Where Foreigners Live in the UAE & the Reasons Why

Some interesting facts stand out regarding where foreigners live in the UAE. Expats in the United Arab Emirates (UAE) make up approximately 88% of the population. The government website says more than 200 nationalities live and work here, making this a mini version of the United Arab Emirates. Dubai and Abu Dhabi are the most popular emirates, and for good reasons.

Most residents live in urban centres that are economic, social, and cultural activity hubs. As of 2024, the UAE population is around 14 million, and the government continues to welcome skilled professionals, labourers, and entrepreneurs worldwide. This has prompted cities like Abu Dhabi and Dubai to undergo, rapid urbanisation driven by business opportunities, high living standards, and modern infrastructure.

Over decades, the government introduced residency reforms, including Golden Visas and long-term residency options, to attract and retain highly skilled foreign workers and investors. So, to understand more about the UAE, we looked at the population demographics and why most foreigners head to the cities of Dubai and Abu Dhabi.

Where Foreigners Live in the UAE

The UAE hosts one of the world’s largest expatriate populations thanks to its open border policies. Well-known sectors for foreign workers are finance, technology, healthcare, education, construction, hospitality, and domestic service.

• South Asians, including Indians, Pakistanis, Bangladeshis, and Sri Lankans, account for over 50% of the expatriate workforce.
• Arabs, like Egyptians, Syrians, Jordanians, and Lebanese, represent a significant portion of the business and government sectors.
• Westerners, including British, Americans, Canadians, and Europeans, predominantly work in senior management roles and specialised industries.
• Filipinos primarily work in healthcare, hospitality, and service sectors.

Population Density

Despite the large population, the low population density across the Emirates is due to vast desert landscapes. Most residents live in urban areas, while large parts of the country remain uninhabited. Dubai and Abu Dhabi are the most densely populated cities, with skyscrapers, bustling business districts, and residential neighbourhoods accommodating millions of people. Sharjah, Ajman, and Ras Al Khaimah are less crowded. The Empty Quarter (Rub al Khali), a large sand desert, covers much of the interior and has almost no permanent residents.

Female Population

The male-dominated population has men accounting for around 70% of the total because of the high number of male expatriate workers in construction, transportation, and other labour-intensive industries. However, among Emirati nationals, the government’s policies promote gender equality, with women holding positions in business, politics, and education leadership. Women’s workforce participation has increased significantly, and the UAE ranks among the most progressive countries for gender equality.

Indian Population

Roughly 3.5 million Indians live and work here. This accounts for more than 30% of residents. Indians have been integral to the development, contributing to trade, healthcare, construction, and finance. The majority, from the Kerala, Tamil Nadu, Punjab, and Gujarat Indian states, reside in Dubai, Abu Dhabi, and Sharjah. The UAE and India share strong economic ties, with bilateral trade reaching $100 billion annually, and Indians send billions of dollars back home yearly. However, as the UAE moves forward, it remains an attractive place for people from all levels of society, offering opportunities for work and business and an exceptional quality of life.

Major Expatriate Cities

There are seven emirates, each offering distinct living environments. However, Dubai and Abu Dhabi host the most foreigners.

1.1 Dubai

Dubai, the most well-known cosmopolitan city, is famous for its tallest buildings, massive retail outlets, and luxurious apartments. British communities and American ex-pats love daily life here thanks to the leisure and social scene. Dubai International Airport has a year-round flight schedule, making getting there easy.

Home to famous places like Ski Dubai and Dubai Marina Walk, this is an excellent option. Some expats say it is the safest city they have ever lived in. As the second largest emirate, covering 4114 square kilometres, Dubai often competes with Saudi Arabia to attract working professionals.

Popular areas include the Marina, which has waterfront living, upscale apartments, and a bustling nightlife scene. The Marina Walk has cafes, restaurants, and shops, making it popular with professionals, and is near Dubai Internet City. Jumeirah boasts beautiful beaches and luxury villas, while Downtown Dubai hosts the Burj Khalifa.

Arabian Ranches estate has a suburban feel and leisure facilities like tennis courts. With spacious villas, schools, and community centres, there are quieter lifestyles, and some expats opt for the Motor City nearby. Business Bay is popular with business people in finance, digital marketing, and corporate sectors.

1.2 Abu Dhabi

Abu Dhabi, the capital, offers a different pace of life. Known for cultural landmarks and green spaces, Abu Dhabi attracts many expats. Abu Dhabi’s Corniche neighbourhood, a beachfront area with parks, walking paths, and cycle tracks, is famous for scenic views and recreational activities. Al Reem Island offers contemporary apartments that attract families. Located slightly from the city centre, Khalifa City offers spacious villas and attracts families with quieter environments and easy proximity to schools. Yas Island boasts of excellent leisure activities, including Yas Marina Circuit and Waterworld.

Other Emirates

Sharjah: Sharjah offers affordable living costs, and family-friendly atmospheres. The Al Nahda area features affordable properties, and shopping centres, while Al Majaz offers waterfront living, parks and cultural attractions.

Ajman: The smallest emirate, Ajman, has become increasingly popular because of its affordable housing and relaxed lifestyles. This area features beautiful beaches, laid-back atmospheres, and easy access to recreational facilities.

Fujairah: Over on the eastern coast, Fujairah, bordered by the Hajar Mountains attracts foreigners seeking quieter lifestyles and natural beauty. Most expatriates work in tourism and hospitality.

Foreigners Love the Income and Tax Benefits

Some workers move to the United Arab Emirates (UAE) because of its high-income potential and tax-free environment. Unlike other countries where personal income is highly taxed, the UAE offers zero income tax, allowing workers to keep more of their salaries.

High-Income Potential: Technology, real estate, healthcare, and engineering professionals earn substantially higher wages than in their home countries. Attractive salary packages for skilled executives often include housing allowances, education allowances, health insurance, and annual flight tickets. These perks reduce living expenses, making it easier for them to save money and improve their financial situation.

Lack of Income Tax: The government generates revenue through corporate taxes on specific businesses, value-added tax (VAT) at 5%, and excise duties on goods like tobacco and sugary drinks. However, these indirect taxes are minimal compared to the income tax rates in countries like the UK, USA, Canada, or Germany, where tax rates can range from 20% to over 40%, depending on income brackets.

Higher Disposable Income and Cost of Living

Because there is no income tax, workers enjoy higher wages. This allows them to spend more on leisure activities, luxury goods, travel, and entertainment while still being able to save or invest their earnings.

While some aspects of life, like housing, school fees, and dining out, are expensive, the lack of tax offsets these costs for comfortable lifestyles while saving a lot of money. Additionally, consumer goods, electronics, and fuel prices are often lower than in Western countries because of government subsidies and lower import duties.

Business Opportunities and Investment Potential

Entrepreneurs and business owners flock here because of business-friendly environments, low taxation policies, and world-class infrastructure. Foreigners can establish businesses in free zones, where they enjoy 100% ownership, full repatriation of profits, and no corporate taxes for a certain period. This has made cities particularly attractive for startups, investors, and multinational companies looking to expand in the Middle East and beyond.

Why Foreigners Love Jumeirah in Dubai – The Iconic Developments

Dubai has several luxurious and sought-after neighbourhoods, and the Jumeirah brand is a top choice for working ex-pats. The area separates into three boroughs with specific developments. The Palm Jumeirah artificial island, shaped like a palm tree, extends into the Arabian Gulf. This exclusive area features ultra-luxury villas, beachfront apartments, and five-star resorts, attracting wealthy expats and investors.

The prestigious area promotes upscale residential communities, stunning beaches, and iconic landmarks. Unlike the high-rise developments in other parts of the city, Jumeirah features low-rise villas. Jumeirah Beach Residence (JBR) is a lively and sought-after neighbourhood popular among tourists. With stunning sea views, modern apartments across 40 towers, and a vibrant social scene, JBR suits those who enjoy active lifestyles.

