Oman Tops Gulf as the Most Affordable Country in Cost of Living Index

Oman has been ranked as the most affordable country in the Gulf Cooperation Council (GCC) in the 2025 World Cost of Living Index, an annual report that compares living expenses globally against New York City, which is set as the reference point with a score of 100.

Kuwait Ranks Second in Affordability

Kuwait ranked as the second-most affordable Gulf country, securing the 80th position globally out of 139 countries and 12th in the Arab world. Kuwait scored 40.4 points, indicating that its overall cost of living is 40.4% of New York City’s.

Key highlights for Kuwait:

• Rent prices: 21.9% of New York’s costs.
• Overall living costs (including rent): 32.2%.
• Grocery prices: 33.7%.
• Restaurant prices: 40.8%.
• Purchasing power: The Kuwaiti dinar is 1.74 times stronger than the US dollar in New York.

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UAE: The Most Expensive Gulf Country in the 2025 Cost of Living Index

In the 2025 Cost of Living Index, the United Arab Emirates (UAE) has been ranked as the most expensive country in the Gulf Cooperation Council (GCC). It holds the 30th position globally, with a score of 54.1, indicating that the cost of living in the UAE is 54.1% of that in New York City.

Reasons Behind the UAE’s High Living Costs

1. High Rent Prices: One of the main factors contributing to the UAE’s high cost of living is the elevated cost of residential and commercial rents.
2. Expensive Goods and Services: Grocery prices, dining out, and public services in the UAE are notably higher compared to other Gulf nations.
3. Luxurious Lifestyle: As a global hub for business and tourism, the UAE’s cosmopolitan lifestyle significantly impacts living expenses.

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GCC Rankings for Cost of Living

1. Oman (Most affordable)
2. Kuwait
3. Saudi Arabia
4. Qatar
5. Bahrain
6. United Arab Emirates (UAE)

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Global Rankings for Cost of Living

• Cheapest countries to live in globally:
  Pakistan, Libya, Egypt, India, Afghanistan, Madagascar, Bangladesh, Russia, and Paraguay.
• Most expensive countries to live in globally:
  Switzerland, U.S. Virgin Islands, Iceland, Bahamas, Singapore, Hong Kong (China), Barbados, Norway, Papua New Guinea, and Denmark.

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Key Metrics in the Index

The World Cost of Living Index evaluates countries based on five criteria:

1. Average rental prices (residential and commercial).
2. Grocery prices.
3. Restaurant prices.
4. Purchasing power of the local currency.
5. Overall living costs, including rent.

Oman’s affordability is attributed to moderate rental costs, reasonable grocery and restaurant expenses, and a cost-effective lifestyle that aligns with purchasing power, making it an attractive destination for residents and expatriates alike.