The Real Cost of Living in Abu Dhabi - How Much Do You Really Need ?

Summary

This video offers a comprehensive guide for those considering relocating to Abu Dhabi, detailing the financial aspects of living in the city. It covers the cost of accommodation, utilities, transportation, groceries, education, and leisure activities, providing average price ranges and highlighting that expenses vary based on lifestyle and location. The video also touches on the importance of health insurance, the necessity of planning finances in a tax-free environment, and the impact of having a family on overall costs.

Takeaways

• 💰 The cost of living in Abu Dhabi can vary greatly depending on lifestyle, location, and household size.
• 🏠 Accommodation is likely to be the biggest expense, with high rents and the need for a significant upfront payment.
• 📈 Abu Dhabi has the highest GDP per capita in the UAE, making it an expensive city, but it is also a tax-free country aside from a 5% VAT on goods and services.
• 🏡 Rent prices for apartments can range from 60K to 220K AED per year, with significant variations based on location and amenities.
• 🛋 Furnished properties are uncommon, and furnishing costs will depend on personal taste and budget, with options for secondhand or new purchases.
• 💡 Utilities like water and electricity are metered, with an initial deposit required and variable costs based on usage and property characteristics.
• 📱 Communication costs are relatively high, with limited service providers and the need for international call plans due to app restrictions.
• 🚗 Public transport is limited, making car ownership or taxis more practical, with associated costs for car rental, purchase, or toll fees.
• 🍽️ Food and dining options are diverse, with higher prices for imported brands and premium dining experiences, including alcohol.
• 🏫 Education and childcare are costly, with significant fees for international schools and nannies, increasing with the child's age and educational level.
• 🏥 Health insurance is mandatory and can be a significant expense, especially for families, with costs varying based on coverage and provider.

Q & A

What are some key factors that determine the cost of living in Abu Dhabi?

The cost of living in Abu Dhabi depends on your lifestyle, the area you choose to live in, the number of people in your household, and other personal preferences.

How does Abu Dhabi's tax-free status affect the cost of living?

Although Abu Dhabi is a tax-free country, there is a 5% VAT on goods and services. This means no income tax or National Insurance contributions, but individuals must manage their finances without a pension or insurance scheme.

What are the typical costs for accommodation in Abu Dhabi?

Accommodation costs vary greatly depending on the area and type of property. A one-bedroom apartment can range from 60,000 to 100,000 AED per year, while a three-bedroom apartment can cost between 110,000 and 220,000 AED per year.

What are the common types of properties available for rent in Abu Dhabi?

In Abu Dhabi, you can find a variety of properties from shared flats to villas, with the majority being unfurnished. Fully furnished properties are less common.

How does the location affect the rent prices in Abu Dhabi?

Rental prices vary by location, with areas like Al Reem and Yas Island being more expensive compared to suburban areas like Arif, where you can find more affordable rents.

What are the additional costs associated with renting a property in Abu Dhabi?

When renting, you may need to pay a 5% deposit of the annual rental value and possibly a security deposit. Utilities, such as water and electricity, are additional costs and are typically not included in the rent.

How much should one expect to pay for utilities like water and electricity in Abu Dhabi?

The cost of utilities depends on usage and the size of the apartment. For electricity, it's about 28 fils per kilowatt-hour, and for water, it's 8 to 10 fils per cubic meter.

What are the transportation options and their approximate costs in Abu Dhabi?

Transportation options include buses, taxis, and personal cars. Bus tickets cost 2 AED, taxi fares start at 30 AED for 10 km, and car rentals start around 2,000 AED per month. Petrol is relatively cheap, at about 3.30 AED per liter.

How does the cost of groceries compare to Europe in Abu Dhabi?

Grocery prices in Abu Dhabi are generally comparable to Europe, except for certain imported brands which can be significantly more expensive.

What are the costs associated with education for children in Abu Dhabi?

Education costs can be high, with kindergarten fees in a French school starting at 29,000 AED per year, and British or American schools often charging double that amount. As children progress, tuition fees increase.

What are some of the common leisure activities and their costs in Abu Dhabi?

Leisure activities include shopping at malls, dining out, visiting amusement parks, and going to the beach. Costs can vary, but a movie ticket is around 45 to 60 AED, a restaurant meal can be similar to European prices, and amusement park tickets start from 345 AED per adult.

