Cost of Living in Dammam 2026: Complete Expat Budget Breakdown

Dammam Cost of Living Overview

Dammam, the capital of Saudi Arabia's Eastern Province, is the heart of the kingdom's oil and petrochemical industry and one of the most affordable major cities in the GCC. Together with neighboring Al Khobar and Dhahran, the Dammam Metropolitan Area forms the economic engine of Saudi Arabia's hydrocarbons sector, home to Saudi Aramco, SABIC, and dozens of international energy companies. For professionals in oil, gas, petrochemicals, and industrial engineering, the Eastern Province offers some of the best compensation packages in the region, combined with living costs that are the lowest of any major Saudi city.

Based on 2026 data, a single professional can live comfortably in Dammam on SAR 5,500-10,000 per month (approximately USD 1,470-2,670), while a family of four should budget SAR 14,000-24,000 per month (USD 3,730-6,400) excluding school fees. These figures represent genuinely affordable urban living — the combination of Saudi Arabia's zero income tax, low cost base, and generous employer packages in the energy sector makes Dammam one of the best cities in the world for building savings.

Dammam's cost of living index sits at approximately 38 compared to New York City's baseline of 100, making it the most affordable of the three major Saudi cities. The metropolitan area benefits from a strong industrial economy, excellent infrastructure connecting Dammam, Al Khobar, and Dhahran, and easy access to Bahrain via the King Fahd Causeway (a 25 km bridge) for weekend entertainment and dining.

Housing: The Biggest Expense

Housing in Dammam is remarkably affordable, with rents running 20-30% below Riyadh and 30-40% below Jeddah's Corniche areas. The metropolitan area offers diverse living options across three connected cities: Dammam for urban amenities, Al Khobar for waterfront living, and Dhahran for proximity to Saudi Aramco and its compounds.

Apartment Rental Prices (Monthly)

• Studio apartment (Dammam city center): SAR 1,200-2,200 — Central Dammam near the Corniche and commercial district. Older building stock but very affordable.
• 1-bedroom apartment (Al Faisaliyah/Al Shati): SAR 2,000-3,500 — Dammam's waterfront areas near the Corniche, with newer buildings and pleasant sea breezes.
• 1-bedroom apartment (Al Khobar, Corniche): SAR 2,500-4,500 — Al Khobar's Corniche is the premium residential strip of the Eastern Province, with modern towers, restaurants, and walkable infrastructure. The most expensive area in the metro.
• 2-bedroom apartment (Al Khobar, Al Rakah/Al Aqrabiyah): SAR 2,500-4,000 — Established residential areas in Al Khobar, near schools and shopping malls. Good value for families.
• 2-bedroom apartment (Dammam, Al Muraikabat): SAR 2,000-3,200 — Commercial-residential area with supermarkets, restaurants, and easy highway access. Budget-friendly and central.
• 3-bedroom apartment (Dhahran area): SAR 3,000-5,000 — Near Saudi Aramco and KFUPM. Residential areas with good schools and community amenities nearby.

Villa Rental Prices (Monthly)

• 3-bedroom villa (compound, Al Khobar): SAR 7,000-12,000 — Western-style gated compounds with pools, gyms, and social areas. Popular with oil-sector expat families.
• 3-bedroom standalone villa (Dammam suburbs): SAR 3,500-6,000 — Spacious family homes in developing residential areas. Excellent value for the space.
• 4-bedroom villa (compound, Dhahran): SAR 9,000-15,000 — Premium compounds near Saudi Aramco headquarters with extensive community facilities.
• 3-bedroom villa (Al Khobar, Half Moon Bay area): SAR 5,000-8,000 — Suburban villas near the beach area south of Al Khobar. Growing family community.

Rental Market Essentials

The Dammam metro area rental market has unique characteristics:

• Ejar platform: All contracts registered through Ejar, same as the rest of Saudi Arabia.
• Payment structure: Monthly and quarterly payments are common. Annual payments with discounts of 5-10% are available from many landlords.
• Security deposit: One to two months' rent. Refundable at lease end.
• Aramco compounds: Saudi Aramco operates its own residential compounds in Dhahran, Al Khobar, and Ras Tanura for employees and contractors. These are essentially self-contained communities with Western amenities, including restaurants, cinemas, sports facilities, and schools. Living in an Aramco compound is included in the employment package and is one of the most significant benefits of working for the company.
• Al Khobar vs. Dammam: Al Khobar is generally 20-30% more expensive than Dammam for equivalent housing, but offers better restaurants, the Corniche, and easier access to Bahrain. Many professionals live in Al Khobar and commute to Dammam or Dhahran (15-25 minutes).

