We have all heard that Dubai is expensive. But how is it far from the truth if you count in zero tax on your salary and various options to save money? What can you expect with a salary of 15,000 AED per month in Dubai?
As someone who experienced Dubai a lot, I can provide insights to help evaluate whether the 15,000 AED salary is sufficient for a comfortable lifestyle in the flourishing city of Dubai.
Overall, 15,000 AED per month is a liveable salary for a single person in Dubai. With this salary, you can’t expect to have a lot of disposable income, but making smart choices on your spending will make your living comfortable. Living on 15,000 AED per month as a couple is possible too, but your budget will be stretched.
Understanding Salaries and Cost of Living in Dubai
Undoubtedly, Dubai is a fast-growing major city and will likely keep its growth rates for the next 10-15 years.
So, it is a popular destination for job seekers and professionals due to its tax-free income and relatively high salaries.
Let’s explore the different aspects of working in Dubai and how a 15,000 AED salary fits in.
Average Salary in Dubai
According to SalaryExplorer, a person working in Dubai typically earns around 21,500 AED monthly.
To give you a better understanding of the currency, 21,500 AED is equivalent to about 5,850 USD per month.
But don’t let this number mislead you. The number is that high because it includes salaries of higher management, which can be disproportionally high.
Overall, 15,000 AED is considered a good entry salary for junior or mid-level positions.
But what kind of lifestyle can you get with this salary in Dubai?
Cost of Living in Dubai
Determining the cost of living in Dubai can be a bit tricky since there are a huge variety of options, both cheap and ultra-expensive.
It’s nowhere close to what European folks got used to when many things and experiences cost widely the same.
To provide more context, here’s a rough estimate of some common entry-level monthly expenses:
- Housing: 1 BHK (one-bedroom, hall, kitchen) apartment rental prices depend on the neighborhood, but typically cost between 6,000 and 10,000 AED.
- DEWA: For a rented apartment, DEWA bills can range from 400 to 600 AED.
- Mobile connection: A typical mobile phone plan can cost between 300 and 500 AED.
- Food and groceries: Monthly food expenses can be between 2,000 and 4,000 AED, depending on whether you cook at home or eat out more frequently (there are plenty of cheap eating out options in Dubai).
- Travel: Public transportation costs, including metro, bus, and taxi, typically range from 200 to 500 AED per month (you will have to use a taxi sometimes).
Considering these factors, the basic cost of living for a single person in Dubai can be estimated between 8,900 AED and 15,600 AED.
As a result, a salary of 15,000 AED per month would allow for a comfortable lifestyle, covering necessary expenses and offering the opportunity to save money with the right approach.
As you see, it’s possible to leave for 15,000 AED per month as a couple in Dubai too, but, likely, you will not have any disposable income for entertainment or long-term saving.
Expenses to Consider
Housing and Rent
Housing and rent take up a significant portion of a person’s budget when living in Dubai. It’s just expensive relative to most other parts of the world.
Different areas have various price ranges, and the accommodation type also matters.
A salary of 15,000 AED can afford you a comfortable place, but it’s essential to strike the right balance between location and affordability.
Location is important to save the time and money you spend on transportation. So, I advise having a location close to the metro and your office, even if it will be more expensive initially.
If you are single, I recommend checking on renting a room in a shared apartment instead of having a full apartment for yourself. It’s very common in Dubai, and there are many options. And it can be even more fun to live with the flatmates.
Utilities and Internet
Utilities such as electricity and water (DEWA) should also be considered when budgeting your expenses.
On average, these costs can range from 300 to 500 AED per month, depending on usage and housing size.
As for the internet, you can expect to pay around 300 to 500 AED per month.
Transportation and Public Transport
Getting around in Dubai involves a mix of private and public transportation.
Overall, having your own car is a big advantage.
Even so metro is fast and comfortable in Dubai, you can’t get anywhere by it. Add to it the heat outside, especially during the summer months. Car in Dubai makes a lot of sense, considering low gas prices and savings on taxis.
You can expect to spend around 500 AED per month on transportation expenses.
Public transport options like buses, trams, and the Dubai Metro are affordable, usually costing around 6 AED per trip.
You can also opt for a monthly pass that ranges from 200 to 250 AED, depending on your travel zones.
Health Insurance
Health insurance is a crucial expense to account for in Dubai.
It’s mandatory for all residents, and although some companies provide coverage for their employees, you may need to purchase a policy if that’s not the case.
An average policy can cost anywhere from 3,000 to 5,000 AED per year, but the exact amount will depend on your age, coverage preferences, and pre-existing medical conditions.
Food and Leisure
Finally, you should also factor in the cost of groceries, dining out, and entertainment expenses.
Depending on your preference, food, and groceries can range from 2,000 to 4,000 AED per month.
Eating out can vary significantly depending on where you choose to dine. Kitchens or inexpensive restaurants may provide great value for you. If you are not living in the most expensive areas, it’s possible to have a full meal for 60 AED.
Lastly, leisure activities like visiting attractions and cinemas and indulging in hobbies will also impact your budget.
Honestly, you can’t count on buying much entertainment with a 15,000 AED salary in Dubai. It also makes your dating life a bit more limited.
Budget options include going to the cinema (about 50 AED per ticket) or walking over Dubai Marina.
Additional Factors Affecting Salary Satisfaction
Lifestyle and Personal Preferences
As a single person considering a salary of 15,000 AED per month in Dubai, it’s important for you to factor in your personal lifestyle choices, habits, and preferences.
If you got used to feeling relaxed about the money in your country, having a 15,000 AED salary in Dubai may make it hard to adjust.
It’s so easy to spend money in this city.
If you choose a more luxurious lifestyle, such as dining out frequently or engaging in various leisure activities, your expenses will increase substantially.
In this case, you either have to learn how to save money or have a plan on how to increase your income. It will be crucial to maintain your desired level of comfort and satisfaction.
But if you got used to a relatively frugal lifestyle, you will have no problem of living for 15,000 AED in Dubai.
Job Benefits and Bonuses
When evaluating the value of a 15,000 AED salary in Dubai, it’s also important to consider any additional job benefits and bonuses that may be offered.
Apart from the base salary, some companies provide healthcare coverage, transportation allowances, and end-of-service bonuses.
The inclusion of these benefits can significantly improve your overall satisfaction by mitigating some of the bigger living expenses.
Furthermore, performance or year-end bonuses can be a factor a big factor in your salary satisfaction.
If your job offers additional financial incentives based on your performance, it may help fill any potential financial gaps that might occur due to unforeseen expenses or other lifestyle choices.
To Conclude
I believe that a 15,000 AED salary can provide a comfortable lifestyle for many professionals in Dubai.
However, it’s not really enough to live as a couple, and it’s also not enough to have a good saving rate so you can start investing.
Consider 15,000 AED salary as your entry point to the city and look for ways how you can increase your income.
If you find this article useful, check more articles about the UAE and Dubai:
