Dubai has risen three places in the Mercer's annual city ranking, which is compiled to offer insights to those making decisions on global mobility operations and international assignees.
According to Mercer's 2024 Cost of Living Index, Hong Kong, Singapore and Zurich are currently the costliest cities for international workers, retaining the same positions they held last year.
Likewise, the cities that ranked the lowest for living costs are Islamabad, Lagos and Abuja.
On a regional level, Dubai became the most expensive place for international employees to live in the Middle East.
Abu Dhabi is ranked 43rd globally, Riyadh came in at 90th spot and Jeddah in 97th position.
Mercer's Career and Workforce Products Business Leader for the MENA region Ted Raffoul explained to ARN that the main factor contributing to Dubai's rise this year is rental price increases.
"Dubai is the city with the fastest rent increase over the last annual period of all major cities in the world," said Raffoul.
"If you look at the other cities that grew that high as well, you're talking Hong Kong, you're talking Singapore, generally there's a lack of space in those cities, there's always been a consistent problem when it comes to supply.
"You could speculate there's a similar problem in Dubai as well but there's also massive demand in Dubai, I think that's potentially where demand is outpacing supply," he explained.
In terms of what Mercer has measured as a typical 'basket of goods', a dozen eggs has increased 7 per cent in Dubai, year-on-year; olive oil 6 per cent and a cup of coffee 1.6 per cent.
Petrol prices have decreased 7.5 per cent in the last year, however, the price of a haircut has dropped 1.2 per cent, and the price of a pair of jeans has remained unchanged.
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