Dubai is now the 20th most expensive city in the world for expats
According to Mercer’s (a consulting company based in New York) latest survey, the cost of living for expats based in Dubai and Abu Dhabi, has in fact gone up.
So much so, that Dubai now holds the title of being the 20th costliest city in the world – that’s one spot higher than its ranking last year. Up two spots, Abu Dhabi is now the world’s 23rd most expensive city to live in.
Joining the UAE in the top 100 was three of its neighboring countries; Saudi Arabia (Riyadh – 52), Oman (Muscat – 91) and Bahrain (Manama – 55).
Topping the list at first place is Luanda, Angola, followed by Hong Kong with Tokyo, Japan rounding up the top three.
That fact that the rate of living in the UAE has increased has caused concern for some as the price of living in the UAE is already set to increase with the introduction of Value Added Tax (VAT).
The news of the 5 percent VAT was confirmed earlier this year by the Under Secretary of the UAE Ministry of Finance, Younis Al Khouri, who stated that from January 1, 2018, all GCC countries will be enforcing a 5 percent VAT across the broad.
In a bid to soften the blow, the UAE announced that it will most likely be enforcing a waiver on around 100 goods and services, such as food and healthcare.
While businesses with annual revenues of over AED375,000 will be obliged to register for the GCC VAT system, there will be no income tax on salaries.
It is also important to note that the UAE has, in fact, been experiencing a steady increase of vacancies in the job market.
According to the latest Middle East Jobs Index from recruitment agency Robert Walters, there has been a three percent rise in the number of job postings from the end of 2016 to the end of March this year.
The sectors areas that have seen the strongest growth in the last quarter include procurement and supply chain jobs as well as sales and marketing.