Cost of Living in
Saudi Arabia 2026

A single expatriate living in Riyadh in a studio apartment, using taxis, and cooking at home can expect to spend between SAR 4,500 and SAR 6,500 per month. This includes rent (SAR 2,200–3,500), food (SAR 450–650), transport (SAR 350–700), utilities and internet (SAR 600–900), and personal expenses. In Jeddah or Dammam, costs are typically 20–30% lower.

The dependent levy (also called the family levy or expat dependent fee) is a mandatory monthly fee charged to expatriates who sponsor family members in Saudi Arabia. As of 2026, the fee is SAR 400 per dependent per month (SAR 4,800 per year). It applies to spouses, children, and parents under your sponsorship. Newly arrived dependents get the first 90 days free. The levy is paid at Iqama renewal through Absher, online banking, or ATMs.

Saudi Arabia is generally considered moderately priced within the Gulf. It is cheaper than the UAE (especially Dubai and Abu Dhabi) and Qatar, but more expensive than Bahrain and Oman. Fuel is among the cheapest in the world (SAR 0.67/litre for 91 octane), groceries are affordable, and there is no income tax. Housing is the biggest expense, particularly in Riyadh. Overall, Saudi Arabia offers good value for expats — especially those on employer packages that include accommodation and transport.

No. Saudi Arabia does not levy personal income tax on individuals. Expatriates keep 100% of their salary. However, there are GOSI (General Organization for Social Insurance) contributions for expats in some sectors, and mandatory health insurance premiums. Employers must pay work permit fees (SAR 800/month per expat worker) — this cannot legally be deducted from the employee's salary.

International school fees vary widely based on curriculum and level. Indian/Pakistani (CBSE/Cambridge) schools cost SAR 1,000–2,500 per month per child. British and American curriculum schools range from SAR 2,000–3,750/month for primary and SAR 5,000–7,500/month for secondary. Annual tuition can reach SAR 60,000–90,000 at top schools. Registration fees, uniforms, transport, and extracurriculars add several thousand SAR per year. Many employer packages include a school allowance.

Electricity and water are subsidised in Saudi Arabia and relatively cheap compared to Europe or the US. A typical apartment utility bill ranges from SAR 400–650/month, though summer air-conditioning usage can push this higher. Fibre broadband costs SAR 150–250/month and offers speeds of 100 Mbps and above. Many residential compounds include water and sometimes electricity in the rent, which can reduce costs significantly.

Jeddah is generally around 20–25% cheaper than Riyadh overall. Rent is significantly lower — a 1BHK in Jeddah averages SAR 1,500–2,500 vs SAR 2,200–3,500 in Riyadh. Food, transport, and services are also marginally cheaper. Jeddah has a more relaxed coastal atmosphere and is closer to the Red Sea. However, Riyadh has more job opportunities, especially in government and finance, and a larger expat community with more international school choices.

Yes — Saudi Arabia is known for being a good place for expats to save money, primarily because there is no income tax and many employer packages include accommodation, transport, and school fees. A single expat on SAR 8,000/month living in a shared flat or company accommodation can realistically save SAR 3,000–4,500 per month. Families with good packages can save even more. The key expenses to watch are rent (if not provided), school fees, and the dependent levy.

Yes, for commuters in Riyadh the metro is a cost-effective option. A monthly pass costs SAR 140, far cheaper than daily Uber or taxi use. The metro network launched its full operations in late 2024 and covers major corridors across Riyadh. However, many expats still rely on cars or ride-hailing apps due to the distance between stations and residential areas. Those living near metro lines and working in central business districts can save SAR 200–500/month on transport.

Yes. Health insurance is mandatory for all expatriate workers and their dependents in Saudi Arabia. Employers are legally required to provide health insurance coverage for their employees. The minimum coverage criteria are set by the Council of Cooperative Health Insurance (CCHI). Expats without valid insurance cannot renew their Iqama. Most employer-provided plans cover outpatient, inpatient, and emergency care at private hospitals and clinics. Premium plans with wider networks and dental/optical coverage cost more but provide better access.