The Arab world has many modern cities. These cities are growing very fast. They are becoming big centers for world trade and business.
This growth brings people from all over the world. Many people want to live and work in these successful cities.
This growth also makes these cities very expensive. The cost of living is rising quickly. This includes housing, food, and daily expenses. People need to know which cities cost the most. This helps them manage their money.
Numbeo, a trusted source for cost of living data, has released its 2025 list. This list names the Top 10 Most Expensive Cities in the Arab World. This article gives a close look at each city.
1. Dubai
Dubai is the most expensive city. It is in the United Arab Emirates (UAE). Dubai started as a small fishing and trading port. It grew fast after oil was found. Now, it is a global hub.
The city is famous for luxury and big projects. It has massive skyscrapers and huge malls. Many rich people and large companies choose Dubai. This demand makes it very costly.
Dubai’s economy is strong. It focuses on trade, finance, and tourism. High demand for homes makes rents very expensive. Daily goods and services also cost a lot. Living well in Dubai requires a high income.
2. Abu Dhabi
Abu Dhabi is the capital of the UAE. It is the second most expensive city. Abu Dhabi was a small settlement on an island. It became a wealthy center after its vast oil reserves were developed. The government spent a lot to build the city.
The city has world-class services and facilities. It is very modern and well-planned. Abu Dhabi is known for its government and cultural institutions.
Housing costs are very high in Abu Dhabi. This is a major expense for residents. Daily living costs are also high. The city offers a good life, but residents pay a high price for it.
3. Ras Al Khaimah
Ras Al Khaimah (RAK) is number three. It is also one of the seven emirates in the UAE. RAK has a long history of seafaring and trade. It developed more recently by focusing on industry and tourism, not just oil.
RAK is growing very fast. New resorts and businesses are attracting more people. This growth makes the city more expensive.
The cost of living is going up quickly. This includes increasing house prices and rising daily expenses. RAK is becoming more costly every year.
4. Sharjah
Sharjah is the fourth most expensive city. It is close to Dubai. Sharjah is historically important as a trading port. It became a cultural and educational center. Many people live in Sharjah and commute to work in Dubai.
This closeness to Dubai creates high demand for homes. Rental prices are very high because of this commuter population. Housing is the biggest cost for many families.
Sharjah offers a quieter life than Dubai. But it has many modern facilities. The high cost of living is a major factor for its residents.
5. Riyadh
Riyadh is the capital of Saudi Arabia. It is the fifth most expensive city. Riyadh was once a small walled city in the desert. It grew into a large modern capital with the discovery of oil. Now, the government is transforming the economy.
Riyadh is at the center of this economic change. New development projects attract many workers. Housing demand is very high, and this pushes up all rental prices.
The city is a major business hub. It provides many work opportunities. Living in Riyadh requires a substantial budget.
6. Doha
Doha is the capital of Qatar. It is the sixth most expensive city. Doha started as a fishing village. It grew rapidly after the discovery of natural gas. It became a modern city, especially after hosting major global events like the FIFA World Cup.
The city has modern architecture and a luxury feel. Housing and utility costs are quite expensive. This is especially true for central areas. Eating out and entertainment also add up to a high cost.
Doha is a global city. It brings in many international businesses and residents.
7. Beirut
Beirut is the capital of Lebanon. It is the seventh most expensive city. Beirut is an ancient port city. It has a very long history. It became a major financial and cultural center. The city has faced recent economic challenges.
Despite its economic problems, Beirut remains costly. High inflation and expensive imported goods drive up the prices. Finding affordable housing is very difficult.
Beirut has a lively culture and history. Housing prices are very high, especially in popular neighborhoods. Daily living costs remain a heavy burden for people.
8. Manama
Manama is the capital of Bahrain. It is the eighth most expensive city. Manama has been a key trading port for centuries. It developed into a financial hub for the Middle East. Its economy attracts many people from other countries.
The city offers a relaxed and modern lifestyle. Housing costs are a big reason why Manama is expensive. Other daily expenses also contribute to the high cost of living.
Manama is a diverse city. It serves as an important bridge for business between the East and West.
9. Al Khobar
Al Khobar is in Saudi Arabia. It is the ninth most expensive city. Al Khobar was a small port. It became important with the growth of the Saudi oil industry in the Eastern Province. Many oil company employees live here.
The city has a good standard of living. This attracts many highly paid workers. Strong housing demand keeps rental prices high. Costs for food and transportation are also significant.
Al Khobar offers many modern amenities to its residents.
10. Kuwait City
Kuwait City is the capital of Kuwait. It is the tenth most expensive city. The city started as a small trading and pearl diving community. It became very wealthy with the discovery of large oil reserves.
Kuwait City has modern buildings and a good infrastructure. Housing can be very expensive, particularly for people coming from abroad. Daily expenses are also high.
The city is a major commercial center. It plays a key role in the region’s economy.
