Living Large in Dubai: A Cautionary Tale of Overspending

I grew up in Cyprus and moved to the UAE in 2013 to study at New York University in Abu Dhabi. During my time there, I studied Arabic and immersed myself in the culture as much as possible. After graduation, I knew I wanted to stay in the region to continue that experience.  

I spent four years living in Abu Dhabi before moving to Dubai, where I worked for another four years. My initial role was in management consulting at a boutique firm, but I eventually transitioned to a position at Nestlé, where I worked for a couple of years before relocating to London.  

Dubai has a transient population—almost everyone is an expat. By the time I reached my fourth year in the city, most of my friends had moved on, and I felt the pull to explore somewhere new. Still, Dubai offers incredible work opportunities, and I plan to return someday. The projects are challenging, and the people are generous, eager to learn, and driven to seize opportunities.  

For entry-level roles, Dubai can be one of the most lucrative markets. At Nestlé in 2019, I was earning a strong tax-free salary, and over four years, I managed to save about 30% of my income. That said, I often found myself reflecting on how I could have saved more, especially given how easy it is to get swept into Dubai’s lifestyle.  

The Dubai Lifestyle: Luxurious and Expensive

One of the first things to note about Dubai is how affordable luxury can feel. Many people think they can save by moving to Dubai, given the tax-free salaries, but the cost of maintaining that lifestyle can quickly add up.  

For example, I remember booking a five-star hotel for $54 (200 dirhams) for a spontaneous treat. This kind of behavior was normal for me and many others. Yacht parties were another regular occurrence. In 2021, I attended a yacht party that cost 80 dirhams—around $22—and when I shared this with friends in London, they were shocked. However, to me, that felt like an affordable way to experience a luxurious day.  

Bottomless brunches were also a fixture of weekends. These would cost about $27 (100 dirhams) and were a staple social activity. Spending this kind of money on dining and social events wasn’t unusual in Dubai. Expectations for gifting and experiences also heightened these costs. You couldn’t leave the house without spending a significant amount, which isn’t the case in other cities like London.  

Comparing Costs: London vs. Dubai

In London, expenses can feel unaffordable, which often leads people to adopt a more frugal lifestyle. Social plans might mean a walk in the park or a low-key day outdoors rather than spending heavily on dinner or entertainment. In Dubai, the culture leans heavily into luxury, and spending money is almost normalized.  

I rented an apartment for 70,000 dirhams ($19,058) annually, shared with a flatmate. This surprised some of my colleagues at Nestlé, as having a flatmate isn’t common in Dubai. Additionally, I drove a used Nissan Juke, which would be considered a nice car in London. In Dubai, though, people would often ask, *"Why aren’t you driving an Audi?"* My response was simple: *"I’m 25. I’m not going to buy a brand-new Mercedes or Audi."*  

I didn’t spend much on clubbing, designer brands, or expensive clothes. While others frequently dropped a lot of money on nightlife and high-end goods, I prioritized saving.  

The Cultural Trap of Spending in Dubai

Despite having this mindset, I found that many of my peers—some of them very smart—lived paycheck to paycheck. This tendency is largely driven by how affordable luxury can feel in Dubai. The ease of accessing it becomes a way of life, and many find themselves in a constant cycle of spending.  

If you’re part of a family, it can be easier to control costs by spending more time at home. However, if you’re single or a young couple, the temptation to go out and spend money can be much harder to resist. Whether it's bottomless brunches, yacht parties, or other experiences, the culture of spending can quickly become the norm.  

I think families have a better shot at making life in Dubai affordable because they’re more accustomed to staying at home. However, for those in their 20s or early 30s, the lifestyle can quickly become far more expensive than anticipated.  

Final Thoughts

Dubai has its perks: tax-free salaries, exciting opportunities, and a vibrant, diverse culture. But the lifestyle here comes with its challenges, especially for young expats eager to experience everything the city has to offer. For anyone considering moving to Dubai, the key is to understand the costs, balance the allure of luxury with savings, and plan wisely.  

Dubai can be an incredible place to live—but only if you’re prepared for the financial realities of its glamorous lifestyle.