Cost of living in Saudi Arabia for expatriates

Before deciding to move for work or investment in Saudi Arabia, it is essential to understand the actual cost of living, including housing, residency and dependent fees, education, healthcare, and daily expenses. In this comprehensive guide, we review each item with figures, along with an estimated monthly budget table for singles and families, to help you plan your finances properly before relocating.

Housing in Saudi Arabia

Housing is the largest expense in any expat's budget in Saudi Arabia, often accounting for 30-40% of monthly income. Prices vary greatly depending on the city, type of property, and specific neighborhood, so it's important to understand the actual price ranges before searching for accommodation, and then compare between major cities to choose the most suitable destination for your budget.

Estimated Apartment Rentals in Saudi Arabia

Jeddah is relatively less expensive than Riyadh in terms of housing. One-bedroom apartments start from around 2,000 SAR per month in Jeddah, while prices are higher in Riyadh due to strong demand driven by the Regional Headquarters Program (RHQ) for international companies.

Read also: Properties for Sale in Saudi Arabia for Foreigners

Utility Bills (Electricity, Water, Internet)

In addition to rent, utility bills are a fixed monthly expense not to be underestimated. The combined cost of electricity, water, and internet is estimated at 400 to 1,200 SAR per month for a medium-sized family apartment, with a significant difference between winter and summer. Electricity consumption rises sharply during the summer months (June-September) due to heavy reliance on air conditioning, which can double the electricity bill compared to the milder winter months. It is advisable to allocate a flexible annual budget for this item instead of relying on a fixed monthly average.

Residency and Dependent Fees

When planning to move to Saudi Arabia, most expats tend to focus only on salary and housing, overlooking a recurring annual expense that can be a real burden if not accounted for in advance: residency and dependent fees. This is especially important for any expat planning to bring their spouse and children to live with them, as these accumulate as fixed monthly fees for each family member, along with additional fees related to travel outside the Kingdom. The main items are as follows:

• Dependent Fees: 400 SAR per month for each dependent (spouse and children registered on the worker's residency), i.e., 4,800 SAR per year per person, paid in advance when renewing residency. A family of three (wife and two children) pays about 14,400 SAR per year for this item alone.

• Exemptions: Holders of Premium Residency and their families, as well as children of Saudi mothers, are exempt from these fees.

• Exit and Re-Entry Visa: Required for any temporary travel outside the Kingdom, with fees starting from 200 SAR (single visa for two months) or 500 SAR (multiple for three months), with additional fees for each extra month.

• Foreign Worker Levy: Usually borne by the employer, ranging from 400 to 800 SAR per month per worker depending on the Saudization rate in the company, and may affect the terms of your employment offer.

⚠️ Important Note for Those Planning to Buy Property: Holders of Premium Residency (including the Property Owner Residency resulting from real estate ownership) are exempt from monthly dependent fees, making the total cost analysis of buying versus long-term regular residency more favorable than it may initially appear.

Read also: Does Buying Property in Saudi Arabia Grant Residency?

Education: The Biggest Expense for Families

For expat families with children, education is a crucial expense that requires careful financial planning from the start, as the differences between schools are vast and costs can multiply several times depending on the curriculum and available facilities. Here are the main price ranges:

• Private Schools (National Curriculum): Range between 12,000 and 25,000 SAR per year for primary school.

• International Schools (British, American, IB): Range between 30,000 and 75,000 SAR per year per student, depending on the curriculum, neighborhood, and school reputation.

• Additional Costs to Consider: One-time registration fees, school transportation (5,000-8,000 SAR per year for long distances), uniforms, books, and activities.

For a family with two children in a mid-range international school, the education item alone can reach 70,000-100,000 SAR per year, making it one of the largest expenses for expat families after housing. Choosing a school closer to home or opting for a national curriculum instead of an international one can significantly reduce this expense without necessarily sacrificing education quality.

Read also: Geographic Zones for Foreign Property Ownership in Saudi Arabia

Private Health Insurance

Health insurance is not optional for residents in Saudi Arabia; it is a mandatory requirement for annual residency renewal and should be included in the fixed budget rather than considered an emergency expense. The actual cost varies greatly depending on the level of coverage and any pre-existing medical conditions:

• Basic Packages: Start from about 1,000-1,500 SAR per month per person.

