Dubai is the seventh most expensive city in the world, a study of 73 global cities based on the cost of 154 items including rent, food and services, Swiss-Bank UBS said in a report.
New York, Oslo, Geneva, Tokyo, Zurich and Copenhagen beat Dubai, the study showed. The only other Gulf country cities on the list were Doha and Manama.
While Dubai was among the top 10 on the most-expensive list, it ranked No. 36 on wage levels. And workers in Doha, Dubai and Manama racked up longer hours, averaging 2,210 per year, 308 more than the global average.
The study found that the cost to buy a basket of 27 services in Dubai - including haircuts, phone charges, dry cleaning, movie tickets, restaurant meals - was $890, higher than New York and London and sharply more than the global average of $503.
In Doha and Manama the cost of the same basket of goods was $620 and $450 respectively.
While Zurich topped the wages list at more than $22 an hour, Dubai paid an average of just $10, Doha around $5 and Manama $6.
And Dubai was one of the priciest cities to rent a flat. A 3-bed unfurnished apartment in the medium price range costs $3,710 in the emirate.
A similar apartment in Doha costs $2,290 and $1,900 in Manama. The only places more expensive than Dubai were Hong Kong and New York respectively.
Haha! Every few weeks we get one person coming on here and posting something about Dubai thinking we the people of gupshup were unaware of how expensive Dubai was.
This topic has been exhausted to death and is over rated.
I love it the way it is.
Oh btw Umer bhai I saw you, bhahbi and kids in MOE Carrefour looking for a phone recently. I was standing right next to you with dad.
This topic has been exhausted to death and is over rated.
I don't think the topic is over rated. Just because we happen to be lucky enough to make a good living in Dubai (Alhamdulillah) doesn't negate the fact that most of Dubai's population is having a hard time making ends meet.
I am a bit sceptical about these findings. Comparing prices or rents is not the true measure, there are many other factors which also contribute to cost of living in any city. Also if the average incomewise Dubai is on number 36 then how on earth it became the 7th most expensive city! as average cost of living is always below or close to average annual annual income, otherwise no one would afford to live in such city.
Lemme give you an example, city of London (also known as Central London) is the most expensive city in UK, and average annual incomes of the people working/living/commuting there are higher than rest of the country as they need it to meet average cost of living in City of London.
Dubai is the seventh most expensive city in the world, a study of 73 global cities based on the cost of 154 items including rent, food and services,Swiss-Bank UBS said in a report.
New York, Oslo, Geneva, Tokyo, Zurich and Copenhagen beat Dubai, the study showed. The only other Gulf country cities on the list were Doha and Manama.
While Dubai was among the top 10 on the most-expensive list, it ranked No. 36 on wage levels. And workers in Doha, Dubai and Manama racked up longer hours, averaging 2,210 per year, 308 more than the global average.
The study found that the cost to buy **
**a basket of 27 services in Dubai -
** including haircuts, phone charges, dry cleaning, movie tickets, restaurant meals - was $890, higher than New York and London and sharply more than the global average of $503. **
In Doha and Manama the cost of the same basket of goods was $620 and $450 respectively.
While Zurich topped the wages list at more than $22 an hour, Dubai paid an average of just $10, Doha around $5 and Manama $6.
And Dubai was one of the priciest cities to rent a flat. A 3-bed unfurnished apartment in the medium price range costs $3,710 in the emirate.
A similar apartment in Doha costs $2,290 and $1,900 in Manama. The only places more expensive than Dubai were Hong Kong and New York respectively.
(Muktoob Business News)
You are right Xeno , comparing prices merely on Rent basis is not true measure.
But they have selected 27 Services as the highlighted Parts of the report says.
otherwise no one would afford to live in such city.
You are right, if you apply European/American demographics.
But you have to realize that the vast majority of Dubai's population is not local. They came from countries with much lower income levels. (India, Pakistan, Phillipines, etc.) So even if the average income minus expenses equation results in a much lower amount than in the West, people will stay on. Because they can't go to the west and they think that they are still better off in Dubai than they would be in the countries they came from.
Every 2 years or so, Dubai government employees (locals) get a 20% raise in their salary. My information is from Khaleej Times. Wow. 20% raise is a lot of money.
Xeno.. in other places u know u're paying tax and hence added expenses. In Dubai we don't have tax.. but the cost of goods is still very high.
Getting u're fuel-tank full in Saudi costs 25-30 riyals, in Dubai it's 90-110 dirhams.
Pigeoon-hole apartments and the rents are sky-high!
Basic groceries and medical..
But again despite all these high prices these services are affordable within Dubai's average annual income, ad that is the point I am trying to make. By the way, in UK it costs around 300 dirhams PLUS tax to fill fuel-tank of an average 1.2 ltr family car (as compared to petrol thirsty luxuary cars in Dubai). I stress again that the ratio between average cost of living & annual earnings is the true measure.
What I don't understand is that if Dubai's average annual income ranks 36 on global index (according to this report) then there is no way that an average Joe would afford to live in worlds's 7th most expensive city becuase numbers don't add up.
PS: I think someone who lived both in Dubai and UK should shed more light into this matter. Becuase from my personal experience I find dubai very inexpensive in comparision to London.
You are right, if you apply European/American demographics.
But you have to realize that the vast majority of Dubai's population is not local. They came from countries with much lower income levels. (India, Pakistan, Phillipines, etc.) So even if the average income minus expenses equation results in a much lower amount than in the West, people will stay on. Because they can't go to the west and they think that they are still better off in Dubai than they would be in the countries they came from.
Which is exactly why I am questioning these findings. I find it hard to believe that despite living in such expensive city, they save up enough to sustain a decent middle and upper middle class standard in their home countries. Which is not possible UNLESS the average annual income in top 10, which we all know is not true for Dubai.
