Salaries in the UAE vary sharply: about Dh90,000 for a finance chief, Dh50,000 for a GP and Dh20,000 for an office worker — often less for a teacher. At the lower end, a restaurant manager might earn around Dh9,000, a waiter Dh4,000 and, perhaps most strikingly, a labourer about Dh1,500.
While the UAE is a land of opportunity for many, pay ultimately shapes daily life and differs widely depending on qualifications, experience, nationality, role, employer size and industry. The income range is as diverse as the workforce — but how much does one actually need to get by in the UAE
We at The National set out to show how residents from all walks of life are spending, budgeting and saving.
The biggest variable - rent
From bedspaces and partitions in rooms, and apartments, town houses and villas, UAE residents can find accommodation for monthly rents less than Dh1,000 to more than Dh20,000.
Shan, 28, an Indian citizen who works in an industrial factory in Dubai, told The National that he pays Dh700 to share a room with four others in Al Barsha. His total income, including overtime after working 12 hours daily for six days, comes to about Dh5,000.
Another Dubai resident, a 35-year-old Ugandan property consultant who did not want his name revealed, said his first salary was Dh3,000 and he used to spend Dh700 a month on a partitioned room.
However, renting “bedspaces” or partitioned rooms is illegal in the UAE. Sharing apartments is allowed with the landlord’s approval, proper Ejari or other tenancy documentation listing all occupants while adhering to strict space limits per person.
Shan spends around Dh500 a month on groceries, and Dh100-150 for weekend meals and activities. He spends just under Dh270 a month on transportation.
The baseline - expenses for a single person
Numbeo, which features crowdsourced data from hundreds of thousands of people for cost of living and quality of life data, broadly shows that a single person needs just under Dh4,200 to live in Dubai excluding rent. To calculate rent, we took a look at active listings for studios near Dubai Metro stations. These start at about Dh35,000 a year in affordable areas, going as high as Dh70,000 and more in premium locations, according to property listings. The National also observed online and official rental contracts information from the Dubai Land Department.
This would mean at least Dh4,000 in average monthly rent for an affordable, reasonably well-located apartment in Dubai or Abu Dhabi. For locations that are not as well located one could get an apartment for as low as Dh2,500 a month, but this would mean higher transportation costs.
Adding the Numbeo data and the above rental average for a studio, a single person would need at least Dh8,000 to live in Dubai or Abu Dhabi. Apartments in the other emirates are cheaper, so this amount would be slightly lower for residents there.
Dh8,000 in this calculation can only cover expenses and doesn't include savings or discretionary expenses. Financial coaches recommend spending 30 per cent or less for housing, which would mean a salary of at least Dh13,000 with enough left over after costs of living.
School fees and higher rents for families
Numbeo data reflects that a family of four living in Dubai will need, on average, Dh14,450 a month (not including rent). In Abu Dhabi, this figure is around Dh12,200.
Rents are more or less similar in the two emirates, and in Dubai the rent could be anywhere from Dh6,250 for a one-bedroom apartment to Dh10,000 for a two-bedroom apartment. These are averages based on new rental contracts signed in the last six months.
This would mean that the combined family income for four members would have to be at least Dh20,000 in Dubai renting a one-bedroom apartment, or around Dh25,000 living in a two-bedroom apartment. This does not include savings or investments.
An Ajman resident revealed to The National that his family’s combined income of Dh18,000 comes with no perks and would fall short of their needs if he relocated to Dubai. The 29-year-old Egyptian, who did not want to reveal his name, said his salary was Dh10,000 as an accountant at a satellite services company in Jumeirah Lakes Towers.
His wife works in Ajman on a monthly salary of Dh8,000 and the couple pay a little more than Dh2,000 in rent a month for a two-bedroom apartment – rates that are not available in Dubai or Abu Dhabi.
With the long daily drive, he spends about Dh1,200 on fuel expenses and Dh1,500 in monthly payments towards his car loan. With school fees for his older son and expenses for a newborn, he said he does not save anything significant. He added that he has no schooling allowance, and his wife does not get an allowance for annual travel.
Some companies offer assistance for schooling and/or a portion of housing, but this is not the norm, industry experts say.
Allowances and total pay packages
Shyam Visavadia, founder of recruitment consultancy WorkPanda, said candidates must research living costs, especially rent and schooling before accepting any offer and “focus on the total package and not just salary”.
“Candidates relocating from Europe or Asia often still expect itemised benefits such as housing, transport, and schooling, even though most UAE packages are now all-inclusive,” he adds.
Majed Alsaadi, managing director of Yalla Consulting, says: “Generally, across the board from junior to senior levels, schooling is an [additional] perk, as it is no longer a common allowance offered.”
He said housing is rarely offered as a separate itemised compensation and is included in the total package. Additionally, for candidates moving jobs within the Emirates hoping for improved salaries the expectations may not match market reality.
Funding long-term dreams
An Indian couple in their late 30s said they earn a combined income of Dh120,000 a month in Dubai, and invest nearly 40 per cent of that towards their Fire (financial independence, retire early) goal of $2 million, which include global stock ETFs (exchange-traded funds), home equity and cash reserves.
“This gives us enough cushion to settle in a city like Cochin and fund our child’s education. However, we intend to continue working … and our vision is $5 million, which would give us financial flexibility to retire anywhere (Dubai or Europe).”
While they were not comfortable sharing names, the husband, works as a regional sales director in the fast-moving consumer goods sector, and his wife works as group legal director for a similar firm. The couple own the townhouse where they live with their six-year-old daughter and pay Dh18,000 a month on their mortgage.
Shan, with his salary of Dh5,000, is currently focused on two goals – a family home in India and his wedding.
“I have paid back all my smaller debts, including an advance from my employer – so my plans currently revolve around the home and upcoming life expenses, including my wedding,” he says.
Saving for retirement
Lebanese national Elie Irani, 50, sets aside 45-50 per cent of his salary for monthly investments in a portfolio of ETFs for his retirement. The cyber security professional started his career in Dubai 19 years ago on a salary of Dh15,000. The goal is retiring with a decent amount while working in the UAE, Mr Irani said.
In the absence of pension schemes for residents, fractional investments in low-risk global ETFs are being touted as a way to build up a substantial amount over 20 to 30 years.
While he did not reveal his current income, Mr Irani said he budgets monthly for travel and leisure for the year, calling it the “fun fund” that he and his wife dip into for guilt-free expenses. He also keeps an emergency fund to cover six months of living expenses.
Mr Irani says he is not interested in buying a property as he loves the “total freedom” renting affords.
All investments, including property and stocks, come with risk, and learning the pros and cons of each can help residents better plan their finances.