Jumeirah Beach offers white sandy shores, and breathtaking views, that attract residents and tourists, providing relaxing escapes from the city’s hustle and bustle. Jumeirah Village Circle (JVC), a residential community offering affordable yet high-quality lifestyles, features villas, townhouses, and apartments for families and professionals looking for spacious homes at reasonable prices. Jumeirah Islands, an upscale residential community with artificial islands surrounded by lakes and lush greenery, features luxury villas offering privacy.

Lake Towers (JLT) is a dynamic mixed-use community that offers a balance between work, life, and leisure. With high-rise residential towers, office spaces, and scenic lakes, it is in a great location with easy access to Sheikh Zayed Road.

Gated UAE Communities for Ex-pats

Luxurious communities offer high-quality lifestyles, and several amenities, ensuring exclusive living environments with privacy and comfort among expats. Facilities often include 24/7 security, controlled access, and CCTV surveillance. Most communities feature swimming pools, parks, gyms, golf courses, shopping centres, play areas, nurseries, and schools. Unlike city-centre apartments, these communities provide larger homes, private gardens, and outdoor spaces.

Nicknamed “Beverly Hills”, the exclusive gated estate, Emirates Hills is home to high-net-worth expatriates, celebrities, and business tycoons. A favourite among Western expatriates, Arabian Ranches offers spacious villas, green landscapes, and a peaceful environment.

A prestigious community in Abu Dhabi, Al Raha Beach offers stunning sea views and waterfront properties. Yas Acres is a luxurious gated estate on Yas Island, offering modern villas with top-class amenities. JVC provides villas and apartments in a community-centric environment for expatriates seeking affordable yet quality living.

But What About the Cost of Living?

Housing Costs: Housing is the biggest expense. However, more affordable options are available in Sharjah, making it popular for budget-conscious expatriates. Dubai is the most expensive place for rent, ranging from 4,000 AED a month for a studio apartment to 15,000 for a one-bedroom apartment, 20,000 for a two-bedroom apartment, and up to 50,000 for a three- to four-bedroom villa.

Utility Bills: Utilities are costly, mainly during summer for air conditioning. Villas have higher electricity costs than apartments due to larger spaces and pools. For Electricity & Water, budget between 500 to 2,500 AED, Internet & TV Packages between 300 to 700 AED, and up to 300 for a Mobile Phone Plan.

Food & Grocery Costs: Grocery prices depend on whether you shop at local markets or international supermarkets like Carrefour, Waitrose, and Spinneys. Shopping at Lulu Hypermarket and Union Coop is cheaper than Waitrose or Spinneys. Dining at mid-range restaurants costs between 50 – 150 per person.

Transportation: There is affordable public transport, but some expats prefer driving. Public transport is cheaper than driving due to free metro zones, affordable taxis, and ride-sharing services like Careem and Uber. Petrol is currently between 2.50 and 3.50 AED.

Healthcare: Expect world-class healthcare, but private hospitals are expensive without insurance. Health Insurance (per year) ranges from 5,000 – 15,000 (depending on coverage.) Company-sponsored health insurance can save thousands on medical expenses if you are working.

Education: If you have children, schooling will be the most significant expense since public schools are only for UAE nationals. Expect to pay between 25,000 to 100,000 AED annually, depending on your school of choice.

Entertainment & Lifestyle: Some companies provide gym discounts and lifestyle perks as employee benefits. A Gym Membership costs 200 to 800 AED a month, and alcohol costs 40 to 80 AED.

Are there international UAE schools for families?

Most international schools sit in the Dubai–Sharjah–Ajman metropolitan area, with some more in Abu Dhabi. These schools offer various curricula, including the British, International Baccalaureate (IB), and American systems.

