Abu DhAbi is 49th most expensive city

DUBAI — Abu Dhabi’s ranking among the world’s costly increased in 2019 as cost of living increased in the UAE capital, according to Economist Intelligence Unit’s latest report.

Abu Dhabi has been ranked as 49th most expensive city in the world, moving up 13 places from the previous year’s ranking. The emirate was also among the top 10 biggest movers up the ranking in the past 12 months.

In January, data services provider Numbeo disclosed that the cost of living increased in Abu Dhabi and the emirate’s ranking jumped from 299 in 2018 to 185 in 2019 in the costliest cities. Though, the overall cost of living index and other sub-indices such as rents, groceries and restaurant prices dropped, but the local purchasing power of the emirate’s residents also plunged substantially from 131 to 106.6 year-on-year.

According to EIU’s worldwide cost of living 2019 index, Riyadh and Muscat also saw cost of living going up in 2018 as both the Gulf capital were among the top 10 biggest movers up in the ranking for the year. Saudi capital saw its ranking jumping by 12 places to 105 while Oman’s capital was ranked 92nd most expensive city, an increase of 15 places.

Though rentals — which make up a large component of consumer price index — have been consistently going down in Abu Dhabi, transportation costs and imposition of five per cent valueadded tax (VAT) were the main reasons for the surge in the cost of living last year.