal issues: 3,000–15,000 AED
- Car repairs: 2,000–10,000 AED
- Business crisis management: 10,000–50,000 AED
My advice: Keep 3–6 months’ expenses as a safety cushion at all times.
My Conclusion: Is Dubai Financially Worth It?
After all these figures, the big question: Are the costs justified by the benefits?
My honest answer: It depends.
Dubai is Worth It If…
- Your net monthly income is at least 15,000–20,000 AED
- Your tax savings outweigh the higher living costs
- You value the lifestyle and networking opportunities
- Your business activities actually benefit from being in Dubai
- You’re flexible and adaptable
Dubai is NOT Worth It If…
- You’re moving here just for the low taxes
- Your budget is just below 12,000 AED per month
- You’re set in your ways and dislike adapting
- Your business has no international component
- You have problems with heat and artificial environments
The Tax vs. Cost of Living Equation
Here’s a concrete example:
Suppose you earn €200,000 net in Germany, paying about €60,000 in taxes. In Dubai, you pay zero tax, but spend €8,000–12,000 more per year on living expenses.
Your net savings: €48,000–52,000 per year.
That definitely justifies the move—if the lifestyle suits you.
My Final Recommendation
Try Dubai for 3–6 months first. Rent a furnished place, use coworking spaces, and really experience daily life here.
Only after you’ve lived the actual costs and lifestyle should you decide for good.
Dubai isn’t cheap. But it can take your life and business to a whole new level—if the conditions fit.
If you have questions about your specific situation, feel free to contact me. I’ll be happy to help you calculate your numbers.
Yours, RMS
Frequently Asked Questions on the Cost of Living in Dubai
What is the minimum amount I need to live in Dubai?
As an entrepreneur you should budget at least 12,000–15,000 AED (€3,000–3,750) per month for a basic but comfortable standard of living. Lower than this, it’s difficult to keep up the quality a businessperson needs.
Are living costs in Dubai higher than in Germany?
Yes, the pure cost of living is about 20–40% higher than in large German cities. However, you pay no income tax—that often more than offsets the extra costs, provided your earnings are sufficient.
What hidden costs should I expect in Dubai?
The biggest hidden costs are: extreme summer electricity bills (up to 1,200 AED/month), visa runs every 6 months, security deposits (often 5–10% of annual rent), and seasonal surcharges during peak season.
Is it possible to live cheap in Dubai?
Yes, but with caveats. Neighborhoods like Al Barsha or Deira are much more affordable. But you’ll face longer commutes and fewer networking opportunities, which can impact your business.
Should I buy a car in Dubai or are taxis enough?
For entrepreneurs I recommend a car or leasing. Taxis are available, but not practical or cost-effective for daily business. A mid-range lease costs around 2,200–3,000 AED monthly.
How expensive is eating out in Dubai really?
The differences are huge: A local Indian restaurant costs 20–35 AED, a business lunch in the Marina 80–150 AED, fine dining 200–500 AED per person. As a businessperson, count with 4,000–8,000 AED per month for all meals.
What are the best areas for entrepreneurs?
For starters I recommend Business Bay or JLT—good balance of cost, location, and networking. DIFC is premium but pricey, Marina is lifestyle-focused. Avoid Downtown Dubai due to tourist crowds.
How much are annual visa and license costs?
Budget about 12,000–20,000 AED yearly for visa renewals, Emirates ID, medical tests and license renewal. In addition, every 3 years you’ll have higher costs for renewing your residence visa.
Is the cost of living in Dubai rising quickly?
Yes, Dubai experiences annual inflation of about 8–12% on rents and restaurants. Especially in popular expat areas, prices rise disproportionately. Plan for a 10–15% increase each year.
At what level of income does Dubai make tax sense?
As a rule of thumb: From €150,000 annual income upwards, Dubai starts to make sense if you offset the tax savings against higher living costs. Below that, the savings are often too small to justify the effort.