Outlines

00:00

🏠 Living Costs in Abu Dhabi

This paragraph discusses the various costs associated with living in Abu Dhabi, emphasizing that these costs depend on lifestyle, location, household size, and other factors. Abu Dhabi is highlighted as having the highest GDP per capita in the UAE due to oil and gas reserves and government investments in various sectors. The video aims to help viewers build a budget for moving to Abu Dhabi. Accommodation is identified as the main expense, with high rents and the need for a security deposit. The paragraph also covers different types of properties available, from shared flats to villas, and the varying rent prices depending on the area and amenities. The inclusion of amenities like pools and gyms in the rent is mentioned, along with the availability of furnished properties. The video also touches on utilities, such as water and electricity, and their costs.

05:01

🚗 Transportation and Additional Living Expenses

The second paragraph delves into transportation options and costs in Abu Dhabi, including public buses, taxis, and personal car ownership. It mentions the lack of a metro system and the reliance on buses or personal vehicles. The paragraph also discusses the costs associated with owning a car, such as rental fees, purchase prices, and petrol costs. Additionally, it covers toll fees for using motorways during peak hours. The paragraph further addresses the expenses of home broadband and phone plans, with details on the available service providers and their pricing. It also mentions the cost of groceries, comparing them to European prices and noting the absence of non-halal products and alcohol in regular supermarkets. The paragraph concludes with information on the costs of education for children, including nursery and school fees, and the option of hiring a nanny, with details on the associated costs.

10:02

💰 Recreation, Health, and Miscellaneous Expenses

The final paragraph focuses on recreational activities, health insurance, and other miscellaneous expenses in Abu Dhabi. It provides insights into the cost of shopping at different types of malls, movie tickets, dining out, and the popularity of brunches in luxury hotels. The paragraph also discusses the cost of visiting amusement parks, museums, and beaches, as well as the travel opportunities from the UAE to other destinations. Health insurance is highlighted as a mandatory expense, with details on the costs for individuals and families, especially important for those who are self-employed. The video concludes by encouraging viewers to share their thoughts and ask for more details on specific topics, and it invites them to like, share, and subscribe for more content.

Keywords

💡Abu Dhabi

Abu Dhabi is the capital city of the United Arab Emirates (UAE) and serves as the focus of the video. It is characterized by high living costs, a tax-free environment, and a diverse economy. The video aims to provide an overview of the expenses one might encounter when living or planning to move to Abu Dhabi, including housing, transportation, and lifestyle costs.

💡GDP per capita

GDP per capita stands for Gross Domestic Product per capita and is a measure of a country's economic output per person. In the context of the video, Abu Dhabi has the highest GDP per capita in the UAE, indicating a high average income level. This is attributed to its large oil and gas reserves and government investments in various sectors, making it an expensive city to live in.

💡Accommodation

Accommodation is a primary expense for anyone living in Abu Dhabi. The video discusses the high rents, the common practice of paying an annual rent upfront, and the negotiation potential for better rental prices. It also mentions the types of properties available, ranging from shared flats to villas, and the varying costs depending on the area and amenities.

💡Tax-free country

The term 'tax-free country' refers to a jurisdiction where personal income tax is not levied. The video highlights that Abu Dhabi is a tax-free country, which means residents do not pay income tax on their earnings. However, it also points out that this absence of tax contributions means residents must manage their finances carefully without the safety net of pension or National Insurance schemes.

💡Utilities

Utilities in the video refer to essential services like water, electricity, and air conditioning. The script provides details on the expected costs for these services, including the deposit required to open an account with the Abu Dhabi Department of Municipalities and Transport (ADDC) and the rates for electricity and water consumption.

💡Public transport

Public transport in the video is discussed in the context of its affordability and availability in Abu Dhabi. It contrasts with the more developed transport systems in other cities like Dubai. The video mentions the reliance on buses, the lack of a metro system, and the challenges of using public transport in suburban areas.

💡Private car

Owning a private car is presented as an alternative to public transport, with the video detailing the costs of car rentals, purchasing options, and the additional expenses such as toll fees and petrol. It also touches on the importance of considering car ownership when planning a budget for living in Abu Dhabi.

💡Schooling

Schooling is a significant expense for families living in Abu Dhabi, as highlighted in the video. It discusses the costs of nursery and school fees, which can be quite high, especially in international schools. The video also mentions the additional costs of hiring nannies or maids to support families with young children.

