Dubai has risen in the rankings to become the most expensive city in the Middle East for international employees. It is now ranked 15th globally, up three places from 2023. According to Mercer's latest 'Cost of Living City Ranking' survey, the next most expensive city in the region is Tel Aviv, which has dropped eight places to 16th. Meanwhile, UAE's capital, Abu Dhabi, is ranked 43rd on the list.
What Is The Cost of Living City Ranking
Mercer’s annual Cost of Living City Ranking offers crucial insights for global mobility operations and international assignees. The ranking lists 261 cities worldwide, from the most to least expensive. Housing costs significantly impact the ranking, with global rental prices varying widely between 2023 and 2024. Dubai, for instance, saw a 21% increase in housing prices.
This rise is driven by a housing shortage, high construction costs, and land prices. High housing costs can reduce disposable income, causing financial stress and affecting employee morale. Organisations may need to increase compensation packages, straining financial resources.
Top Rankings
Hong Kong remains the most expensive city globally, followed by Singapore. The top five are completed by Swiss cities Zurich, Geneva, and Basel.
On the other end, Mercer ranks Abuja and Lagos in Nigeria, along with Islamabad in Pakistan, as the least expensive cities for international employees.