Situated in the Middle East, the Kingdom of Saudi Arabia is the largest nation on the Arabian Peninsula and is renowned for its sizable oil and gas reserves. This has made the country one of the most powerful and influential economies in the world. But how expensive is Saudi Arabia really, and is it worth your money? This article will provide a comprehensive overview of the cost of living in Saudi Arabia.
1. What is the Currency Used in Saudi Arabia?
The official currency of Saudi Arabia is the Saudi Riyal (SAR), which is separated into 100 halalas. Currently, $1 USD will buy around SAR 3.75. Additionally, travelers can use US Dollar (USD) and Euro (EUR) notes with ease in the larger cities. Credit cards are widely accepted throughout the country, although some smaller shops may only accept cash payments.
2. Average Housing Costs in Saudi Arabia
The cost of living in Saudi Arabia depends on a variety of factors, including the city of residence, area size, and quality of accommodation. Furthermore, due to limited local demands, the cost of renting or buying a property in the Kingdom is very high. For example, a one bedroom apartment in Central Riyadh can cost up to SAR 6,725 per month, while a more modest apartment in the city centre will set you back around SAR 4,154.
3. Cost of Food in Saudi Arabia
Food is also relatively expensive in Saudi Arabia due to the country’s reliance on imported foods. A meal for two at a mid-range restaurant in Riyadh can cost from SAR 150 to 200, and a domestic beer at a bar in Riyadh can set you back at least SAR 30. Groceries in Saudi Arabia can also be costly, with a liter of milk averaging around SAR 6.23 and a dozen of eggs costing up to SAR 10.90.
4. Cost of Transportation in Saudi Arabia
Public transportation in Saudi Arabia is both affordable and reliable. In Riyadh, for example, a single-ride ticket on the bus network costs SAR 5.50, a monthly pass costs SAR 300, and the fare for a taxi is determined by a taxi meter. However, petrol prices are much higher compared to many other countries, with petrol costing around SAR 2.25 per liter. Car rental in Saudi Arabia is also on the expensive side, with a one-day rental of a sedan costing around SAR 400.
5. Cost of Leisure and Entertainment in Saudi Arabia
Leisure and entertainment activities in Saudi Arabia range from shopping and dining out to cinema visits and camping in the desert. Activities such as going to the cinema or the theatre cost around SAR 40-50 for adults and SAR 20-30 for children, whereas bowling and other activities at leisure centres can cost up to SAR 100. Desert camping trips, on the other hand, can cost around SAR 500-1000 for a two-day trip.
6. Cost of Recreation in Saudi Arabia
Additionally, Saudi Arabia offers a wide range of recreational activities, such as skiing, scuba diving, golfing, and horseback riding. A one-day ski package that includes equipment and a lesson can cost an average of SAR 250-300, while a single horseback riding lesson can cost up to SAR 250-300. Golf is also becoming increasingly popular in Saudi Arabia, with the cheapest course fee getting you eighteen holes for around SAR 500-700.
7. Cost of Clothing in Saudi Arabia
Finally, the cost of clothing in Saudi Arabia can vary widely, depending on where you shop. Shopping malls in the larger cities offer higher-end products with prices to match, while local markets are great for bargain hunters. In Riyadh, a pair of jeans can cost between SAR 150-200 in a mall or SAR 70-100 in a smaller shop. Additionally, T-shirts range in price from SAR 20-50 at discount shops, or SAR 70-150 at more expensive stores.
Additional Income Requirements for Expats
When it comes to living in Saudi Arabia, expats will require additional income to cover the cost of living and any additional leisure and entertainment activities. While salaries tend to be higher than in many other countries, it is important to factor in extra costs such as housing and transportation. Furthermore, expats will need to meet certain income requirements in order to gain residency in the Kingdom.
Taxation in Saudi ArabiaTaxation is a major source of revenue in Saudi Arabia with most individuals paying a flat rate. However, taxes differ depending on an individual’s income and whether they are a resident or non-resident. Generally, non-residents are charged a flat rate of 20%, but this can vary according to the type of income earned. Additionally, GST or Value Added Tax (VAT) may also apply in some cases.
Banking in Saudi Arabia
When it comes to banking in Saudi Arabia, there are a number of options available. Most banks offer checking and savings accounts, as well as online banking and services such as money transfers. Additionally, many banks offer credit card services with a variety of reward and loyalty programs. It is important to note, however, that most banks will require salary transfers to be made in the local Saudi Riyal currency in order to maintain accounts.
The Bottom Line
In conclusion, the cost of living in Saudi Arabia is generally higher than in other countries due to inflation and imports. That said, life in the Kingdom is still quite affordable, especially for expats. The cost of housing, food, and transportation are all quite reasonable, making it easy to enjoy a comfortable lifestyle in Saudi Arabia without breaking the bank.
