DUBAI: The Middle East’s favorite expat destinations Dubai and Abu Dhabi have been ranked as the most expensive cities to live in the Arab world, Mercer’s latest Cost of Living Survey showed, with the former moving up the rankings to the 20th spot and the UAE capital coming in at 23 on the list.
Four other Gulf cities — Riyadh (52nd), Manama (55th), Doha (81st) and Muscat (91st) — also figured in the top 100 rankings, while Kuwait City and Jeddah were placed 111th and 117th respectively, according to the report.
Luanda in Angola is the most expensive city for expats in the world, followed by Hong Kong, Tokyo, Zurich and Singapore.
Nuno Gomes, principal information solutions leader for Mercer Middle East, North Africa and Turkey, said Dubai and Abu Dhabi’s rise in the rankings is attributable to the rapid increase in costs in the UAE compared with other cities.
“The survey covers all elements of spending, not only on daily life in terms of food, transportation, etc, but also other elements such as housing and other goods and services that are consumed on a regular basis,” Gomes said, according to The National newspaper.
“If you look at all those factors, we have seen a slowdown, or at least not an increase on the housing front, which really has contributed in the past to accelerate the position in the rankings. But generally speaking, food at home, food outside of home, other goods and services have become more expensive. It is not a tremendous increase, we are talking about a climb in one (and two) positions in the rankings.”
On the other hand, Gomes noted that currency fluctuations did not have a huge effect on spiraling living costs in the Gulf states.
“This year, currency fluctuation was less of a factor in worldwide changes in the rankings — so the slight rise on the list represents a true increase in the cost of living in the UAE when compared to other cities globally,” Gomes said.
It may be a different story, however, when the Gulf Cooperation Council-wide value added tax (VAT) comes into effect January 1 next year.
With the introduction of VAT, Gomes said there was expectation that “some of that will get reflected in consumer spending as well and prices at supermarkets and other goods and services.
“There is an expectation that inflation will (continue to) increase over the next two to three years. That is only going to propel Dubai and Abu Dhabi further up in the rankings. We don’t know what sort of currency issues we will face in the near future, but if everything remains as it is, then we could expect that Dubai and Abu Dhabi continue to rise slightly in the rankings due to higher inflation,” he said.
Dubai, Abu Dhabi ranked Arab world’s most expensive cities to live for expats
Dubai, Abu Dhabi ranked Arab world’s most expensive cities to live for expats
Oman money supply rises 6.4% to $68.6bn in November
JEDDAH: Oman’s money supply climbed 6.4 percent to 26.4 billion Omani rials ($68.6 billion) in November, signaling solid liquidity conditions and continued growth in bank deposits, official data showed.
The increase in broad money — a measure that includes cash in circulation and bank deposits — was driven by a 12.2 percent rise in cash and demand deposits, alongside a 4.1 percent increase in savings and time deposits, the Oman News Agency reported.
The latest reading follows steady gains earlier in 2025, with money supply up 6.1 percent in the three months through August. This was supported by a 6.9 percent rise in narrow money and a 5.8 percent increase in quasi-money. The trend reflects sustained liquidity conditions and stronger deposit growth across the banking system.
The expansion in monetary aggregates points to continued liquidity and policy support for private-sector lending, as Oman advances fiscal and economic reforms under its Vision 2040 strategy.
“During the same period, currency in circulation increased 1.9 percent, while demand deposits rose 14.1 percent,” the ONA report stated.
At conventional commercial banks, the weighted average deposit rate in Omani rials declined to 2.50 percent in November from 2.73 percent a year earlier, while the weighted average lending rate eased to 5.45 percent from 5.67 percent over the same period.
The overnight interbank lending rate averaged 3.92 percent in November, down from 4.56 percent a year earlier, reflecting a decline in the weighted average repo rate to 4.5 percent from 5.30 percent, influenced by US Federal Reserve policy shifts.
Meanwhile, total assets of Islamic banks and windows reached about 9.3 billion Omani rials by the end of November, accounting for 19.4 percent of the Gulf state’s total banking sector assets.
“This marks a 12.3 percent increase compared with the same period in 2024,” ONA reported, citing data from the Central Bank of Oman.
Total financing by Islamic banking units rose 10.3 percent to around 7.5 billion rials, while deposits increased 10.9 percent to approximately 7.3 billion rials by the end of November.
The November data follows the International Monetary Fund’s 2025 Article IV consultation report, released earlier this month, which highlighted the continued resilience of Oman’s economy amid global uncertainty.
The IMF cited steady growth in non-hydrocarbon sectors, low inflation, and broadly sound fiscal and external positions, underscoring the effectiveness of Oman’s coordinated economic and financial policies.
