Dubai vs. Hong Kong Cost of Living
For a long time, Hong Kong dominated the list of best cities to live and work in. Many cities have vied for that title in recent years, but Dubai has succeeded in topping the list. Even though the cost of living in Dubai has increased over the years, due to the high rent expats have to pay for accommodations, the emirate is still cheaper to live in compared to Hong Kong.
Dubai’s popularity as a premier expat destination has increased dramatically owing to the high standard of living and affordable cost of living with respect to dining, entertainment and real estate.
Overall, Dubai offers greater job opportunities, a great quality of life with plenty to do in the way of culture, sports entertainment and more competitive salaries.
Moreover, Dubai’s diverse community ensures that it is easy to find people from your own background, making the transition to a new country a little easier.
Below, we take a look at the costs of basic amenities including food and rent as well as the cost of education, real estate and transport for both Hong Kong and Dubai.
Cost of Food and Dining
Dubai malls and stores are filled with the latest European (particularly British) brands to cater to the growing Western expat population, especially the increasing number of British expats who are choosing to call Dubai home.
Hence, it is not uncommon to find groceries and foods from back home in most supermarkets and hypermarkets in the emirate. These are, of course, more expensive than what you would buy them for back home. Ready availability still keeps prices competitive compared to Hong Kong, where expats can expect to spend a lot more for groceries from their home countries.
In terms of dining out, the cost of food in both metropolitan cities depends on where you choose to eat. A sit down dinner in a good restaurant can range from expensive to exorbitant in both cities, as many of the more fancy restaurants cater specifically to tourists.
However, local fare can be really cheap; in Hong Kong there are a ton of cheap street stalls where the food is delicious and very cheap – local favorites such as rice and noodle dishes can range from USD $3 to USD $5.
In Dubai, shawarmas are the local favorites – they are sandwiches available at many street side restaurants and make for a great budget meal or snack, priced at between USD $1.50 to USD $2.50.
Alcohol tends to be slightly cheaper in Hong Kong, where you can get a pint at an expat pub in the range of USD $3 to USD $7. Local bottled beers in restaurants are a better deal. In Dubai, however, nightclubs and restaurants need a license to serve alcohol, so a pint can cost you between USD $6 to USD $10.
Healthcare and Insurance
In both Hong Kong and Dubai, expats have two healthcare options: public healthcare and private medical care. In Hong Kong, the healthcare system is excellent as per international standards, and this system is available to all including expats.
Expats can opt for public healthcare at very reasonable costs. All you need to be eligible is a valid Hong Kong ID card. Public healthcare service fees are very low; a visit to an outpatient clinic is as low as HKD 100 (USD $13) with an additional HKD 10 (USD $1.30) for medication.
However, many expats complain about long wait times, queues and staff who do not speak much English. Hence, many expats opt for private health insurance, which can be expensive. Bear in mind that public healthcare does not generally cover dental care, and an additional plan is required.
In Dubai, expats can apply for a Health Card, which is very low cost and priced at AED 110 (USD $30) for a period of one year. The health card, however, entitles expats to very basic coverage and so most people prefer to take out additional private insurance.
This is generally more expensive and prices vary based on coverage. Generally, good private insurance will cost around AED 180 (USD $50) per month, but make sure to read the fine print to ensure what is included in the coverage.
Schools and Education
The cost of education in Hong Kong can be quite high compared to that in Dubai, particularly at the upper secondary stage, as there are far fewer international schools in Hong Kong (about 50) than in Dubai (over 150).
As the majority of Dubai’s population is expats, there is a wide range of international schools to choose from for all stages of study. These schools offer a wide range of curriculums including British, American, Canadian, Indian, Australian and Filipino.
In Hong Kong, local schools are mostly an option for locals or expats who speak a good amount of Cantonese; hence most expats stick to sending their children to an international Hong Kong school. Securing a place in these schools might require a long waiting period while school fees for international students can be quite hefty.
At primary level school fees for English Foundation Schools are around HK$ 58,000 (approx. AED 27,500) to HK$ 89,000 (approx. AED 42,000) for secondary schools, excluding an additional yearly deposit.
These are fairly competitive with the average price of primary and secondary education in Dubai, but at grade 12 level, price of tuition in a Hong Kong International school can be as high as HK$ 183,000 (approx. AED 86,000), whereas the average grade 12 price in Dubai is approximately AED 60,000 – 65,000.
Cost of Transportation
In general, the cost of transportation is quite a bit cheaper in Dubai than in Hong Kong. Like any other larger metropolitan city, Dubai has several modes of transportation including the Dubai Metro, cabs, cars and buses.
The low price of petrol in Dubai, however, makes driving a lot more attractive and keeps the cost of transportation much lower compared to Hong Kong, where 1 liter of petrol can cost four times as much.
Although traffic congestion, particularly during peak hours, is a part of life in Dubai, the emirate’s motorways are still far less congested than those in Hong Kong, resulting in less time spent traveling the same distance in the emirate. The government of Hong Kong discourages owning a car due to the high traffic congestions and increased pollution that it causes.
Real Estate
Property prices in Hong Kong are notoriously high as a result of land shortages. Hong Kong covers an area of about 1,100 km2 and is home to a population of over 7 million (a number consistently on the rise). It is; therefore, very expensive for expats to rent or buy property, which is a major consideration for many expats when deciding to make the move to a new country.
Although the cost of housing is rising everyday in Dubai, it is still more reasonable compared to Hong Kong. This is partly due to the fact that an increasing number of developments are in the pipeline in preparation for Expo 2020. Therefore, the supply of housing more than matches the current demand, making real estate rental and purchase rates more competitive.
There are several websites that provide comparisons on cost of living for various cities. A great online database of user-contributed information is Numbeo, which compares various factors from different cities across the world. This is a great starting point to get you thinking about salary negotiations, and what to expect when moving to a new city.