1. British Curriculum (IGCSE & A-Levels)

The UK’s Department for Education and the Knowledge and Human Development Authority (KHDA) or the Abu Dhabi Department of Education and Knowledge (ADEK) regulates schools following this curriculum. They include Early Years Foundation Stage (EYFS) for younger students, primary and secondary education leading to the General Certificate of Secondary Education (IGCSE), and advanced studies in A-Levels or the Baccalaureate Diploma Program (IBDP). Notable British establishments include Jumeirah College, Dubai British School, Brighton College Abu Dhabi, and Repton School.

2. International Baccalaureate (IB)

The IB curriculum has a rigorous academic structure and emphasises developing globally minded individuals. Widely recognised by universities worldwide, families who often move, choose this type of education including Primary Years Programme (PYP) for younger students, Middle Years Programme (MYP), and the Diploma Programme (DP) for pre-university education. Notable IB Schools include Dubai Academy, the Swiss Scientific School, the Raha School, and GEMS World Academy.

3. American Curriculum

The American curriculum follows the Common Core State Standards (CCSS) and culminates in the Advanced Placement (AP) program or a high school diploma recognised by American universities. College preparatory programs include Advanced Placement (AP) or the International Baccalaureate Diploma Program (IBDP). Notable American teaching establishments include the American School of Dubai, the Dubai American Academy, the American Community School, and the GEMS American Academy.

4. Other Curricula

In addition to the British, IB, and American curricula, other schools offering international programs include the Lycée Français Georges Pompidou, GEMS Modern Academy and Delhi Private School, the German International School, and the Ontario Canadian School.

Key Factors When Choosing a School

Curriculum and Accreditation: Choose a curriculum aligning with your child’s plans. Check for accreditations from recognised authorities like KHDA and ADEK or accreditation bodies like CIS (Council of International Schools).

Fees and Facilities: Fees vary depending on the curriculum, location, and facilities. British and IB education has higher costs, ranging from AED 30,000 to over AED 100,000 per year. Parents must buy uniforms, books, transport, and extracurricular activities. Top-tier schools offer science labs, sports fields, performing arts centres, swimming pools, music, and drama groups.

Teacher Qualifications and Student-Teacher Ratio: Look for experienced, certified teachers, preferably with global experience. Additionally, a low student-teacher ratio ensures personalised attention for students.

Location and Transport: Consider the distance from your home and the availability of transport services. Schools in central locations like Jumeirah, Al Barsha, and Saadiyat Island (Abu Dhabi) may have higher fees but offer greater convenience.

Often Asked Questions

Where do most UK expats live in Dubai?

This international city hosts large communities of Brits, with thousands of UK nationals living and working here. Most UK expats choose areas with luxury, family-friendly amenities, and strong communities. Some look at villas for rent yearly, while others buy property for future investments. Popular areas include Arabian ranches, which attract families because of the nearby JESS British curriculum school, Jumeirah golf estates and gated community, and the Springs and Meadows for affordable villas. The marina and downtown areas are popular, albeit average rent prices for a 3-bedroom apartment are expensive.

Who has the highest foreign population in the UAE?

With approximately 88-90% of the population made up of foreigners, Indians make up the largest group, followed by Pakistanis, Bangladeshis, Filipinos, and other nationalities. Many Indians live in Bur Dubai and Discovery Gardens,

How many UK nationals live in UAE?

As of 2024, approximately 240,000 British nationals live in the United Arab Emirates (UAE), with many living in Dubai. This marks a substantial increase from 2010 when around 100,000 British citizens were living here. However, this isn’t a newfound love affair because Brits have lived here since the 19th century.

Find Real Estate Properties for Sale

Our range of residential buildings for sale perfectly highlights why the UAE, and specifically Dubai, are a top investment and expat destination. Whether looking at a one-bedroom apartment, high-rise buildings, or a luxury villa with amazing views, the wide variety ensures you will find your dream home. Alternatively, call one of our agents today, who can give more regional information and answer all your questions about where foreigners live in the UAE.