UAE: 9 things that cost more for residents in 2024

[Editor's Note: Initially published in February 2024, this article has been updated with new rate increases for other services, such as insurance.]

Have you been worried about your household expenditures overshooting your monthly budgets? You are not alone. Almost half of UAE residents say the 'cost of living' is the leading cause of stress, followed by personal and family financial concerns, according to a survey.

This concern is expected to persist as residents face escalating costs this year. Here's a look at the things that will add to your cost of living in 2024:

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1. Higher school fees

Parents in Dubai may need to review their budgets and allocate a higher portion to their children's education, as most schools have been given the green light to increase fees.

Private schools in Dubai would be allowed to hike fees by a maximum of 5.2 per cent, depending on their results in the latest annual inspections. Schools whose ratings dropped will not be eligible to apply for any fee increase.

For parents in the emirate, any hike in tuition fees would hurt their wallets amidst the rising cost of living.

2. Higher rents

Rents take the biggest bite out of residents' salary, and according to experts rents in Dubai will continue to rise in 2024. This year, prime residential areas will witness up to 20 per cent rental hike after a year of remarkable upswing estimated to be in the range of 23-30 per cent.

Property experts predict the trend is due to multiple reasons, including increased investor appetite, rising influx of professionals, population surge, and the city’s growing appeal as a haven for the wealthy.

The commonly preferred areas for apartments are Dubai Marina, Jumeirah Village Circle, Business Bay, Downtown Dubai, and Jumeirah Lake Towers. For villas, Dubai Hills, Al Barsha, Jumeirah, and Damac Hills are the most popular areas. Based on the demand and popularity, it is expected that these areas will command higher rental growth in the coming years.

Abu Dhabi’s real estate sector is advancing through a phase of strategic expansion and maturity and is poised to experience steady growth in 2024 with residential capital values expected to rise between 3% and 5%, according to ValuStrat.

Residential rents in the UAE capital are anticipated to experience modest increments in both villa and apartment sub-markets during 2024.

3. Remittance fees

Residents sending money home through money exchange houses will now have to pay higher service fees. Expatriates remitting money from the UAE will pay 15 per cent more, which equates to Dh2.50.

Fee hike will take place for remittance services provided through physical branches of the exchange houses. However, fees for mobile apps users will likely remain unchanged or even reduced to maintain digital competitiveness.

The UAE is one of the world's largest remittance markets, with most of the remittances flowing to India, Egypt, Pakistan, Bangladesh, the Philippines and other Asian and Middle Eastern countries.

4. Salik tolls

Motorists using key Dubai road will spend more on Salik from November 2024 as the transport authority announced new toll gates in the city – one located at Business Bay Crossing on Al Khail Road and the other one at Al Safa South on Sheikh Zayed Road between Al Meydan Street and Umm Al Sheif Street.

Each time a vehicle passes through a Salik gate, a toll fee of Dh4 is automatically deducted from the motorist’s prepaid account. The two new toll gates increases Salik’s total number of toll gates in Dubai from eight to ten.

The new toll gate will not only affect car owners' month expenses but also commuters using taxis. Every time a taxi passes under a Salik gate, Dh4 is added in the final fare. This additional expense will definitely put pressure on the monthly household budget.

5. Paid parking

Shoppers now enjoying free parking at Dubai Mall will have to pay for the service from July 1. Salik, the toll gate operator, will implement a barrier-free system for the paid parking service at the mall.

Six neighbourhoods in Dubai will also have more paid parking spaces — and residents will have to pay higher fees for the premium spots. The new developer-owned parking locations will be operational from 8am to 10pm, Monday to Saturday.

6. Car insurance

Vehicles were among those badly damaged when unprecedented rain wreaked havoc in the UAE in mid-April — and with many residents turning to insurance to get their flood-hit cars repaired, premiums have gone up.

Some insurance companies have increased premiums by up to 30 per cent, Khaleej Times has learnt.

• Dubai inflation sees moderate uptick