Cost of Living in Dubai and the UAE 2026: Rent, Utilities, Fuel, Transport and Schools

Inflation

Inflation
Measure	Figure
UAE average inflation, 2025	1.3%
Abu Dhabi, 2025	0.3%
Dubai, 2025	2.8%
Dubai, Q2 2026, year on year	5.3%
Dubai, September 2026	5.03%
Central Bank forecast for the UAE, 2026	2.4%

Source: Central Bank of the UAE: Quarterly Economic Review, March 2026; Central Bank of the UAE: Quarterly Economic Review, September 2026; The National: Dubai inflation eases even as fuel costs rise (13 October 2026); Statistics Centre Abu Dhabi: Consumer Price Index, annual 2025^1,2,3,4

Housing

Rent is the largest cost for most residents. In Dubai, average residential rents were AED 76.1 per sq ft a year in Q1 2026. Tenants also pay a housing fee of 5% of the annual rent to Dubai Municipality, added to the monthly DEWA bill, and VAT does not apply to it. In Abu Dhabi, a municipality fee of 5% of the rent or the rental index, whichever is higher, is added to the water and electricity bill across 12 months once the lease is registered in Tawtheeq.^5,6,8

Registering a tenancy contract in Ejari costs AED 177.75 through the Dubai REST app. Renewal increases are capped by the RERA rental index under Decree No. 43 of 2013.^13,6

Electricity and water in Dubai

Electricity and water in Dubai
Residential electricity, monthly use	Fils per kWh
0 to 2,000 kWh	23
2,001 to 4,000 kWh	28
4,001 to 6,000 kWh	32
Above 6,000 kWh	38
Fuel surcharge, October 2026	6

Source: DEWA: Slab tariff⁷

Electricity and water in Dubai
Residential water, monthly use	Fils per imperial gallon
0 to 6,000 gallons	3.5
6,001 to 12,000 gallons	4.0
Above 12,000 gallons	4.6

Source: DEWA: Slab tariff; DEWA: Executive Council Resolution No. 16 of 2011 approving the electricity and water tariff in Dubai^7,15

VAT at 5% is added to DEWA consumption charges. UAE nationals have separate, lower tariffs. Abu Dhabi, Sharjah and the Northern Emirates have their own utility companies and tariffs.^8,7

Getting around

Getting around
Item	Price
Super 98 petrol, October 2026	AED 4.40 per litre
Special 95 petrol	AED 4.28 per litre
E-Plus 91 petrol	AED 4.21 per litre
Diesel	AED 4.80 per litre
Dubai Metro or bus, Silver nol card, 1 zone	AED 3
2 zones	AED 5
More than 2 zones	AED 7.50
Silver nol card	AED 25, including AED 19 of credit
30-day pass, all zones	AED 350

Source: WAM: UAE fuel prices for October 2026 announced; RTA: nol fares^9,10

Fuel prices are set monthly by the UAE Fuel Price Committee, so check the current month before budgeting.⁹

Schools

Dubai had 227 private schools with 387,441 students in 2024-25. KHDA has frozen private school fees for 2026-27, so schools may not raise tuition this year. Annual tuition at schools rated Outstanding ranges from about AED 29,500 to AED 111,800.^11,12,14

Health insurance

Health insurance is compulsory for residents. Under the basic health insurance scheme for private sector workers and domestic workers, the employer pays for the cover, and the basic package costs AED 320 a year.¹⁶

Frequently Asked Questions

What is the housing fee in Dubai?

5% of the annual rent, paid to Dubai Municipality through the monthly DEWA bill. VAT does not apply to it.

How much does the Dubai Metro cost?

With a Silver nol card, AED 3 for one zone, AED 5 for two and AED 7.50 for more than two. A 30-day all-zones pass costs AED 350.

Sources

Figures checked 21 October 2026. Prepared by Invest-Emirates.ae for general information. It is not investment, tax or legal advice; please confirm details with a qualified adviser before acting.

Cost of Living in the UAE