After moving here early last year, one thing became very clear. For all of Dubai’s branded glory – it wasn’t the excessive spending that was causing the holes in people’s pockets but the real culprits were rent and education.
Gulf News had a news item today stating that according to the Income and Expenditure Survey carried out by the Ministry of Economy found that 53% of income is spent on food and rent. I’d say about 50% is all rent and the remaining 3% is spent of food. Sure the prices of food stuff has risen in the past four years but they are nothing in comparison to the rise in rents.
@RegAthwal had an interesting tweet today.
“Expats in the UAE are thinking of sending their kids to boarding schools in the UK because it is cheaper now – Outsource your kids!!!”
An MBA costs anywhere from AED 80 k and above if you want a degree from a decent and known university. Education opportunities in UAE are also very limited. If parents are indeed considering sending their children abroad for better education, then who can blame them?
Even though the property prices have fallen(25% according to the newspapers) due to the economic recession, there has been no change in rents except that they have stopped increasing. The problem however remains – people have a hard time finding a house that fits their need within their budget.
If you’re living in UAE, what are your two biggest expenses that take a huge chunk out of your income? And yes, credit card bills is a valid answer :)