💡Health insurance

Health insurance is mandatory in the UAE, and the video explains the costs associated with it. It differentiates between the coverage provided by employers for their employees and the costs that business owners or self-employed individuals must bear. The video provides a range of estimated costs for health insurance, emphasizing the importance of this expense in budget planning.

💡Leisure activities

Leisure activities are discussed in the context of additional costs for residents of Abu Dhabi. The video provides examples of expenses related to shopping, dining out, visiting amusement parks, and other entertainment options. It emphasizes the variety of activities available and the associated costs that contribute to the overall lifestyle expenses in the city.

💡Halal

Halal is an Arabic term designating any object or action that is permissible according to Islamic law. In the context of the video, it refers to the type of food products available in Abu Dhabi's supermarkets, which are halal-compliant. The video notes the absence of non-halal products and alcohol in regular stores, which are only available in specific, hidden stores.

Highlights

Abu Dhabi has the highest GDP per capita in the UAE, largely due to oil and gas reserves and government investments in various sectors.

Abu Dhabi is a tax-free country, but there is a 5% VAT on goods and services, and no pension or National Insurance schemes.

Accommodation is likely to be the main expense for expats, with high rents and the requirement for a one-year payment upfront or through installments.

A 5% deposit of the annual rental value is required upon signing a lease in Abu Dhabi.

Non-furnished properties are common, with full-furnished properties being less common and more expensive.

Rent prices for a one-bedroom apartment in expat areas range from 60 to 100K AED per year, while a three-bedroom can cost from 110k to 220k AED.

Suburban areas offer cheaper rents, with one-bedroom apartments starting from 45k to 50K AED per year.

Utilities, including water and electricity, are charged based on consumption, with a deposit required to open an account.

AC usage is typically moderate due to good building insulation, with estimated costs for summer and winter months provided.

Municipality fees, which are 5% of the rent, are paid monthly with the utility bill.

Home broadband and phone plans are relatively expensive, with limited providers and specific plans detailed.

Public transport is cheap but not well-developed, with buses being the primary option, though they are less frequent in suburban areas.

Taxis and ride-sharing apps like Uber are affordable alternatives to public transport, with car rentals and purchases also common.

Petrol is relatively cheap, and toll fees apply only during peak hours on motorways.

Groceries are available at a range of stores, with prices comparable to Europe, though certain imported brands can be significantly more expensive.

Education is costly, with kindergarten fees in a French school starting at 29,000 AED per year, and British or American schools often double that.

Nannies are a common childcare option, with costs varying based on whether they live in or out and their experience.

Leisure activities, such as shopping, dining out, and visiting amusement parks, are available but can be pricey.

Health insurance is mandatory and must be subscribed to at personal cost if not covered by an employer.

Transcripts

so how much do you need to leave in Abu

Dhabi the more you have the higher the

rent will be it is a tax-free

country hi guys in this video I'm going

to try to provide you with all the

answers to the key questions you may

have in mind if you're contemplating

moving to Abu Dhabi this should

hopefully help you to build your budget

and to know how much you really need to

plan before making the big

move

[Music]

