The cost of living in Saudi Arabia is an important factor to take into consideration when planning to relocate or undertake business activities in the country. With a population of 34 million people and a 17th position on the IMF’s list of the world’s largest economies, Saudi Arabia is the world’s most valuable state. As a result, it is different from much of the Middle East, where prices of common goods such as food, housing, healthcare, and transportation are considerably lower than what they are in Saudi Arabia.
Cost of Living Index (or COL), an international benchmark for measuring and comparing living costs in countries, regularly releases an extensive comparison index that measures expenses related to housing, food, fuel, transportation, health, and other important services in Saudi Arabia. According to the index, a person in Saudi Arabia needs on average 5,700 SAR per month for basic living expenses without housing (utilities, food, transportation, and health). This amount of money is above the global average (4,540 SAR). Consequently, Saudi Arabia is not considered to be an inexpensive place to live.
Moreover, the local prices are significantly higher than in other countries. For instance, the average rental price for two-bedroom apartments in the city centre in Riyadh is 3,737 SAR without utilities, which is expensive compared to similar properties in New York or other western cities. On the other hand, there are some commodities that are cheaper, such as petrol, which is currently sold at the low price of 0.26 SAR per litre. Certain food items are also relatively inexpensive, such as local fruits, vegetables, eggs, and dairy products.
In terms of wages, salaries in Saudi Arabia are generally sufficient to cover basic living costs, particularly because there is no local taxation. However, wages in major cities such as Riyadh, Jeddah, and Dammam tend to be higher than in the other areas of the country due to a vibrant local economy. In its latest report, the World Bank showed that the minimum monthly wage for unskilled and non-skilled workers in Saudi Arabia stands at 3,059 SAR.
All things considered, Saudi Arabia is not an inexpensive country to relocate to. It is a wealthy state with expensive commodities and services, and wages fall below the average in some areas of the country. As such, it is important to take the cost of living into account when making the decision to move to this country.
Is Saudi Arabia Affordable for Tourism?
When it comes to tourism, Saudi Arabia is slightly more affordable compared to many industrialized countries. Hotels, for instance, are much cheaper than in other cities; a 3-star hotel room in Riyadh costs an average of 153 SAR per night. Food is also less expensive; a 3-course meal in a mid-range restaurant costs around 103 SAR. Other significant savings can be seen in transportation, as the cost of petrol is much lower than in Europe. However, it is important to note that certain services can be expensive, such as taxi rides. Additionally, tourists should bear in mind that alcohol, which is illegal in the country, and pork products, which are not allowed in the country due to religious restrictions, should not be consumed within the country.
What All Adds to the Cost of Living in Saudi Arabia?
The cost of living in Saudi Arabia is determined by various elements, such as the prices of food, transportation, housing, health care, and other services. Food prices are higher in certain areas of the country due to higher transportation costs to deliver goods. Housing costs vary, depending on location and whether or not the property is rented or owned. Transportation is relatively inexpensive, particularly because petrol prices are low. However, taxi fares are significantly higher than in many major cities. Lastly, health care costs can be high, since international medical insurance plans are often necessary to access medical care in the country.
Does Saudi Arabia Offer Any Taxation Benefits?
Does Saudi Arabia Offer Any Taxation Benefits?
Unlike most other countries, Saudi Arabia does not levy taxes on the income of residents. Consequently, wages are higher in Saudi Arabia than they are in many industrialized countries with higher taxes. Additionally, the country has no sales tax, and no VAT, meaning that goods are significantly cheaper to purchase. In some cases, such as gasoline and construction materials, the country offers additional tax exemptions.
Is Saudi Arabia a Cheaper Place to Live Than Other Countries?
Compared to other countries, such as the United Kingdom, United States, or Japan, Saudi Arabia is considerably cheaper for day-to-day expenses. Food, transportation, and other services are significantly cheaper than they are in these countries. Additionally, wages are higher in Saudi Arabia, making the cost of living more affordable. On the other hand, certain luxury items and services, such as electronic goods, can be more expensive than those found in more developed countries. Overall, companies and individuals should take the advantages and disadvantages into account when considering relocating to Saudi Arabia.
What Benefits Are Offered to Expats Living in Saudi Arabia?
The government of Saudi Arabia offers many benefits for immigrants who move to the country. All permanent and short-term residents are entitled to free education and medical care. Additionally, housing and utility costs can be reduced for those who live in company-provided accommodation. Furthermore, certain communities in the country offer tax-free zones, which can further reduce living costs.
Are There Government Initiatives to Encourage Foreigners to Live in Saudi Arabia?
The government of Saudi Arabia has taken numerous measures to make relocation to the country more attractive. For instance, the government recently launched a healthcare reimbursement system that covers up to 100% of medical bills for low-income expats. Furthermore, expats are entitled to a regional tax exemption that can reduce living costs significantly. Finally, foreign companies and corporation are incentivized to hire expats through an attractive visa scheme.
What Are the Pros and Cons of Relocation to Saudi Arabia?
Relocating to Saudi Arabia can be a very attractive option for individuals and corporations, given its exemptions on certain services and tax incentives. The cost of living is also significantly lower than in many developed countries, and wages are relatively high. On the other hand, some commodities are more expensive than they are in other countries, and certain religious restrictions are imposed, which can make relocation daunting. Additionally, certain services are lacking, such as public transportation, which can further complicate matters in certain cities. Ultimately, all these factors should be taken into account when making the decision to relocate to Saudi Arabia.
