Saudi Arabia, one of the wealthiest countries in the Middle East, offers a unique and diverse living experience for expatriates. As one of the largest and most developed economies in the region, it presents both opportunities and challenges for newcomers. In this guide, we will see overall cost of living in Saudi Arabia. We will break down the various expenses that expats can expect when living in the Kingdom, including housing, transportation, food, healthcare, and other essentials. With careful budgeting, expats can lead a comfortable life in Saudi Arabia.
Saudi Arabia’s Economy
Saudi Arabia is the richest country in the Gulf Cooperation Council (GCC) and boasts a GDP of around US$1.1 trillion in 2024. The economy is expected to grow steadily in the coming years, with a 3.3% growth forecasted for 2025. While the high GDP figures sound promising, it’s important to note that disposable income is not equally distributed among the population. In 2025, the average disposable income per household is projected to be approximately US$18,260 annually.
Despite these figures, the country’s inflation rate is relatively low. In 2025, inflation is expected to be just 1.7%, which is below the GCC average of 3.4%, making Saudi Arabia an attractive destination for expatriates in terms of financial stability.
Cost of Living in Saudi Arabia 2025
While specific figures for 2025 haven’t yet been fully detailed, there are existing estimates that give us a good idea of what the average expat can expect to pay. Statista estimates that the average household expenses in Saudi Arabia will be around SAR 4,159 per month in 2024. Let’s break down key areas that contribute to your cost of living:
Food and Groceries
Food is one of the significant expenses for expats in Saudi Arabia. In 2025, it’s estimated that a typical household will spend about SAR 747 per person per month on groceries.
Housing and Rent
Housing costs are significant in major cities like Riyadh and Jeddah but more affordable in smaller cities. The average rent in Saudi Arabia varies depending on location:
- In Riyadh, the rent for a house ranges from SAR 5,000 to SAR 30,000 per month, while apartments range from SAR 2,917 to SAR 20,833 per month.
- In Jeddah, rental prices for houses can go from SAR 3,333 to SAR 10,000 per month.
For those looking for a more budget-friendly option, cities like Abha and Ha’il offer cheaper rents, with prices starting from as low as SAR 1,375 per month for a city-center apartment.
Utilities and Living Costs
The Saudi government partially subsidizes utilities, making water, gas, and electricity relatively affordable compared to other countries. On average, expats can expect to pay between SAR 365 and SAR 580 per month for utilities, which include electricity, water, and gas. However, during the summer months, air conditioning usage can increase utility bills significantly.
For a 26.5-liter LPG gas cylinder, expect to pay around SAR 150–290, depending on the type of cylinder you choose.
Healthcare in Saudi Arabia
Healthcare in Saudi Arabia is of high quality, but expats are required to have private health insurance. On average, healthcare expenses are around SAR 63 per month per person in 2025. Employers typically provide health insurance as part of the benefits package, but the extent of coverage can vary, so expats may wish to purchase additional insurance for extra peace of mind.
Transportation
Transportation costs can be high, particularly for those who drive. The average monthly transportation cost in Saudi Arabia is expected to be SAR 638 in 2025. While public transportation is available, it’s not as developed as in some other countries, and cars remain the primary mode of transport.
If you own a car, be prepared for the following:
- Car insurance: SAR 125–667 per month for mandatory third-party liability.
- Fuel: Gasoline costs SAR 2.33 per liter, making it relatively affordable to drive.
- Maintenance: Regular vehicle maintenance costs vary between SAR 500 and SAR 1,500 depending on the vehicle.
Public transport options include buses and limited metro services. A single city bus ride costs between SAR 3.45 and SAR 11.50, with an economy train ticket from Riyadh to Dammam priced at around SAR 110–135.
Internet and Communication
In Saudi Arabia, the cost of internet and communication services is also an important consideration. The average monthly cost for internet and telecom services in 2025 is estimated to be SAR 225 per person. Internet packages typically range from SAR 159 per month for OSN Global TV to SAR 97.75 for a prepaid mobile plan through the Saudi Telecom Company (STC).
Clothing and Footwear
Clothing expenses in Saudi Arabia are on par with international standards, with designer items being more expensive due to import taxes. On average, expats will spend SAR 141 per month on clothing.
Leisure and Entertainment
Leisure activities, including dining out, cinema tickets, and fitness clubs, are widely available across Saudi Arabia. Entertainment costs can vary depending on lifestyle preferences.
Education and Childcare
Education and childcare costs are another consideration for expat families. International schools in Saudi Arabia can be expensive, with fees ranging from SAR 20,000 to SAR 60,000 per year, depending on the school and grade level. However, the quality of education is generally high, with many schools offering international curriculums.
Financial Support and Saving Tips
Many expats receive financial support in the form of allowances or housing subsidies from their employers, which can help offset the high cost of living in cities like Riyadh and Jeddah. To save money in Saudi Arabia, it’s recommended to:
- Look for housing in more affordable cities.
- Take advantage of public transportation.
- Budget wisely for food and groceries.
Comparison to Other Countries
Compared to other global cities, the cost of living in Saudi Arabia is relatively moderate. Housing, transportation, and food costs tend to be more affordable than in major cities like London, New York, or Paris, making it an attractive option for expats looking to save money while living comfortably.
Conclusion
The cost of living in Saudi Arabia can vary greatly depending on your lifestyle and the city you choose to live in. While housing and transportation can be expensive, other everyday expenses like food, utilities, and entertainment are relatively affordable. With a solid understanding of the costs involved, expats can make informed decisions about how to manage their finances and enjoy a comfortable life in the Kingdom.
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