UAE ranks highest, Oman lowest in 2025 Gulf cost of living
Emirates ranks highest in cost of living among GCC nations, with Oman offering the lowest expenses in the region
UAE Leads Gulf in 2025 Cost of Living Index, Oman Remains Most Affordable
The UAE tops the list of Gulf Cooperation Council countries in the Cost of Living Index for 2025, followed by Bahrain, then Qatar, Saudi Arabia, Kuwait and finally the Sultanate of Oman.
The UAE tops the list of Gulf and Arab countries and ranks 30th globally in the Cost of Living Index, while Bahrain ranks second in the Gulf, third in the Arab world and 38th globally with an average score of 48.3.
Qatar’s average score is 47.5, which places it third in the Gulf, fourth in the Arab world, and 40th globally. Saudi Arabia’s average score is 41.9, which places it fourth in the Gulf, fifth in the Arab world, and 56th globally. With an overall score of 40.4, Kuwait is ranked fifth in the Gulf, sixth in the Arab world, and 60th worldwide.
In terms of cost of living, the Sultanate of Oman was ranked sixth in the Gulf, seventh in the Arab world, and 62nd worldwide with an average score of 39.8, making it the cheapest Gulf nation.
Yemen has the second-highest cost of living in the Arab world, followed by Palestine (8th), Lebanon (9th), and Somalia (10th).
Countries with the highest cost of living include Switzerland, the US Virgin Islands, Iceland, the Bahamas, Singapore, Hong Kong, Barbados, Norway, Papua New Guinea, and Denmark, in that order.
139 countries were included in the ranking, and the cheapest countries to live in were determined to be Pakistan, Libya, Egypt, India, Afghanistan, Madagascar, Bangladesh, Russia, and Paraguay.
The annual index is based on five global benchmarks to assess cost-of-living ratios in each country, including average rental prices, average cost of living with rental costs, average grocery prices, average restaurant prices and average purchasing power of local currency based on average net salary.
