Dubai has dropped on a cost of living index for 2018, from 19th place, down to 26th.

The study, by global consultancy company, Mercer, analysed a number of factors including renting.

Dubai was top of the list for the Middle East, but topped out by cities including (from one-six): Hong Kong, Tokyo, Zurich, Singapore, Seoul and Luanda in Angola.

Senior associate at Mercer, Rob Thissen says that it’s attributed in part to the value of the US dollar – which the dirham is pinned to

He says: “When I look at the list, particularly cities that are higher such as Hong Kong, Tokyo, Singapore and New York – these are all in typically stable markets with stable and strong currencies and some of those currencies have changed relative to the dirham in the last year. So that’s why Dubai and Abu Dhabi have moved down.”

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And Thissen says that the cost of living has not necessarily dropped in the UAE.

He says: “The cost of living is not going down here, it’s only going down when you compare to other cities.”

According to the study, a two-bedroom apartment in Dubai costs an average US$2,995

Compared to London – US$4,335 and New York – US$5,700.

Dubai was top of the list in the Middle East

Followed by:

• Abu Dhabi
• Riyadh
• Beirut