UAE definitely has become an affordable place to live for expatriates because of the decline in the cost of living even after the introduction of the value-added tax VAT. It can be accredited to the consistent decrease in rent prices, low price of oil and the impact of strong local currency. According to a recent survey, Dubai has fallen out from the list of most expensive cities to live; rating has declined from 19th to 26th position.
Affordable living is making UAE ideal
Living and earning in the UAE is a dream of most persons who want to build career. There are vast opportunities available in the country. Unfortunately higher living costs combined with impression of UAE being an expensive place for living, have forced many prospective expats to compromise on their dreams. With recent reforms, UAE has become a competitive place for retailers when they avail promotions and offers.
Living made easy by the government
UAE government has taken measures to ensure that the cost of living for the citizens and expats decreases with the latest reforms and regulation announced by the authorities. Rental decline is the biggest reason for making UAE affordable for expatriates because a big chunk of income is utilized for rental payment. Surplus property projects have contributed to decline in rental prices.
UAE government has also reduced (or completely frozen) fee in different sectors. Many of the federal taxes are not going to be raised. Resultantly, these measures are lowering the living cost and providing ease in doing business in UAE; this is resulting in boost of overall economy and improving affordability. Tax levied on expatriates is lesser in UAE when compared globally. Despite the introduction of VAT, the cost of living is reduced due to the initiatives taken by the government; they are undoubtedly having an extensive effect.
UAE continues to be an attraction for expatriates
Recent developments offering affordable living cost in Dubai as compared to other cities makes UAE an attractive country for expat employees. The reduction and freezing in certain fee of different sectors is leaving a positive impact on the UAE residents.
Most UAE emirates and Middle Eastern cities are rising in livability ranking due to the decline in the accommodation. The reason for decline in rental amount is the start of new projects, while many projects are in pipeline.