The most expensive cities for expat living

With inflation affecting nearly every part of the world , food and energy prices on the rise and a pent-up consumption and travel demand following Covid recovery, expats are facing higher daily expenses in a global job market that hasn’t been in its best shape. Which cities are facing the most challenges, and which are spared??

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Twice every year, asset manager Mercer studies the cost of living in 400 cities around the world, helping international companies set up compensation strategies for their expatriate employees. This annual cost of living survey evaluates the cost of 200 essential products and services in addition to factors such as currency fluctuations and inflation.

This year’s Cost of Living City Ranking for expats ranked 227 cities from the most expensive to live and work in to the least expensive. On top of the list is Hong Kong, followed by four Swiss cities; Zurich, Geneva, Basel and Bern. The ranking ends with Ankara, Turkey at the 227th spot.?

When it comes to Arab cities, Dubai topped the list – as the 31st most expensive city for expats globally – followed by Abu Dhabi (61), and Riyadh (103). Cairo and Rabat came towards the tail of the list regionally with spots 154 and 162 respectively.?

See how other Arab cities ranked :

Now, it might still be a good living if the quality of living matches the cost of living, right? Beyond the listing, the Mercer report highlighted the overall attractiveness of a city, taking into account factors such as safety, affordability of housing, sanitation, education standards and sustainability, which shows in the 4-quarter chart below:?

Earlier this month, another report by software and data company ECA International also ranked the most expensive cities around the world for expats, looking into neighborhoods where international workers usually live when comparing accommodation costs. Hong Kong still topped the list globally as the most expensive, followed by New York and Geneva.?

Cities in the Middle East have all climbed up in the ECA rankings this year when compared to last year, except for Beirut, which went down 131 spots, ranking 153rd in the 2022 index. Abu Dhabi had the 22nd spot, followed by Dubai (23), Riyadh (28) and Doha (35).

Why are rankings different?

Cost of living indexes compare consumer goods and services and average income in major geographical areas around the world. There’s no one official worldwide cost of living index, but different sources provide such data to help companies with an international workforce plan compensation, and consumers to calculate the direct impact to their ability to spend, save, plan for raising a family, retirement…etc.?

What do you think are the most important financial factors to take into account when deciding to move? Share your thoughts in the comments below.??

• Mercer’s cost of living report, a ranking of the most expensive cities for expats. Read more .?
• ECA International cost of living research. Read more .
• How is a Cost of Living Index Calculated? Read more .??