You've got a job offer from some Dubai based company and you are confused if your salary is good enough to support you and your family, in case you decide to shift? Are you mesmerized by the spectacular developments going on in Dubai and you are planning to tour Dubai in your vacations? Or you are interested in investing in Dubai real estate and you need to know the cost of living before you finalize your investment decision? In any of the above scenarios, you must be looking to get an idea of cost of living in Dubai. Cost of living is generally described as the cost of basic necessities of life. Let's have a look at what kind of prices you can expect for these basic necessities like residence, food, transportation and entertainment.

Food & Drink:

Dubai has got a variety of food, both in terms of cost and cuisines. Fast food chains (McDonalds, KFC, etc) are still relatively cheaper than other big cities; also the South Asian food restaurants offer quite inexpensive meals. If you are living on a limited budget then going for the locally made food items can be a wise move, instead of buying imported stuff. You don't need to worry about quality in either way. Similarly, the prices of drinks also differ; Alcohol is expensive (and available only at licensed bars and restaurants) however soft drinks are not that costly.

Shelter:

Dubai is regarded an expensive city mainly because of it's ever increasing rents and real estate prices. The chief reason behind these hikes is the demand factor. If you are visiting Dubai as a tourist, you will be spending a big part of your budget on your hotel stays. If you need to save on that, try searching for some less expensive hotels in the old city. If you are going there to work, chances are that your employer will provide you with accommodation. If not, you can share residence with someone or get a place to live in Sharjah or Ajman, which are not far away.

Transportation & Entertainment:

United Arab Emirates has got some of the largest oil reserves so oil is quite cheap in this part of the world. If you are having your personal conveyance, you'll find traveling quite easy on your pocket. Other options include bus service, metro or taxis (they can be expensive though). Dubai is not short of entertainment options either, which may seem a little bit expensive but given that they are often once in a lifetime experiences, they are well worth it.

Real estate prices & rents:

Someone coming from London or Tokyo will not find the city extremely expensive but the prices do hurt expatriates arriving from countries like Pakistan or India. Sky rocketing rents and high prices are making it hard for lower class (which mainly consists of labors) to reside in Dubai. More and more workers are now looking to settle in the neighboring estates where rents are much lower than Dubai.