UAE Not Expensive for Living Anymore

UAE Not Expensive for Living Anymore

 

The cost of living in the UAE has declined despite the introduction of value-added tax (VAT)- earlier this year and now the country became more affordable for expats. According to market analysts, consistent fall in rents, lower oil prices and a strong local currency are found to be the reasons for the UAE’s fell out of the 25 most expensive cities in the world. It was revealed in the Mercer’s annual cost of living survey. In the previous year ranking, the capital city of Dubai was ranked 22nd among the 209 most expensive cities in the world but it is reduced to 40 this year. Market analysts believe that the UAE government’s recent motion of reducing and freezing certain fees across different sectors of the economy will have much positive and significant impact among the UAE residents than the impact of VAT which announced early this year in the country.The decline in property rents can be attributed to the cause of the drop in the cost of living in UAE quoted Anita Yadav, head of fixed income research at Emirates NBD Research. She added that that the decline in the cost of food imports contributed to the strengthening of Dirham which in turn reduced the cost of living and the data shows the burden of rents has reduced by 5-10 per cent this year. As per the data provided by Mercer in its survey, in Gulf two UAE cities remain most expensive. Among the 10 most expensive cities across the globe, 6 are in Asia ranked Hong Kong comes first followed by Tokyo, Zurich, Singapore, Seoul and Luanda. The least expensive cities are Tashkent, Tunis, Bishkek, Banjul and Karachi.