Table of Contents
- The Dubai Reality: What No One Tells You in Advance
- Living in Dubai: From Affordable to Luxurious – All Options Open
- Food and Gastronomy: From Street Food to Fine Dining
- Transport and Mobility: More Than Just Metro and Taxi
- Lifestyle and Leisure: What Living in Dubai Really Costs
- Business Costs: Office, Networking and Business Lifestyle
- Three Realistic Budget Scenarios for Entrepreneurs
- Hidden Costs and Surprises
- My Conclusion: Is Dubai Worth It Financially?
- Frequently Asked Questions about Dubai Living Costs
Let me start with an honest statement: Dubai is more expensive than you think. But also more affordable than you fear.
Sounds paradoxical? It is.
Every day I get messages from entrepreneurs saying: Richard, I’m thinking of moving to Dubai. But what does it really cost to live there?”
And here’s the problem: Most of the budget calculations you find online are either hopelessly outdated or completely out of touch. On top of that, they don’t consider that, as an entrepreneur, your needs are different from a backpacker’s.
That’s why today I’m taking you on a transparent journey through the real cost of living in Dubai. Not as a theoretical consultant, but as someone who deals with these numbers in practice every day.
You’re going to get an honest calculation from me. With all the costs others often prefer to hide.
Ready for the truth about Dubai budgets?
The Dubai Reality: What No One Tells You in Advance
Before we get into the numbers, let’s clear up a common misconception.
Dubai is not Monaco. But it’s not Bangkok either.
The city plays in its own league tax-wise and in terms of costs. That means: Your usual benchmarks only work here to a limited extent.
The Dubai Factor: Why Normal Budget Rules Don’t Apply
You pay no income tax in Dubai. That’s well known. But did you know this affects the price structure throughout the city?
Restaurants, service providers, and landlords calculate differently, knowing their customers have higher net incomes. Also, the city thrives on international business – and that’s reflected in the prices.
In concrete terms: Lunch costs as much as in Munich here. But in Dubai, there’s much more left in your pocket.
The Three Price Worlds of Dubai
Dubai operates on three price levels:
- Local Dubai: Emirati and Indo-Pakistani businesses, affordable and authentic
- Expat Dubai: Western standards at moderate prices
- Luxury Dubai: International luxury brands at premium pricing
As an entrepreneur you’ll mostly oscillate between segment two and three. The trick is to switch between them wisely.
The Seasonality Factor
What few will tell you: Dubai experiences extreme price fluctuations depending on the season.
From November to March (Peak Season), you pay up to 40% more for hotels, restaurants, and some services. From June to September, on the other hand, you can sometimes score spectacular deals.
This substantially affects your annual planning.
Living in Dubai: From Affordable to Luxurious – All Options Open
Housing is your biggest expense in Dubai. But again, there are huge differences depending on location and timing.
Rental Prices 2025: Realistic Figures By District
Here are the current average annual prices (yes, in Dubai, you pay rent annually):
| District | 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: 1 AED ≈ 0.25 EUR), we’re talking about monthly rents ranging from 1,000 to 9,000 euros.
Additional Housing Costs: The Hidden Expenses
On top of rent, there are other charges to consider:
- DEWA (electricity/water): 200-600 AED/month depending on the 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 depending on location
- Security Deposit: 5-10% of annual rent
- Agency Commission: 5% of annual rent (one time)
So expect to add about 30-40% extra to the rent for these ancillary costs.
My Tip for Entrepreneur Housing
As an entrepreneur, I recommend Business Bay or JLT as a compromise between cost and lifestyle. You’ll be close to the business center but won’t pay Marina or DIFC premiums.
Also: Always negotiate. Especially with annual contracts, you can often get 10-15% off.
Food and Gastronomy: From Street Food to Fine Dining
Eating in Dubai means a culinary world trip. But what does this variety really cost?
Daily Meals: Realistic Costs by Style
Here’s my cost overview for different eating habits:
The Frugal Gourmet (Local Food)
- Breakfast: Local café – 15-25 AED
- Lunch: Shawarma or Indian restaurant – 20-35 AED
- Dinner: Local restaurant – 40-70 AED
- Total per day: 75-130 AED (19-33 euros)
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
- Total per day: 240-410 AED (60-103 euros)
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
- Total per day: 680-1,270 AED (170-318 euros)
Self-Catering: Supermarket Prices in Detail
If you want to cook for yourself at times, here are the 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 pcs) | 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 |
Doing all your own cooking costs around 1,200-2,500 AED per month, depending on quality preferences.
