Dubai, Abu Dhabi amongst The Most Expensive Cities Worldwide

Dubai and Abu Dhabi have been ranked the most expensive cities to live in across the Middle East, according to Mercer’s 2016 Cost of Living Survey. The global rankings see Dubai as the 21st most expensive city in the world, a rise of two places in comparison to last year, with Abu Dhabi, 25th in world, changed from 33rd last year. The two UAE cities have experienced a rise in their world rankings in this respect, following the wider Middle Eastern trend of GCC countries becoming more expensive.

Talent Mobility Consultant at Mercer Middle East, Rob Thissen, said: “The main reason Dubai and Abu Dhabi, and in fact almost all cities in the Middle East increased in rank, is that their currencies are pegged to the US Dollar, with Riyadh for instance currently rated more expensive than Rome.”

The Middle East has multiple locations situated in the world’s top hundred, with a strong showing primarily from the GCC countries. Several cities experienced a jump in the rankings, as they are pushed up by other locations’ decline, as well as the strong increase for expatriate rental accommodation costs, particularly in Abu Dhabi and Jeddah. One Levant city, Beirut, is positioned as the third most expensive city in the Middle East and 50th globally, down from 44th last year; which is tied with nearby Amman, Jordan, also 50th, representing a rise of four places from last year. Returning to the GCC, Riyadh is the 57th most expensive city in the world, a significant difference from its 71st place last year; Manama, Bahrain sees its ranking at 71st, differing from 91st last year; Doha is 76th, up from 99th last year; Muscat comes in at 94th, jumping from 117th last year; Kuwait City is 103rd, also climbing from 117th position in 2015; lastly Jeddah is 121st, a change from 151st last year.

Rob Added: “These rankings uniquely combine day-to-day expenditure on goods and services such as food, clothing and transportation, with rental prices. While prices of most goods and services are considered to be cheaper in Saudi Arabia compared with Europe, it is the expatriate rental market that pushes cities like Riyadh and Jeddah up the ranking.” He also added: “What this means is that once again, cities in our region have become more expensive to send people to, with expatriates expecting increased cost of living and housing allowances. To the contrary, when sending staff out of the Middle East, multinationals have to be wary that cost of living allowances are likely to go down, and have to clearly explain and communicate this to their staff to avoid lengthy discussions.”