so how much do you need to live in

abudabi this question is tricky as it's

all based on different criterias and the

answer will depend on your lifestyle the

area you decide to settle in how many of

you in the household and many other

factors to take into consideration but

don't worry I'm going to give you some

figures so you can get an idea based on

your personal situation we will go

through each key expenditure you can

think about if you decide to relocate to

Abu Dhabi be aware that Abu Dhabi has

the highest GDP per capita in all the

UAE th ahead of Dubai this is mainly due

to its large oil and gas reserves but

not only that the government has

massively invested in divers areas such

as the financial sector

entrepreneurship Hub tourism and

infrastructures it is safe to say that

Abu Dhabi is in general a quite

expensive city to live in on the good

side it is a tax-free country putting

aside the 5% VAT on the goods and

services you consume here but this also

means that you don't contribute to any

pension no National Insurance scheme so

you have to plan and manage your

finances

accordingly most probably your main

expense will be your accommodation

unless you're part of the lucky ones

where your employer covers it in Abu

Dhabi the rents are quite high and

landlords will ask for onee rent payment

upon signing your lease however you will

often be able to give up to four checks

that covers the overall rental the year

based on an agreed installment plan it's

also part of the negotiation if you're

able to pay the full year UPF front you

can manage to negotiate a better rental

price upon signing your lease you will

also need to pay a 5% deposit of the

annual rental value based on your needs

and what you can afford you have access

to any type of property from a shared

flab to a villa with po majority of the

properties are non-furnished full

furnished property are quite uncommon

for the same property and size rent

price varies depending on the area the

amenities Etc to give you an idea if you

are looking for an apartment within the

expa places and communities a

one-bedroom apartment can go from 60 to

100K Dam a year and a three-bedroom

apartment will go from 110k to 220k dams

a year bear in mind that all the

residents amenities are included in the

rent depending on what the residents can

offer but usually most of them are at

least a pool and a gym some can also

offer tennis courts squash courts

basketball courts and even some

sometimes access to a private beach but

obviously the more you have the higher

the rent will be these are average

prices for areas such as arim Yas island

or Sadat you can find cheaper rents in

Suburban areas such as Arif where you'll

find modern spacious one-bedroom

starting from 45k to 50K Dam a year in

Cornish area you can find three bedroom

apartments starting from 90k Dam a year

but those will be in older buildings

that sometimes don't offer a pool or a

gym for your research the most reliable

websites are property finder beut as for

Furnishing your apartments it will

really depend on your taste and budget

you can find a lot of secondhand on

social media like Facebook on the exper

groups or on Dubizzle but if you wish to

buy new you'll have many different

options one of the cheapest will

probably be Ikea and other similar price

range and style local

store your water and electricity bill

will obviously be in line with your

conception and the size of your

apartment in Abu Dhabi The Authority

that deals with it is addc you will have

to leave a deposit of 1,000 Dam to open

your account and then for expats the

price of 1 kilowatt hour is about 28 fs

and 1 cubic M of water is 8 to 10 dram

as for the AC unlike what people may

think we don't leave 24/7 with the AC on

buildings installation are quite good

windows are tinted so you generally

depend on the AC only during the summer

month again it's quite hard to give you

an estimation of your bill as it's all

related to your use the size of your

housing the exposure and how well it's

insulated also sometimes the AC may be

included in your rent but if not you can

estimate c cap 30 drams per month during

the winter month where the AC is not

running and around 400 Dam a month for

the summer month for a moderate use

other bills to take into consideration

are the municipality fees this is a tax

from the Department of municipality and

transport which you generally pay

monthly with your addc bill and it is

worth 5% of your rent you also have to

think about your home broadband and your

phone plan it is quite expensive here

and you don't have many providers etis

Salat D and virgin are the only three

providers you can go to the only phone

plan that offers unlimited calls to your

country of origin is currently with

ettis Salat and it will cost you 325 Dam

a month but for regular phone plan with

okay data You Can Count approximately

120 Dam a month bear in mind that most

of the apps like WhatsApp or Facebook

are restricted for cuse that's why

having the international calls within

your plan can sometimes be useful for

the home broadband plans it will start

around 200 Dam a

month public transport are quite cheap

in ababi but they're not very developed

especially if you compare to Dubai there

is no Metro yet so you will have to rely

on the buses if you leave and work

downtown it is fairly easy and cheap to

use the bus a ticket will cost you two

but if you live far from the center like

in Yas or Sadat Island it will be more

tricky to use the bus Network there are

not many bus lines and they're way less

frequent sometimes they will only run

every 2 hours so in that case it may be

more convenient to use taxi or your own

car taxis are quite cheap they're really

easy to find in the city or you can use

the Abu Dhabi taxi app to book it fees

are approximately 30 dam for 10K you can

also use Yuber or carim which is a local

competitor of uber but they are

generally more expensive the other

alternative is to have your own car you

can either buy or rent rentals start

around 2,000 Dam a month for a small car

and if you decide to buy your own car

you'll find all sorts of prices

depending if you want to buy brand new

or secondhand depending on the state of

