.png "Interview With Expat Saanika Gandhi, Author of Children's Book 'The Yellow Kite'")
We cover six common hidden costs expats encounter in Dubai, along with practical tips to manage them
19 May 2025
| Last updated on 19 May 2025
Relocating to Dubai? These are the hidden costs to keep in mind!
Dubai is renowned for its tax-free income and luxurious lifestyle, attracting expatriates from around the world. However, beneath the glittering surface lie hidden expenses that can catch newcomers off guard.
Understanding these costs is crucial for effective financial planning and a comfortable life in the UAE.
1. Health Insurance Gaps That Could Cost You
Most employers provide health insurance, but many policies don’t cover everything, particularly dental, optical, mental health services, and certain specialist visits. Medication and consultations outside of your network can also be costly.
Check what your insurance includes and what it doesn’t. Consider topping up your coverage with supplementary insurance if necessary or setting aside a monthly amount for unexpected healthcare costs.
It’s also worth comparing rates at different clinics - sometimes smaller or less-central providers offer the same services at lower prices.
2. The Real Price of International Schooling
International school fees in Dubai are among the highest in the world, and that’s just the beginning. Uniforms, school trips, extra-curriculars, transportation, and tech supplies can drive costs up quickly.
Do your research early - some schools offer sibling discounts or payment plans. If you’re negotiating a job package, see if an education allowance can be included. Alternatively, look into reputable schools slightly outside central Dubai that may offer more affordable options without sacrificing quality.
3. Social Life Spending: The Sneaky Budget Killer
Dubai’s vibrant social scene offers countless opportunities for dining out and entertainment, which can lead to unexpected spending. Regular brunches, events, and nights out can quietly add up and impact your monthly budget.
Explore cost-effective socialising options like community events, beach outings, or home gatherings. Download apps like Cobone or The Entertainer to access discounted offers on restaurants, brunches, spas, attractions, and more.
Check out free ladies' nights - there’s something happening every day of the week as well as affordable dining packages.
Dubai is also full of hidden gems when it comes to couples’ deals and family offers, like "kids eat free" promos at popular restaurants. You just need to know where to look - a quick online search or ExpatWoman scroll can reveal plenty of budget-friendly options.
4. Driving in Dubai: More Than Just Cheap Fuel
While fuel prices can vary per month, the overall cost of owning a car in Dubai including registration, insurance, maintenance, parking, and Salik tolls can catch people off guard. Ride-hailing apps and taxis can also add up if used frequently.
Before purchasing a vehicle, consider your lifestyle and commute. Public transport is improving and is very cost-effective, especially if you live near a Dubai metro station or RTA bus stop. Carpooling, occasional rentals, or using budget ride apps like Careem’s Hala taxi service can also help reduce costs. And if you do own a car, regular maintenance is key to avoiding big repair bills later.
5. Hidden Costs When Renting a Home
Renting a home in Dubai often means paying a large sum upfront - sometimes a full year’s rent in 1–4 cheques - along with a security deposit, real estate agent fees, and DEWA utility deposits. With the current market trend, rents in many areas across the city are rising, making it more important than ever to plan ahead.
If you’re moving into a building with central air conditioning (chiller), that’s another separate deposit and monthly cost to account for. When budgeting for a move, make sure to factor in these one-time setup costs and potential rent increases.
If you're on a tighter budget, consider sharing accommodation or choosing a home that allows for more manageable payment terms. Also, monitor your electricity and water usage to keep DEWA bills in check.
6. The Lifestyle Trap: When Spending Creeps Up on You
With high salaries and a “go big or go home” culture, it’s easy to fall into the trap of lifestyle inflation - upgrading your wardrobe, booking luxury UAE staycations, or attending weekly brunches simply because you can. But this can make it hard to save or invest long-term.
Create a personal budget and stick to it. Just because your salary has increased doesn’t mean your expenses need to follow.
Set clear financial goals - whether it’s building an emergency fund, saving for travel, or investing and track your spending monthly to stay aligned.
.png?itok=EH_x0Pha "Experience Extended Stays and Special Savings at Le Meridien Al Aqah Beach Resort UAE")
