Starting a business in Dubai is much easier than most countries. There’s a lot less red tape and the application times are faster. Certain areas even offer no tax obligations. However, it’s important to consider the cost of living in Dubai in 2025 before you make the move.
Why is Dubai Still a Popular Choice?
In 2025, Dubai’s inflation is expected to stay between 2.5% and 3.5%, mostly because of rising housing and food prices. Even with that, the economy is staying strong thanks to growth in tourism, real estate, trade, and innovation industries.
Dubai continues to be an ideal base for entrepreneurs. Here’s why:
- Tax benefits: The UAE offers no personal income tax and a 9% corporate tax, with exemptions available for qualifying companies in certain free zones.
- Free zones: There are over 20 free zones in Dubai, each allowing full foreign ownership and cater to a wide range of specialized business activities.
- Strategic location: The UAE is strategically located at the crossroads of Asia, Europe, and Africa, making it a global hub for trade and logistics.
- Quality of life: Residents benefit from a high standard of living that is supported by strong, modern infrastructure and healthcare.
- Government support: The local government has introduced funds and other entrepreneur-friendly incentives to offer subsidized Dubai startup costs.
What are the Living Expenses in Dubai for Expats?
These are the average Dubai monthly expenses in 2025. These expenses are ballpark figures and will be affected by your location and lifestyle.
Overview of Cost of Living in Dubai 2025
Category | Avg. monthly cost (Single) | Avg. monthly cost (Family of 4) |
Rent & utilities | AED 6,000 – 12,000 | AED 14,000 – 20,000 |
Food & groceries | AED 1,500 – 2,500 | AED 3,500 – 5,000 |
Transportation | AED 500 – 1,000 | AED 1,200 – 1,800 |
Healthcare | AED 800 – 1,500 | AED 2,000 – 3,500 |
Miscellaneous | AED 1,000 – 2,000 | AED 2,000 – 4,000 |
Housing & Rent Expenses
Accommodation is usually the largest living expenses in Dubai. Rent costs have gone up by roughly 10 to 20% compared to last year. If you’re looking to find a place in the city, these are the estimated Dubai rent prices in 2025:
- 1-bedroom apartments: In central areas like Downtown, Business Bay, or Dubai Marina: AED 80,000 – 120,000 per year.
- Apartments: In suburban areas such as JVC, Al Furjan, or Silicon Oasis: AED 55,000 – 75,000 per year.
- Villas: AED 180,000 – 350,000 per year
Utility Costs
You can expect to pay around AED 600 – AED 1,000/month for utilities if you’re living by yourself and up to AED 2,500 if you have a family.
In Dubai, utilities are broken down into:
- Water & electricity (DEWA): AED 400 – 800/month
- Air conditioning (Empower): AED 300 – 900/month
- Internet & data: AED 350 – 800/month
Your AC costs are likely to be higher in the hotter months, although some residences include cooling charges as part of your rent. It’s best to confirm with your landlord before you sign the contract.
- Primary school: AED 25,000 – 45,000 per year
- Secondary or international schools: AED 50,000 – 80,000 per year
The Cost of Doing Business in Dubai
- Business jurisdiction (Mainland vs freezone)
- Business activity
- Type of trade license (Commercial, industrial, professional)
- Type of office space (physical space, flexi-desk, virtual address)
- Number of employees (for visa requirements)
- IFZA (International Free Zone Authority): Licenses start at AED 12,900
- Meydan Free Zone: Licenses start at AED 12,500
- Dubai South: Licenses start at AED 12,000
Streamline Your Business Setup Process
Cost-Saving Tips for Entrepreneurs Moving to Dubai
- Live Close to Public Transport or Join a Carpool
Dubai has a good Metro and bus system that connects most business areas. If you live near a Metro station in places like Al Barsha or Bur Dubai, you can save a lot on taxi fares and fuel. If your office is not close to a Metro station, try carpooling to share travel costs. - Start Your Business in a Free Zone
Setting up your company in a free zone can help you save on office rent and business fees. This is great for new entrepreneurs who are just starting out.
- Be Smart About Using Electricity and Air Conditioning
During summer, air conditioning can increase your utility bills. Try setting your AC at 24 degrees, and use curtains to block heat during the day. You can also switch off any appliances that aren’t in use. This can help reduce your DEWA & Empower bill.
- Rent Short-Term at First
Don’t rush into signing a long-term rent agreement when you first arrive. Stay in a short-term place while you explore different neighbourhoods. You might find areas that offer better prices than central locations like Downtown.
- Plan Your Meals and Track Your Spending
Eating out often can get expensive in Dubai. Try cooking at home or using affordable meal delivery services. Use money management apps like Spendee, Yolt, and Buddy to keep track of your spending and stay within your budget.
- Try Free and Discounted Activities
Places like Al Seef, Jumeirah Corniche, Al Qudra Lakes and Ras Al Khor Wildlife Sanctuary offer budget-friendly fun for residents. You can also use apps like The Entertainer, Groupon UAE and Cobone to find discounts on dining and entertainment.
- Join a Local Network
There are multiple entrepreneur networking events across the city, specifically for expats. Meeting like-minded people can help you understand the country’s business landscape and build a community.
