United Arab Emirates: cost of living

Does the UAE have income tax?

The UAE does not levy income tax on individuals, according to the UAE Government portal. It does levy value added tax at 5% on the purchase of goods and services, collected at each stage of the supply chain and borne by the final consumer.

The portal also lists excise tax on specific goods it classes as harmful to health, and a federal corporate tax on business profits. Because there is no personal income tax, take-home pay equals gross salary less any pension contributions, which apply only to Emirati and GCC nationals. The Federal Tax Authority administers VAT, excise and corporate tax.

Official sources: u.ae: Taxation

How are petrol prices set in the UAE?

Petrol and diesel prices in the UAE have been set by a mechanism linked to global petroleum product prices since August 2015, when fuel prices were deregulated, according to the UAE Government portal.

The pricing formula takes into account average global petroleum product prices and operating and distribution costs. Prices therefore move with world oil markets rather than staying fixed. The portal says the policy aims to encourage efficient fuel use, public transport and lower-emission vehicles. The portal page does not list current pump prices.

Official sources: u.ae: Energy and fuel prices

What is the poverty rate in the UAE?

No official poverty rate for the UAE was found on the sites of the UAE Government portal or the World Bank, which holds no national poverty headcount for the country, checked on 15 October 2026. The Federal Competitiveness and Statistics Centre's site blocked our automated check.

The UAE publishes no national poverty line. Support for low-income Emirati families is provided through federal and emirate social welfare programmes, which publish beneficiary numbers rather than a poverty rate.

Official sources: World Bank: poverty headcount at national poverty lines

How fast are prices rising in the United Arab Emirates?

The latest figure from the IMF, for 2025, is 1.3%. Since 2008 it has ranged from -2.1% (2020) to 12.3% (2008). Middle East, North Africa, Afghanistan & Pakistan median: 1.9%; the United Arab Emirates is 13th highest of 18. Worldwide: 127th of 165.

What is household spending per person in the United Arab Emirates?

According to the World Bank, household consumption per person in the United Arab Emirates was $22,906 in 2023. Since 2005 it has ranged from $16,840 (2012) to $38,678 (2007). Across Middle East, North Africa, Afghanistan & Pakistan the middle value was $3,283, and the United Arab Emirates placed 1st highest of 17. Of 156 countries with 2023 data, 17th highest.

What is the extreme poverty rate in the United Arab Emirates?

The latest figure from the World Bank, for 2018, is 0.0%. It is 5th highest of 5 in Middle East, North Africa, Afghanistan & Pakistan, where the median is 0.7%. Of 92 countries with 2018 data, 85th highest.

What is income inequality in the United Arab Emirates?

In 2018, the Gini index in the United Arab Emirates was 26.4, according to the World Bank. Middle East, North Africa, Afghanistan & Pakistan median: 29.6; the United Arab Emirates is 5th highest of 5. Worldwide: 86th of 92.

What is food insecurity in the United Arab Emirates?

The FAO puts moderate or severe food insecurity in the United Arab Emirates at 4.2% in 2024. It is 13th highest of 13 in Middle East, North Africa, Afghanistan & Pakistan, where the median is 24.2%. Worldwide: 125th of 135.