Cost of living: Dubai becomes more affordable

A tight lid on the prices of many day-to-day items, coupled with a relatively stronger US dollar, made Dubai one of the most affordable cities to live in, according to a new study.

The 2013 Cost of Living survey published by Economist Intelligence Unit (EIU) shows that Dubai’s cost of living rank declined from No. 94 last year among 131 metropolitan cities surveyed to No. 96 this year – a drop of two places.

This is over and above the decline of 16 spots that Dubai witnessed last year, when it dropped from No. 78 worldwide to No. 94. The continuous decline in the emirate’s relative cost of living (Dubai was ranked at No. 80 five years ago, and No. 56 a decade ago) boosts its competitiveness as a magnet for businesses as well as professional workers.

Neighbouring Abu Dhabi, on the other hand, rose 8 positions in the index, from No. 91 in the previous edition of the EIU study to No. 83 this year, suggesting that the UAE capital is a relatively more expensive place to live in than its more flamboyant neighbour.

In the past five years, Abu Dhabi has indeed become a more expensive place to live in, primarily because rentals have firmed up and the price of petrol – which was earlier subsidised more than what it was than Dubai – has increased and is now standardised across the country