• Medium and Comprehensive Packages: Can reach 1,800-2,700 SAR per month (about 22,000-32,000 SAR per year), especially if there are chronic medical conditions requiring additional premiums.

• Practical Tip: Paying annually instead of monthly usually saves 4-8% of the premium (installment fees), and the network of approved hospitals is more important than just the premium value when comparing companies.

Employers usually provide basic insurance for employees, but expats may need additional or separate insurance for family members not covered by the employer's plan, which should be openly negotiated when accepting any job offer.

Transportation

Unlike many countries where expats rely entirely on public transport, the vast distances between neighborhoods in Saudi cities, along with the hot climate most of the year, make private cars the primary means of transportation. This reality is gradually changing with the expansion of public transport projects and the launch of the Riyadh Metro:

• Private Car: Still the main mode of transport for most people, with fuel costs around 1.8-2.33 SAR per liter, and monthly fuel costs for a small car ranging between 250 and 450 SAR, not including maintenance, insurance, and depreciation.

• Public Transport Alternatives: Riyadh Metro and other public transport options provide a significantly cheaper alternative for those living or working near stations, potentially eliminating the need for a second family car or even a primary car for single workers living near the metro line.

Choosing accommodation near major public transport hubs, if available in your city, can save hundreds of riyals monthly compared to full reliance on private cars.

Read also: Short-Term Rentals in Mecca and Medina

Food and Shopping

There are a wide range of options to suit all budgets, from local markets and budget stores to more expensive chains and international restaurants. As a general estimate (to be checked against updated price sources), a monthly grocery budget ranges from 800-1,500 SAR per person and 2,000-4,000 SAR for an average family, depending on shopping habits (local markets vs. luxury imported stores) and reliance on dining out.

Estimated Monthly Budget Table

⚠️ This table is purely an estimate for initial planning purposes and does not include entertainment, savings, or seasonal expenses such as insurance renewals or travel tickets. Use it as a starting point, not a final figure.

What Salary Do I Need to Live Well in Saudi Arabia?

Based on the above table, a single person needs a net salary of at least 6,000-8,000 SAR per month to comfortably cover basic expenses with a small margin for savings. For a family (couple and two children), the net household income should not be less than 20,000-25,000 SAR per month to cover education and healthcare without significant financial pressure, especially if the chosen school follows an international curriculum.

Is Buying Cheaper Than Renting in the Long Run?

For those planning to stay in Saudi Arabia for 5 years or more, buying property may be cheaper than continuous renting, especially with direct installment plans from developers without interest in many projects, now available to eligible non-Saudis under the Non-Saudi Property Ownership Law.

Read also: Apartments for Sale in Riyadh with Installments

Tips to Save on Living Costs in Saudi Arabia

After reviewing the budget items, here are the top practical tips experienced expats use to reduce their monthly expenses without sacrificing quality of life:

• Compare neighborhoods, not just cities: Differences within the same city between upscale and mid-range neighborhoods can be significant.

• Pay health and school insurance annually, not monthly to save on installment fees.

• Choose a school close to home to reduce school transportation costs (which alone can reach 8,000 SAR per year).

• Consider buying property early if staying long-term, and factor in the dependent fee exemption if you qualify for Property Owner Residency.

Whether you are planning to move to Saudi Arabia for work or long-term settlement, our team at Imtilak Global helps you understand the actual housing costs, compare renting and buying options, and calculate the opportunities associated with Property Owner Residency as part of your long-term budget.

Frequently Asked Questions About the Cost of Living in Saudi Arabia for Expats

What are the monthly dependent fees in Saudi Arabia?

400 SAR per month for each dependent (4,800 SAR per year), with exemptions for Premium Residency holders and their families.

How much does an international school cost per child?

Ranges from 30,000 to 75,000 SAR per year depending on the curriculum and school, not including transportation, uniforms, and activities.

What is the minimum reasonable salary to live in Saudi Arabia as a single person?

About 6,000-8,000 SAR per month net to comfortably cover basic expenses.

Is health insurance mandatory for residents?

Yes, it is a basic requirement for residency renewal, and its monthly cost ranges from 1,000 to 2,700 SAR depending on coverage level.

Is Jeddah cheaper than Riyadh?

Generally yes, especially in terms of housing, but the difference varies depending on the neighborhood and lifestyle.