Cost of Living

How much does living in Saudi Arabia cost?

The overall cost of living in Saudi Arabia is similar to that in most European countries, if you’re living in the style of the average western expatriate.

But the general lack of taxation has a significant impact on the cost of certain items, e.g. cars. On the other hand, the cost of accommodation is sometimes high, as is that of certain food items, particularly imported foods. If you buy internationally recognised branded foods and household goods, you might pay higher prices than in your home country, but there are usually plenty of cheaper locally and regionally produced alternatives that are of excellent quality. Clothing can also be expensive if you favour designer labels – this isn’t peculiar to Saudi Arabia – although there’s little need for winter clothing.

The price of wines and spirits, where these are permitted, is slightly lower than in the UK but higher than average European prices. Electronic goods, such as televisions, hi-fis, DVD players, photographic equipment and computer hardware and software, are generally less expensive than in Europe, mainly because of lower import duties.

Utilities, such as electricity, water and gas, are subsidised to some extent by the region’s governments, which own the services (except for bottled gas supplies) in order to provide inexpensive electricity and water, mainly for the benefit of the local population. Utilities are therefore cheaper than in most European countries. However, at the height of summer, air-conditioning costs will escalate, rather as the cost of heating increases in winter in colder climates. Newcomers sometimes make the expensive mistake of keeping their air-conditioning on even when they’re out, but this is unnecessary, as air-conditioning systems reduce the temperature in your accommodation quickly when activated on your return home.

You should also allow for the cost of international telephone calls, although these are kept low by Saudi Arabia’s government, who wants to encourage international business and investment in the region.

Your cost of living will obviously depend on your lifestyle. When you’re negotiating a work contract, it’s usual for your prospective employer to produce detailed cost of living figures for his country, which are useful in helping you to decide whether the proposed job is financially attractive or not. Average monthly major expenses for a single person, couple and family with two children are shown below (numbers in brackets relate to the notes following the table).

1. Rental costs for a one-bedroom apartment in a modern block, probably unfurnished, a two-bedroom apartment in a similar block and a two or three-bedroom apartment or a modest villa. Apartments might have air-conditioning included in the rent. Satellite television is probably provided but is unlikely to include all channels. A swimming pool and/or gym are usually provided.
2. Doesn’t include luxury food items or alcohol.
3. Includes electricity (and air-conditioning), water (and usually sewage if charged in conjunction with the water, as is normal) and an allowance for telephone charges.
4. Includes entertainment, dining out, sports, newspapers and magazines but not holidays (air fares are often included in work contract terms).
5. Includes running costs for an average family car plus third party insurance, petrol, servicing and repairs, but excludes depreciation and credit purchase costs.
6. Includes private health, travel, car and contents insurance. Note that property is rented, so building insurance is usually unnecessary.
7. Lots of clothing is unnecessary in the region’s hot climate. Office wear for men is a shirt and tie, except for formal occasions.

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Also in this section

• Currency: The Saudi Riyal and international transfers
• Banks: Where to manage your finances
• Opening an account: How to open a bank account in Saudi Arabia
• Debit and Credit Cards: How to use cards in Saudi Arabia
• Cash & travellers' cheques: How to use them
• Foreign & Offshore Banking: Where to keep your money abroad
• Cost of Living: How much does living in Saudi Arabia cost?

Comments from other users

• A bit on the low side for housing

  a 3-bedroom villa on a western compound costs about 4 to 6 times as much as the stated 1200 dollars per month. (Late 2008)
  Reply Ruth, 11 December 2008
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    A lot low on the food side

    You are way off the mark with regards to food. 500g gub of flora over £3, 375g breakfast cereals nearly all over £3, I find the weekly shopping bill is at least 50% higher in Kingdom and toiletries are very expensive.
    20 Feb 2009, 06:12 Jeff
  •  

    wrong info

    who writes this stuff !
    The prices mentioned are way off !
    02 Mar 2011, 03:11 abhi
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• Oh I see

  "The price of wines and spirits, where these are permitted, is slightly lower than in the UK but higher than average European prices."
  
  I see - you've actually never even been to the Kingdom have you?
  Reply Ruth, 11 December 2008
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• Sorry to tell you that you are spreading misinformation...

  Spirits/Wines/Beers/Liquor is strictly prohibited in the KSA. There is no place one can legally buy or consume alcohol. Got it?
  Reply Mat, teacher moving to KSA soon, 12 August 2009
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• Objection on Article

  Hi ,, Above posted Article doesn't seem to be fair and true, because i am living in Saudi Arabia since 12 years and enjoying my life standards in a luxury way. Above mentioned cost PM (per month) is highly exaggerated and i recommend to amend the information.
  
  $ 4,125 = SAR 15,469 .. What would be the income to manage these expense per month. its seems that person earning 30,000 or above can live in Saudi Arabia and others cant afford as in single its $ 2,350 = SAR 8,813. means a bachelor must be earning 15,000 or above and if so Why is he alone then ? A single ll buy new cloths each month amounting to $150 i.e SAR 563 . lol..
  
  I am living in a Huge villa with 5 rooms + 2 bathrooms + big lounge + big drawing room and out door villa portion to play even football or volley ball and the area is peace full and fully facilitated and secure and I'M paying 30,000 PA that comes to SAR 2,500 for 5 person in house..
  
  thanks..
  Mohammad Hasnain
  Email.
  Reply Mohammad Hasnain, 27 September 2010
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