The overall cost of living in Saudi Arabia is similar to most European countries
ID: 1188821 • Letter: T
Question
The overall cost of living in Saudi Arabia is similar to most European countries as an expat. There are some significant differences since the general lack of tax makes a big difference on the cost of certain items such as cars. The cost of accommodation tends to be more expensive than in Europe.
Food and groceries
Some foods, especially imported foods are more expensive in the Kingdom. If you buy internationally recognized brands, you might pay more than in your home country. There are usually plenty of cheap locally and regionally produced alternatives that are of excellent quality.
As Saudi Arabia is a Muslim state, alcohol tends to be home-brewed. This means that if you find somewhere where it is available, prices and quality can vary greatly.
Electronic goods, such as televisions, DVD players, cameras and software are generally cheaper than in Europe, mainly because of lower import duties. Clothing can be expensive if you favourdesigner labels. This is standard in Saudi Arabia, although there’s little need for winter clothing.
Utilities
Utilities, such as electricity, water and gas, are subsidized to some extent by the regional governments. These governments own the services (except for bottled gas supplies) in order to provide inexpensive electricity and water in order to support the local population. Utilities are therefore cheaper than in most European countries.
At the height of summer, air-conditioning costs will escalate. Newcomers sometimes make the expensive mistake of keeping their air-conditioning on even whilst they’re out. This is unnecessary, as air-conditioning systems quickly reduce the temperature in your accommodation when switched on.
You should also budget for the cost of international telephone calls, however call costs are kept low by Saudi Arabia’s government. This is to encourage international business and investment in the region.
Your cost of living will obviously depend on your lifestyle. When you’re negotiating a work contract, your prospective employer will usually produce a document that details the cost of living in that country, which is useful in helping you to decide whether the proposed job is attractive financially or not.
Average costs
The average monthly expenses for a single person, couple and family with two children are shown below (the numbers in brackets relate to the notes that are below the table):
Monthly Costs ($/£)
Item
Single
Couple
Couple with 2 Children
Housing (1)
1,000/650
2,000/1,300
2,000/1,300
Food (2)
500/320
750/500
1,050/700
Utilities (3)
225/150
300/200
450/300
Leisure (4)
450/300
450/300
600/400
Transport (5)
100/65
150/100
150/100
Insurance (6)
100/65
150/100
225/150
Clothing (7)
250/165
500/330
800/525
Totals
2,625/1,715
4,300/2,830
5,325/3,475
Monthly Costs ($/£)
Item
Single
Couple
Couple with 2 Children
Housing (1)
1,000/650
2,000/1,300
2,000/1,300
Food (2)
500/320
750/500
1,050/700
Utilities (3)
225/150
300/200
450/300
Leisure (4)
450/300
450/300
600/400
Transport (5)
100/65
150/100
150/100
Insurance (6)
100/65
150/100
225/150
Clothing (7)
250/165
500/330
800/525
Totals
2,625/1,715
4,300/2,830
5,325/3,475
Explanation / Answer
1. Housing - If someone rents a house in Saudi Arabia -- Water, Television and electricity is subsidized, therefore paying all this separately is better than including this in rent. Air conditioning will be used only when one is at home. With people going to office, they spend only 7-8 hours at home and weekends. They will use air conditioners very less and hence, including that cost in rent and paying upfront is foolish.
On the other hand, all the above utilites are expensive in Europe and the rental charge includes all of that and is still cheaper than Saudi. Hence, it is economically wise to rent a house in Europe.
2. Food - Saudi Arabia - Local food is cheaper and are of excellent quality. The above mentioned expenses of food doesn't include luxury or alcohol. If i want to drink alcohol and eat imported food products, it would cost me a lot.
Europe - The cost comparatively is less. Alcohol and imported food products are not that expensive. It is cheaper in Europe
3. Utilities - Telephone charges are more in Europe. Electricity and water are expensive in Europe. Still, the overall cost is cheaper in Europe than Saudi Arabia.
4. Luxuries - These are cheaper in Saudi than Europe. Still it is cheaper in euros.
5. Transport and Insurance are cheaper in Europe
6. Clothing - As most the cltohing in Europe is summer clothing it should be cheaper. It may not cost so much to live in Saudi Arabia as one woulr require very less clothes.
Overall, it is economically wiser to live in Europe than in Saudi Arabia.
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