(MENAFN- Khaleej Times)
Published: Tue 2 Jul 2024, 7:13 PM
Last updated: Tue 2 Jul 2024, 10:16 PM
The cost of living in the UAE increased during the first half of 2024, even as its quality of life ranking saw a massive jump.
According to global database provider Numbeo, Dubai's ranking in the cost of living index rose from 138th at the beginning of 2024 to 70th at the end of the first half of 2024. Abu Dhabi's rank rose from 164th to 75th in the index during the January-June period.
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Inflation in the UAE has also been influenced by global factors as the country imports a large number of consumer products from other countries. Petrol prices, which have been aligned with global rates, have risen from Dh2.71 per litre in January to Dh3.22 in May before slipping to Dh3.02 a litre in June.
Rents in the UAE have been on the rise after the pandemic, especially in Dubai and Abu Dhabi due to the influx of foreign professionals and high-net-worth individuals. According to Property Monitor report for May 2024, Dubai's red-hot rental market has seen prices more than double in some communities post-pandemic. According to data from the Dubai Land Department, the number of rental registrations in the year to date to May 2024 reached a total of 255,178, marking an increase of 5.9 per cent compared to the year prior.
The Dubai Statistics Centre data showed inflation in the emirate rising from 109.91 in January to 111.34 in May, driven by housing; water, electricity, gas and other fuels; furnishing and household equipment; and transport.
In order to keep basic commodity prices and inflation in check, the UAE's Ministry of Economy has put a price cap on nine basic commodities which includes cooking oils, eggs, dairy, rice, sugar, poultry, legumes, bread and wheat. Retailers need prior from the Ministry in order to increase prices.
Quality of life
Both emirates also saw a massive jump in their quality of life ranking during the first half of 2024. This was driven by an increase in the purchasing power of the residents as well as facilities offered in healthcare, education and other sectors to citizens and residents.
Numbeo ranks Abu Dhabi at 17th in the first half of 2024, as compared to 54th at the beginning of the year. Dubai's position improved from 57th to 49th among 178 cities during this period.
On Monday, the World Bank issued its latest country classification by income level for 2024-24 ranking the UAE among high-income countries along with Canada, Japan, the US, South Korea, Saudi Arabia, West European countries and Australia.
The UAE government has also taken a number of initiatives such as housing for the citizens and other support measures in healthcare and education sectors for its citizens and residents to improve quality of life. In addition, schemes such as job loss insurance also helped improve employee sentiment in the local market.
In addition, the UAE announced earlier this year that healthcare insurance will be mandatory from next year, which will substantially boost healthcare and quality of life in the country.
In terms of safety, Abu Dhabi was ranked the world's safest city again, followed by Doha and Dubai.
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