Business Meals: Networking and Client Hosting
As an entrepreneur, business dinners come on top. Budget for:
- Business lunch (2 people): 200-400 AED
- Client dinner (4 people): 800-1,500 AED
- Networking event dinner: 300-600 AED per person
Each month, plan for 3,000-6,000 AED 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 planning.
The Car Question: Buy, Lease, or Take Taxis?
Here’s the honest cost breakdown for each option:
Buy a Car (Mid-Range)
- Vehicle purchase: 80,000-150,000 AED
- Insurance: 5,000-12,000 AED/year
- Gasoline: 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
Lease a Car (Business)
- Leasing rate: 1,800-3,500 AED/month
- Insurance: usually included
- Gasoline: 400-800 AED/month
- Maintenance: usually included
- Total monthly cost: 2,200-4,300 AED
Taxis and Ride-Sharing
- Daily rides: 80-150 AED/day
- Careem/Uber Premium: +50% surcharge
- Total monthly cost: 2,400-4,500 AED
Public Transport: The Underestimated Alternative
Dubai has an excellent metro system. Many entrepreneurs overlook this option:
- Monthly Metro pass: 350 AED
- Taxi for last mile: 300-600 AED/month
- Total cost: 650-950 AED/month
However, this only works if your workplace and home are on the metro line.
Business Transport: Representation and Client Rides
For client appointments and representation, budget extra:
- 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: What Living in Dubai Really Costs
Dubai is all about lifestyle. But what does this really cost?
Sports and Fitness: From Gym to Golf
If you care about your health as an entrepreneur, these are your options:
| Activity | Monthly Cost | Annual 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 & Health: Investing in Yourself
Dubai offers top-tier wellness:
- Spa treatment: 300-800 AED per session
- Massage (monthly): 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 drives a big share of your expenses:
Going Out & Networking
- Business drinks: 60-120 AED per night
- Club/Bar Premium: 200-500 AED per night
- Theater/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 Vacation: Dubai as a Hub
A big plus about Dubai: You’re centrally located for travel.
- Weekend trips (Oman/Muscat): 1,500-3,000 AED
- Europe flights: 1,500-4,000 AED
- Asia trips: 2,000-5,000 AED
- Business trips: 3,000-8,000 AED per trip
Expect to take 2-4 trips per year, in addition to business travel.
Business Costs: Office, Networking and Business Lifestyle
As an entrepreneur, you face extra business-specific costs. These are often higher than expected.
Office and Workspace: From Coworking to Corporate Office
| 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
These are the one-time and recurring business costs:
- 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 the lifeblood of Dubai business – and it comes 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
The following running business costs are unavoidable:
- 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 put 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 launching in Dubai and want to be sensible:
| Cost Item | Monthly Cost (AED) | % of Budget |
|---|---|---|
| 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/Buffer | 800 | 6% |
| Total | 13,400 | 100% |
That’s about 3,350 euros a month – a solid, but thrifty lifestyle.
Scenario 2: The Established Entrepreneur (Monthly: 25,000-30,000 AED)
Your business is established and you want to live comfortably:
| Cost Item | Monthly Cost (AED) | % of Budget |
|---|---|---|
| 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 euros a month – a comfortable lifestyle with all the conveniences.
Scenario 3: The Luxury Entrepreneur (Monthly: 50,000+ AED)
You’re successful and want to enjoy Dubai to the fullest:
| Cost Item | Monthly Cost (AED) | % of Budget |
|---|---|---|
| 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 comes out to about 14,000 euros a month – a lifestyle only truly successful entrepreneurs can afford.
Hidden Costs and Surprises
Now let’s get to the costs no one tells you about ahead of time – and they can sting.
The Biggest Cost Traps
Ramadan Effect
During Ramadan (one month a year), many restaurants are closed during the day. Your food costs can rise by 30–50% because you have to rely on more expensive alternatives.
Summer Electricity Bill
From June to September, electricity costs skyrocket. Instead of 300 AED, you’ll soon pay 800-1,200 AED per month for air conditioning.
Visa-Runs and Compliance
Every six months, you’ll need to briefly leave the country on a “visa-run.” Cost: 1,000–2,500 AED per trip.