the car the mileage Etc you can find any

type of car for all budgets keep in mind

that if you go through a car loan the

bank will usually add ask you for a 10

to 20% deposit and one of the benefit

here is obviously that petrol is quite

cheap at the time of this video a liter

is 3.30 Dam one more expense to know

about is the tollgates if you use your

personal car you will have to pay the

toll fee worth five Dam each time you go

through the gates at peak hours only and

these are generally located on the

motorways so it's still a small budget

to take into consideration if you do run

trips every day

for your groceries you'll have many

options from the affordable stores like

Lulu Coop or Kaur to the more premium

ones like weight Rose or spinies in

terms of prices it is quite comparable

to prices in Europe to the exception of

certain imported Brands where prices can

be like double triple or even more the

main difference in supermarkets here

compared to Europe is that you won't

find any non-halal products and no alol

some supermarkets do have a hidden room

where you can find some non-al Out

product but for the alcohol you will

have to go to complete different store

that are usually well hidden and be

aware that prices might be more

expensive than what you're used to pay

especially for the wine you also find

smaller local supermarkets in each

district as the little corner shops

called bakala but prices there are

higher than in supermarkets

if you have children you will need to

allocate a pot of money in your budget

for them nurseries in schools are quite

expensive in Abu Dhabi for example the

kindergarten fee in a good French school

is 29,000 Dam a year and in a good

British or American school is often

double that as your children grow the

tuition fees grow as well for example

the top British school fees in Abu Dhabi

are for years year 2 to 4 78,000 Dam a

year for year 5 to9 83,000 Dam a year

and for year 10 to 13 100,000 Dam a year

you also need to keep in mind that

school days finish early in the

afternoon so for the younger children

you will need to think about having a

nanny the most common option here is to

hire a full-time Nanny that you can

either sponsor under your Visa or hire

through an agency but it will cost more

the Nani will generally help you with

household when your children are in

school but it all depends on your

agreement with her nanes can be leaveing

or leave out if you opt for the leaveing

option it means that she lives at your

place room and full board so her salary

will be lower than if she's live out

where you have to cover for all of our

expenses including the rent the salary

will be based on her experience and also

her nationality for leing Nani the very

minimum salary will start from 1,500 Dam

a month and for the leave out nany

minimum 2,500 Dam a month and if you

don't have children you can still hire

maid for the same range of

prices laser activities are another

budget to consider I'll give you some

figures so you can get an idea but the

list is obviously non-exhausted if you

want to go shopping you will find many

malls around the city they are huge and

have the majority of all the well-known

Brands but prices are generally higher

for example European Brands such as Zara

or H&M are generally 30% higher than

prices in France or the UK for example

fortunately it's not the case for all of

the brands in Abu Dhabi a movie ticket

will cost you between 45 to 60 Dam

depending on what seat you choose for

restaurants you have many options in Abu

Dhabi restaurant chains and well-known

fast foods have prices similar to Europe

if you go to the expert areas

restaurants can become PR pricey and

even more if you're ordering alcohol a

bottle of wine usually starts at 200 dam

for the cheapest one brunches here are

really famous on weekends most of the

time they take place in luxury hotels

and they are huge all you can eat

buffets with all types of food including

the finest food prices for the

non-alcoholic pack usually goes around

1885 to 280 dram and the unlimited house

drain Park goes from 280 to 400 100 D

Abu Dhabi is well known for its unique

amusement park some of them are the

largest in the world they're all located

on Yas Island tickets may be pricey a

day pass start from 345 Dam per adult

and 265 for kids tickets to the lou

Museum will cost you 63 dam for an adult

and 31.5 dam for a kid most of the beach

in Abu Dhabi even public are not free

for the Cornish one you'll have to spend

$10 Dam to enter for the full day and if

you choose to go to the beautiful

beaches in Sadat it will cost you up to

80 Dam per day I'm not going to talk

about holiday budget because it's

specific to everyone but just be aware

that the UAE is a great Hub to fly to

lovely destinations that you wouldn't do

from Europe or America cuz it's too far

also I would recommend to allow at least

one return ticket to your home country

for your whole household per year

if you are employed in the UAE your

employer will cover the cost of health

insurance for you some employer may also

cover the cost for your family visa and

health insurance but be aware that if

you have your own business you will have

to subscribe to a health insurance of

your choice at your own cost as it is

mandatory to have health care here

health insurance for yourself as a

business owner prices will start from

2,500 Dam a year and if you are bringing

your family along then you will have to

spend a minimum of 3,000 dram per year

per child and minimum 2,000 Dam per year

for your husband or about 8,000 dram for

your wife it is more expensive for women

as it takes into consideration possible

pregnancy and birth costs that's it guys

I hope I gave you a good overview of

potential costs fees and expenses you

can expect and I hope this this video

will help you to put your budget

together for your move to Abu Dhabi any

topic you wish to go into more details

please leave a comment below I will be

happy to respond or dedicate a full

video on any key subject please share

this video smash the like button and

also subscribe to the channel this will

help me a lot to produce more content

like this thank you for

[Music]

watching