The two cities of Ras Al Khaimah and Dubai have beautiful beaches and bustling central attractions. What is the cost? Let’s examine the costs to determine which one is more affordable.
Key Takeaways
- The price of life is considerably less expensive than Dubai’s. 25.5 percent lower prices for consumer goods, including rent.
- Rents for homes in Ras Al Khaimah are 45.5 percent lower than in Dubai, which makes it a more affordable feature for living.
- Ras Al Khaimah offers a greater rental yield of 6-8 percent compared to Dubai’s 5-8 percent, resulting in higher investment returns.
- Food items available in Ras Al Khaimah are 4.8 percent more expensive than those in Dubai; however, all-in living costs are considerably lower.
- The purchasing power of residents of Ras Al Khaimah is 3.6 percent higher than in Dubai, giving residents more purchasing power.
Cost of Living Contrast
Housing Costs
If you look at the costs of living in Ras Al Khaimah and Dubai, the housing prices stand out as a significant distinction; for Ras Al Khaimah, a one-bedroom apartment in the city center is priced at AED 2,793.95 monthly.
In Dubai, the same apartment is priced at AED 8,229.08, 66% higher. If you are looking for a one-bedroom apartment away from the city’s center, Ras Al Khaimah has an average rental of AED 3,524.08, and Dubai costs AED 5,101.40, that’s a 30.9 percent difference.
The cost of a three-bedroom apartment also differs significantly. Within Ras Al Khaimah’s town center, a three-bedroom apartment costs an average of AED 9000 monthly.
In Dubai, it’s AED 15,218.24, a 40.9 percent difference. Out of the city center in Ras Al Khaimah, three-bedroom homes cost an average of AED 6000, whereas the average for Dubai is AED 10,533.33, a 43 percent difference.
Interestingly, the housing market in Ras Al Khaimah is more affordable than in Dubai and Abu Dhabi—rents per month for apartments on Al Marjan Island average around AED 3,083. Al Nakheel’s average AED is 1,333.
Villas are the most expensive. Al Dhait has monthly rents that average AED 4,667. Mina Al Arab costs more than AED 8,500 a month.
Grocery Costs
Prices for groceries in Ras Al Khaimah are often cheaper than in Dubai. For instance, milk costs approximately AED 20.89 in Ras Al Khaimah.
In Dubai, it’s AED 26.61, which is 21.5 percent more. A loaf of fresh white bread costs AED 3.91 in Ras Al Khaimah. It’s AED 5.27 in Dubai, an improvement of 25.8 percent.
Eggs are also less expensive in Ras Al Khaimah, costing AED 9.60 for 12 compared with AED 11.95 for a dozen in Dubai, a 19.6 percent difference. However, it’s not all the same in Ras Al Khaimah. Local cheese (1 1 lb) is priced at AED 26.88, 88.8 percent more than Dubai’s 14.24.
Restaurant Costs
Ras Al Khaimah is often less expensive to eat at restaurants and bars than in Dubai. For a cheap dinner, you can expect to spend approximately AED 35 to dine in Ras Al Khaimah and AED 40 for Dubai, which is a 12.5 percent reduction.
A moderate three-course meal for two is about 200 AED for a meal in Ras Al Khaimah but increases to AED 300 in Dubai, which is a 40% boost.
Fast-food food can be more affordable in Ras Al Khaimah. A combination meal at McDonald’s or similar places costs AED 25 in the city, whereas it costs AED 35 in Dubai, a 28.6 percent cut. Drinks such as imported and local cappuccinos, beer, and wine are also more affordable in Ras Al Khaimah.
Transportation Costs
There are significant differences in the cost of public transportation between Ras Al Khaimah and Dubai. In Ras Al Khaimah, a one-way ticket costs AED10. In Dubai, the price is AED 7, which is 42.9 percent lower.
Additionally, the monthly pass for public transportation within Ras Al Khaimah costs AED 225 on average. This is a quarter less than the AED 300 charged in Dubai.
Taxis to Ras Al Khaimah are cheaper, starting at 5.50. In Dubai taxis, the cost begins at AED 12, 54.2 percent more. The fuel prices in Ras Al Khaimah are also lower, starting at AED 11.05 per gallon. In Dubai, it’s AED 11.35, which is 2.6 percent more. Car rental prices are usually less expensive than in Ras Al Khaimah.
Monthly rental prices for cars within Ras Al Khaimah can range between AED 1,000 and AED 2,250. In Dubai, these prices are more expensive.
In general, the costs of transportation in Ras Al Khaimah are more affordable than in Dubai. This makes it a more affordable option for both residents and tourists.
Utility Costs
Ras Al Khaimah is usually less expensive for utilities than Dubai. The monthly average cost for the essential utilities such as electricity and heating, cooling garbage, and water for a 915 square foot home costs AED 547.07. This is 25.3 percent less than AED 732.78 for the same space in Dubai.
Mobile phone plans that include calls and 10GB or more data cost AED 177.78 monthly in this country, 10.1 percent lower than the Dubai price of AED 197.80.
High-speed internet of up to 60 Mbps and unlimited data and cable/ADSL prices AED 358.62 monthly. This is 2% less than the Dubai price of AED 365.99.
Ras Al Khaimah’s lower utility costs result from the lower cost of living compared to Dubai. The price difference is essential for families and individuals considering living costs in these two locations.
Healthcare Costs
In the cities of Ras Al Khaimah and Dubai, the healthcare costs vary. Dubai is one of the most popular destinations for medical tourism, allowing approximately 690 medical visitors in 2023.
At the end of 2020, the city is expected to welcome over 1 million tourists. Health insurance costs in the UAE will vary. A basic plan offered by Noor Takaful, based in Ras Al Khaimah, begins at a monthly cost of AED 500 to one individual.
However, the most expensive plan from AXA is AED 2,250 for a single person or AED 13,000 for global protection with more perks. Dubai’s best health insurance plan is around AED 10,000 (2,720 USD) annually.
Employers in Ras Al-Khaimah do not have to provide health insurance. However, Dubai and Abu Dhabi residents must have insurance or risk a penalty of 500 AED (136 USD).
If you’re a person with a lower income, the UAE provides the Essential Benefits approach for those earning less than 4000 AED (1,090 USD) monthly.
The cost ranges from 550 to 700 annual AED (150 or 175 dollars). Additionally, the cost of healthcare depends on the age of your child, beginning from 100 AED (27 dollars) for children under the age of 10 to 200 AED (54 USD) for teenagers as well as 300 AED (82 USD) for adults.
Hospitals in the public sector located in the UAE are more affordable. However, they can require a longer wait to see the doctor. Private hospitals are more efficient, but they are more expensive. In addition, public insurance usually isn’t able to cover hearing aids, eye surgery, or dental exams. You may need additional insurance for your family members.
