Once organized as separate sheikdoms, the seven emirates of the United Arab Emirates, Abu Dhabi, Ajman, Dubai, Fujairah, Ras Al-Khaimah, Sharjah and Umm Al-Quwain, are now a popular destination for expatriates. In fact, according to the Congressional Research Service, around 90% of the UAE’s almost 10 million population is made up of expatriates. While the majority of them are there to work in its open economy, many would like to retire there. The UAE boasts warm weather, glamor and new programs to encourage retirement there. But no country is perfect, and the UAE is no exception.
Consider working with a financial advisor if you want to retire abroad.
Retiring in the United Arab Emirates: Cost of Living and Housing
It is possible to live in the United Arab Emirates at a more affordable price than you’re now facing. According to Feb. 2023 data from Numbeo, a cost-of-living database, the UAE’s cost of living is 17.8% lower on average than in the United States. Looking at rent, it sits around 26.2% lower than rates in the U.S..
Dubai, the capital of the Emirate of Dubai, is currently the most populated city at over three million. Chicago in Illinois has a comparable population, according to the U.S. Census Bureau. Putting the two side by side, approximately $5,172 in Dubai would get you the same standard of living as $6,271 in Chicago.
That carries over into the price to rent or purchase an apartment. A one-bedroom apartment in the city center costs about $1,864.82 in Dubai, whereas it’s $2,000.35 in Chicago. Outside the center, that drops to $1,070.06 for Dubai, compared to Chicago’s $1,438.85. If you would rather buy, it’s approximately $374.08 and $222.55 per square foot inside and outside the city center, respectively, for Dubai, compared to $382.14 and $254.50 in Chicago.
As of Jan. 2023, the average U.S. retiree receives $1,825 per month in Social Security retirement benefits. The UAE is one of the more affordable locations to retire abroad on this allowance. However, that varies with the lifestyle you want as well as other details.
Retiring in the United Arab Emirates: Visas and Residence Permit
The UAE is taking measures to make it easier to retire in the country. The Department of Tourism and Commerce Marketing (Dubai Tourism) joined efforts with the General Directorate of Residency and Foreigners Affairs (GDFRA-Dubai) to create the Retire in Dubai program. It’s a globally geared program designed to allow long-term working expatriates, as well as other foreign retirees, to retire in the UAE .
Candidates receive a retirement visa, which is renewable every five years. To earn it, you can choose one of three requirements to prove your financial eligibility:
Show that you have a monthly income of or more than AED20,000 (around $5,400)
Prove that you have savings evaluated at AED1 million (around $272,000)
Or, own property in Dubai that is worth AED2 million (around $545,000)
The program is open to resident expatriates and foreign retirees over the age of 55 who hold valid UAE health insurance.
Source: https://smartasset.com/retirement/how-to-retire-in-the-united-arab-emirates