UAE Sees a Massive Improvement in Quality of Life Index - 2022

UAE Residents to enjoy better quality of life in 2023

Dubai – The quality of life in United Arab Emirates (UAEs) residents has seen a drastic improvement. Factors like purchasing power, safety and healthcare witnessed the biggest improvement according to the latest data released for 2022by Numbeo. Being a provider of global databases for consumer prices and quality of life, Numbeo’s report showed a big jump in Abu Dhabi and Dubai’s global ranking in 2022.

Abu Dhabi’s ranking improved from 84th in 2022 to 24th this year. Similarly, Dubai’s ranking improved from 95 last year to 49 in 2022 on the Quality-of-Life index. Regionally, Abu Dhabi was ranked the top city for quality of life. The purchasing power of residents of both the cities improved substantially in the past 12 months. This is primarily because of a drop in the cost of living as a result of the strengthening of the UAE dirham against foreign currencies. Inflation is also low compared to other countries around the world.

The inflation reached 5.5% in the first nine months of 2022 and was one of the lowest in the world last year. Meanwhile, the health sub-index remained the same in Abu Dhabi and improved in Dubai, while the safety sub-index further improved in the UAE Capital. Similarly, the cost of living in Dubai dropped but remained steady in Abu Dhabi.

Impact of Increased Consumer Spending

As one of the top 10 market research companies in Dubai, we can affirm that UAE consumers are spending more on clothing, luxury goods, fuel and dining out. The increased UAE consumer spending is helped by the drop in petrol prices and removal of many Covid-related restrictions. A similar survey conducted by Dubai’s Department of Economy and Tourism (DET) revealed that more than half of Dubai’s residents (52%) dine-out up to three times per week. 

UAE Government Initiatives to Improve Quality Of Life

UAE is among the safest countries to live in and is highly welcoming to diverse cultures. Both Dubai and Abu Dhabi are rated highly in socio-economic, healthcare, education and recreational facilities. According to the International Monetary Fund (IMF) latest projections, UAE is set to become the fastest growing economy in the Gulf outpacing Saudi Arabia. This will further enhance UAE’s reputation as a thriving economy in times where other nations struggle due to negative implications of the Ukrainian war. 


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Author: Waqas Siddiqui
As a research consultant, I am passionate about supporting businesses in successfully expanding in the UAE and Gulf region. I can be reached at waqas@researchkonnection.com for research inquiries.