Cost of living adjusts in UAE amid rapid economic growth, Mercer 2023 report shows

Cost of living adjusts in UAE amid rapid economic growth, Mercer 2023 report shows

- Data shows that despite inflationary pressures, UAE’s economic fundamentals bode well for growth and personal quality of life

- Non-oil economic expansion and wage growth are identified as critical factors counteracting inflation and contributing to the UAE's economic resilience

Dubai: Mercer’s Cost of Living 2023 survey released today paints a comprehensive picture of global affordability, with Dubai and Abu Dhabi moving up in the rankings to the 18th and 43rd spots respectively. However, the UAE continues to showcase robust economic growth and resilience despite these changes, which provides a promising outlook for the future.

One of the key drivers behind the changes in 2023 rankings is the surge in rental costs. Notably, after Singapore (2nd) which has seen rent increases averaging 50% depending on the area, Dubai is the second city in the survey where the rental cost has had a significant impact on the ranking with rent increases averaging 25%. By contrast, the impact of housing movement has been notably lower in Abu Dhabi, where the change ranges between 6-8% and in some areas remains the same as last year. Outside of the rental increases, the survey has identified an increase in the cost of living in other categories in both