Oman ranks as the most affordable Gulf country in 2025 cost of living index

The UAE topped the Gulf Cooperation Council (GCC) countries in the 2025 Cost of Living Index, followed by Bahrain, Qatar, Saudi Arabia, Kuwait, and Oman. Oman was ranked as the most affordable GCC country.  

For the year 2025, the UAE has emerged as the highest-ranked country in the Gulf Cooperation Council (GCC) in terms of cost of living, followed by Bahrain, Qatar, Saudi Arabia, Kuwait, and Oman. Globally, the UAE secured the 30th position in the Cost of Living Index with an average score of 54.1, while Bahrain ranked 38th globally with a score of 48.3, placing it second in the Gulf and third in the Arab world.

Qatar ranked third in the Gulf, fourth in the Arab world, and 40th globally with 47.5 points, while Saudi Arabia was fourth in the Gulf, fifth in the Arab world, and 56th globally, scoring 41.9 points. Kuwait followed in fifth place in the Gulf, sixth in the Arab world, and 60th globally, with a score of 40.4 points.

Oman was ranked as the most affordable country in the Gulf region, placing sixth in the Gulf, seventh in the Arab world, and 62nd globally, with a score of 39.8 points in the 2025 Cost of Living Index.

Yemen ranked second in the Arab world in terms of high cost of living, followed by Palestine in eighth place, Lebanon in ninth and Somalia in tenth place.

Switzerland, the US Virgin Islands, Iceland, the Bahamas, Singapore, Hong Kong, Barbados, Norway, Papua New Guinea and Denmark topped the list of countries with the highest cost of living, respectively.

Pakistan, Libya, Egypt, India, Afghanistan, Madagascar, Bangladesh, Russia and Paraguay were found to be the cheapest countries to live in of a total of 139 countries included in the index.

The yearly index evaluates the cost of living in each country using five global criteria: average rent prices, overall cost of living including rent, average grocery prices, typical restaurant expenses, and the purchasing power of the local currency based on average net income.