Hong Kong is world's most expensive for expats, Dubai tops Arab-wide

Hong Kong, Singapore, and Zurich marked the world's most expensive cities for international workers, Mercer's 2024 cost-of-living data indicated, citing factors such as pricey housing markets, high transportation costs, and rising goods and services prices.

In contrast, Islamabad, Lagos, and Abuja ranked the lowest in terms of living costs for expatriates. The report highlighted key global economic factors in recent years, including inflation rates, currency fluctuations, geopolitical and economic tensions, and local conflicts.

This annual ranking provides insights for informed decisions on global mobility, listing cities from most to least expensive by cost living. Mercer's survey compared costs of over 200 items, like eggs, olive oil, and espresso, in 226 cities.

The top five costliest cities kept the same positions in Mercer's rankings that they had last year, with Zurich, Geneva, Basel, and Bern among the top 10.

“The cost of housing is a major factor in the Cost-of-Living City Ranking. Between 2023 and 2024, there was a lot of volatility in this cost around the world, with housing rental prices varying significantly between cities,” read the report.

It added, “When housing costs are high, employees may need to spend a significant portion of their income on rent or mortgage payments, leaving them with less disposable income for other expenses.”

Dubai ranked first among Arab countries and the 15th globally in terms of cost of living for expats in 2024, up three places from last year. Abu Dhabi emerged as the 43rd most expensive city Arab-wide for the same year.