Cost of Living in Saudi Arabia 2025: A Complete Guide
Explore your ultimate guide on Cost of Living in Saudi Arabia 2025!
Saudi Arabia has become a popular destination for expats due to its tax-free salaries, high living standards, and modern infrastructure. As the country undergoes significant economic transformation under Vision 2030, the cost of living is evolving.
Whether you’re considering moving for work, business, or long-term residence, understanding Saudi Arabia’s living expenses in 2025 is crucial.
This guide provides an in-depth look at housing costs, transportation, food prices, education, healthcare, travel, and savings potential across different cities.
Housing Costs in Saudi Arabia
Housing expenses form the largest part of any expat’s budget. Prices vary based on location, accommodation type, and whether you choose a compound, villa, or apartment.
Saudi ArabiaHousing in Saudi Arabia is modern, with plenty of options for expats. Most compounds offer facilities like pools, gyms, and security, making them ideal for families.
Apartments in city centers are convenient for professionals, while suburban housing offers more space at lower prices.
Saudi Arabia Housing Prices in 2025
- Riyadh: Rent for a one-bedroom apartment in the city center is around SAR 3,500 ($930) per month, while outside the city center, it’s SAR 2,500 ($665).
- Jeddah: Expect to pay SAR 3,000 ($800) per month in central areas and SAR 2,200 ($585) in suburban areas.
- Dammam & Khobar: Housing is more affordable, with one-bedroom apartments averaging SAR 2,200 ($585) – SAR 2,800 ($750).
Comparison of Housing Costs by Type
| Housing Type | Riyadh | Jeddah | Dammam/Khobar |
|---|---|---|---|
| 1-Bedroom Apartment (City Center) | SAR 3,500 ($930) | SAR 3,000 ($800) | SAR 2,800 ($750) |
| 1-Bedroom Apartment (Outside Center) | SAR 2,500 ($665) | SAR 2,200 ($585) | SAR 2,000 ($530) |
| 3-Bedroom Apartment (City Center) | SAR 7,500 ($2,000) | SAR 6,800 ($1,800) | SAR 5,500 ($1,470) |
| 3-Bedroom Apartment (Outside Center) | SAR 5,000 ($1,330) | SAR 4,500 ($1,200) | SAR 3,800 ($1,015) |
Factors Influencing Rent Prices in Saudi Arabia
- Compound Living: Expats often choose gated compounds with modern amenities, which cost 20-30% more than standalone apartments.
- Proximity to Business Districts: Rental costs are higher in Riyadh’s King Abdullah Financial District and Jeddah’s Corniche Area.
- Demand Fluctuations: Rental prices increase during peak business seasons and due to rising expat relocation trends.
✅ Tip: Negotiate long-term leases to get better rental deals and ask if utility costs are included in the rent.
Cost of Living in Saudi Arabia: Savings Potential & Financial Planning
Saudi Arabia’s tax-free income makes it a prime destination for those looking to save money while maintaining a high standard of living. Expats who budget wisely can retain a significant portion of their salary.
Average Monthly Savings Based on Salary
| Salary (SAR) | Estimated Savings (SAR) | Estimated Savings (USD) |
|---|---|---|
| 10,000 | 4,000+ | $1,065+ |
| 20,000 | 10,000+ | $2,665+ |
| 30,000 | 15,000+ | $4,000+ |
Expats earning above SAR 20,000 ($5,300) per month can typically save over 50% of their salary if housing is covered by their employer. Many use these savings for investments, family support, or global travel.
Financial Considerations
- 5% VAT on Goods & Services: Applies to most purchases except for rent and education fees.
- Banking & Money Transfers: International transfers may include fees, so using exchange services like Wise or Payoneer can reduce costs.
- Retirement Planning: Expats should explore offshore savings accounts and investment funds for long-term financial security.
✅ Tip: Open a Saudi bank account with savings benefits to maximize interest and avoid foreign transaction fees.
Cost of Living in Saudi Arabia: Is Saudi Affordable for Expats?
Saudi Arabia remains one of the most cost-effective destinations for expats, especially those receiving housing, education, and transport benefits from their employer.
While rental prices and school fees are high, savings potential is also significant due to zero income tax and lower food and fuel costs compared to Western countries.
For those planning to relocate, careful budgeting is essential. Choosing the right city, negotiating employment packages, and tracking expenses can help maintain a comfortable lifestyle while saving money.
With upcoming metro projects, growing digital services, and increasing expat-friendly policies, Saudi Arabia is set to remain a top choice for international professionals in 2025.
For updated cost trends, check platforms like Numbeo and Expatistan.
