Dubai is no longer on the list of the 10 most expensive cities in the world, but this does not mean that living in this city has become cheaper.

According to the Global Wealth and Lifestyle Report 2026 by Julius Baer, Dubai has dropped 7 places compared to last year, now ranking 14th among the most expensive cities in the world.

The main reason for this change is the relative decline of the dirham compared to currencies like the euro and Swiss franc, not a decrease in the cost of living in the UAE.

In 2025, Dubai had made a significant leap to the 7th position in this ranking, alongside cities like London, Monaco, and Zurich. However, in the new ranking, the appreciation of European currencies has allowed cities like Zurich and Monaco to achieve higher positions.

Nevertheless, the cost of luxury living in Dubai remains high. In the previous report, car prices in this city had increased by 12.5% and residential property prices by 17.4%; a situation that indicates the continued demand from wealthy individuals for living and investing in Dubai.

Globally, the cost of maintaining a luxury lifestyle in 2026 has increased by about 10.2%. Jewelry prices have risen by 16.4% and luxury watches by 15.5%; increases that have been largely influenced by rising raw material prices, the cost of skilled labor, and the pricing of luxury brands.

Despite the drop in ranking, Dubai remains one of the key destinations for the world's wealthy. This city continues to attract international capital due to its low personal taxes, luxury homes, business opportunities, and its location between Asia and Europe.

Experts at Julius Baer have emphasized that Dubai's new ranking is more of a "change in currency calculations" rather than a sign of decreased attractiveness or demand.

In simple terms; Dubai has not become cheaper on the global scale, it is just that its European competitors are seen as more expensive due to currency fluctuations.
Source: Arabian Business