According to a poll released on Tuesday, the living cost in the UAE is getting more affordable for expats compared to 2020, as the country strives to recruit vital talent, additional remote employees, and freelancers.

As per the results of Mercer's Cost of Living study, Dubai has dropped 19 places from its rank as the 23rd most expensive city in 2020 to 42nd in 2021, whereas Abu Dhabi has dropped 17 places from 39th in 2020 to 56th in 2021.

The findings demonstrate the UAE's dedication to establishing measures that helped mitigate the impact of the COVID-19 epidemic, and its desire to recruit leading global talent to the UAE.

Although Dubai and Abu Dhabi are now less expensive for expats, improving the UAE's attractiveness and affordability to global talent because of lower real estate prices, deflation, and dollar fluctuations.

This renders the UAE more appealing from a pricing standpoint when in comparison to other global centres for technology and artistic minds such as London (19), San Francisco (26), Paris (34), and Dublin (40).

Vladimir Vrzhovski, Global Mobility Practice Lead, Middle East and Africa, commented on the survey's Middle East findings, saying, "A drive to facilitate remote and versatile working is boosting mobility and reinforcing the UAE's image as a preferred destination for expatriate employees."

The most noteworthy rise in the cost of living for foreigners in the Middle East and Africa as compared to 2020 in Beirut, which jumped 42 places to rank as the third most expensive city on a worldwide scale.

Lebanon's hyperinflation is the result of its currency failing following political and financial turmoil. Riyadh (29th) shot up two positions from the previous year among several other cities in the Middle East. N'Djamena (13), Lagos (19), and Libreville (20) are the most expensive cities in Africa for foreign employees.

“Living costs were always a factor in international mobility planning, but the pandemic has introduced a whole new layer of complexity, and long-term ramifications related to employee health and safety, working remotely and flexibility policies, and some other factors,” said Ilya Bonic, Career President and Head of Mercer Strategy. Asia is home to more than half of the top ten most expensive cities.

Ashgabat rose one spot in this year's poll, ranking it the most expensive city in Asia and the world for international employees. Hong Kong (2), Tokyo (4), Shanghai (6), Singapore (7), and Beijing (9) followed immediately.

Mumbai (78) is India's most costly city, but recently, it fell 18 spots in this year's list due to the comparatively weak Indian rupee in contrast to other cities in the listing.