Unexpected Price Increases
These rising expenses need to be considered:
- Rents: Increase by 5–15% per year in popular neighborhoods
- Restaurants: Price increases of 8–12% per year
- Transport: Fuel prices are highly volatile (±20% per year)
- Services: Around 3-5% inflation annually
Seasonal Fluctuations
Your monthly costs vary with the season:
- Peak Season (Nov-Mar): +20–40% for restaurants and hotels
- Ramadan: +30–50% for available restaurants
- Summer: +50–100% for electricity costs
- Shopping Festival: Tempting deals can break your budget
Emergency Costs and Buffer
Always keep a buffer in mind:
- 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: Always keep 3–6 months’ budget in reserve for emergencies.
My Conclusion: Is Dubai Worth It Financially?
After all these numbers, the key question: Do the costs justify the benefits?
My honest answer: It depends.
Dubai is worth it if…
- You earn at least 15,000–20,000 AED net per month
- Your tax savings exceed the higher living costs
- You value the lifestyle and networking opportunities
- Your business benefits from being based in Dubai
- You are flexible and adaptable
Dubai is NOT worth it if…
- You mainly come for low taxes
- Your budget is just under 12,000 AED per month
- You have rigid habits and dislike adapting
- Your business is not internationally oriented
- You struggle with heat and artificial environments
The Tax vs. Cost of Living Equation
Here’s a concrete example:
Let’s say you make 200,000 euros net in Germany and pay about 60,000 euros in taxes. In Dubai you pay 0 euros in taxes, but about 8,000–12,000 euros extra in living costs per year.
Your net savings: 48,000–52,000 euros per year.
That definitely justifies the move – if you’re okay with the lifestyle.
My Final Recommendation
Test Dubai for 3–6 months first. Rent a furnished apartment, use coworking spaces, and live the real Dubai life.
Only after you’ve experienced the actual costs and the lifestyle should you make your final decision.
Dubai isn’t cheap. But it can take your life and business to the next level – if the circumstances are right.
If you have questions about your specific case, feel free to contact me. I’ll help you with an individual calculation.
Your RMS
Frequently Asked Questions about Dubai Living Costs
How much money do I need at a minimum to live in Dubai?
As an entrepreneur, you should budget at least 12,000–15,000 AED (3,000–3,750 euros) per month for a basic but comfortable lifestyle. Below that, it’s difficult to maintain the quality you will need as a business person.
Are living costs in Dubai higher than in Germany?
Yes, pure living costs are about 20–40% higher than in major German cities. However, you don’t pay income tax, which usually more than compensates for the extra expense if your earnings are high enough.
What hidden costs are there in Dubai?
The biggest hidden costs are: extreme electricity bills in summer (up to 1,200 AED/month), visa runs every 6 months, security deposits (often 5–10% of annual rent), and seasonal price surcharges during peak season.
Is it possible to live cheaply in Dubai?
Yes, but with restrictions. In districts like Al Barsha or Deira you can live much cheaper. However, that usually means longer commute times and less networking opportunities, which can affect your business.
Is it worth having a car in Dubai, or are taxis enough?
For entrepreneurs I recommend a car or lease. Taxis are available, but for daily business it’s not practical and can often cost more. A mid-range lease is about 2,200–3,000 AED per month.
How expensive is eating out in Dubai really?
Big differences: A local Indian restaurant costs 20–35 AED, a business lunch in Marina is 80–150 AED, fine dining is 200–500 AED per person. As an entrepreneur, expect to spend 4,000–8,000 AED monthly on food overall.
What are the best areas for entrepreneurs?
For starters I recommend Business Bay or JLT – good balance of cost, location, and networking options. DIFC is high-end but expensive, Marina is lifestyle-oriented. Avoid Downtown Dubai due to tourist crowds.
What are the annual visa and license costs?
Budget approximately 12,000–20,000 AED annually for visa renewal, Emirates ID, medical tests, and license renewal. Plus, every three years, larger costs for residence visa renewal.
Are living costs in Dubai rising fast?
Yes, Dubai has annual inflation of about 8–12% for rents and restaurants. In popular expat areas, prices rise even faster. Allow for 10–15% cost increases per year in your calculations.
At what income level does Dubai become tax efficient?
As a rule of thumb: At yearly income of around 150,000 euros or above, Dubai becomes worthwhile when you weigh tax savings against higher living costs. Below that, the savings often aren’t enough to justify the move.
