Dubai and Abu Dhabi become more affordable

SourceKhaleej Times
SectorEconomy
CountryUAE

Dubai and Abu Dhabi became more affordable this year, as the cost of living declined due to a drop in oil prices and deflationary pressure, says a new report. Abu Dhabi moved 10 places down from the 43rd to 53rd position in The Economist Intelligence Unit’s latest Worldwide Cost of Living Index 2020, while Dubai slipped from the 58th to 66th position. “The key reason behind the reduced cost of living in the UAE was the decline in oil prices. Due to the plunge in global crude prices, the UAE has been facing deflationary pressures. This has affected the shopping basket of the consumer and the clothing sector,” said Upasana Dutt, head of Worldwide Cost of Living and Liveability Index at The Economist Intelligence Unit. She said that the price trends in the UAE are not likely to see a further downward trend as oil prices recover moderately, though she expects a still subdued consumer sentiment in 2021. Tel Aviv is the most expensive city in the Middle East and North Africa (Mena), as the cost of living in the Israeli capital jumped in 2020. Tel Aviv rose two positions to the ...read more...