Groceries and Dining

Grocery Costs

Dammam metro has excellent grocery options with some of the lowest prices in Saudi Arabia:

• Budget supermarkets (Othaim, Panda, Farm Superstores): SAR 500-800/month for a single person. Farm Superstores is a regional chain offering exceptional produce quality.
• Mid-range supermarkets (Tamimi, Danube): SAR 800-1,300/month. Tamimi is particularly well-represented in the Eastern Province.
• Premium supermarkets (LuLu, Carrefour): SAR 1,200-1,600/month.

Common item prices:

• Milk (1 liter): SAR 5-7
• Bread (loaf): SAR 2-6
• Rice (1 kg): SAR 4-10
• Chicken breast (1 kg): SAR 15-25
• Eggs (dozen): SAR 7-12
• Apples (1 kg): SAR 7-13
• Water (1.5L bottle): SAR 1-2

Dining Out

The Eastern Province dining scene is concentrated in Al Khobar, which has the best restaurant selection:

• Fast food meal: SAR 18-32
• Casual restaurant (per person): SAR 22-50
• Mid-range restaurant (2 people, 3 courses): SAR 120-250
• Fine dining (per person): SAR 150-400+
• Cafe coffee (specialty): SAR 14-22
• Local shawarma/plate: SAR 5-12
• Food delivery (average order): SAR 22-45 plus SAR 5-8 delivery fee

Budget tip: Dammam's Al Qatif area and Al Khobar's older neighborhoods offer exceptional value dining — full Indian, Yemeni, and Bahraini-style meals for SAR 8-18. For weekend variety, the King Fahd Causeway to Bahrain (30-minute drive) opens up an entirely different restaurant scene, including international dining and, for those who choose, establishments serving alcohol.

Transportation

The Dammam metro area is car-centric, with distances between Dammam, Al Khobar, and Dhahran requiring a vehicle:

Public Transport

• SAPTCO bus: Limited routes connecting Dammam, Al Khobar, and Dhahran. SAR 3-5 per ride. Frequency is low, and most residents rely on private transport.
• Intercity bus: SAPTCO connects Dammam to Riyadh (4 hours, SAR 80-120) and other Saudi cities.
• King Fahd Causeway: SAR 25 toll each way for the bridge to Bahrain. A popular weekend trip for Eastern Province residents.

Taxis and Ride-Hailing

• Taxi/Uber/Careem (10 km ride): SAR 10-20. Very affordable ride-hailing across the metro area.
• Dammam to Al Khobar: SAR 20-35 by ride-hailing (approximately 20 km).
• Airport transfer (King Fahd to Al Khobar): SAR 50-80. The airport is located between Dammam and Al Khobar.

Private Vehicle

• Fuel (per liter): SAR 2.18-2.33 (nationwide pricing).
• Car payment (mid-range sedan): SAR 1,200-2,500/month.
• Insurance: SAR 1,200-3,500/year.
• No road tolls: No toll system within the metro area.
• Parking: Largely free across the metro area, including most commercial zones. Some mall parking is timed but free.

Car ownership is essential in the Eastern Province. However, costs are minimal — no tolls, cheap fuel, free parking everywhere, and low insurance make the Dammam area one of the cheapest places in the world to operate a vehicle.

Utilities

Utility costs in Dammam are among the lowest in Saudi Arabia:

• Electricity (apartment): SAR 150-450/month. Summer bills can be high due to extreme heat (48-50 degrees), but the subsidized first tier keeps costs manageable.
• Water (apartment): SAR 30-100/month via NWC.
• Electricity + Water (villa): SAR 400-1,200/month combined.
• Internet (STC/Mobily/Zain): SAR 200-400/month for 100-500 Mbps fiber.
• Mobile phone plan: SAR 100-200/month.

Healthcare

The Eastern Province has excellent healthcare, boosted by Saudi Aramco's world-class medical facilities:

• Health insurance: Mandatory CCHI coverage. Oil-sector employers typically provide top-tier plans.
• GP consultation (private): SAR 120-300 per visit (insurance co-pay SAR 20-50).
• Specialist consultation: SAR 220-550 per visit.
• Dental checkup: SAR 120-280.
• Emergency room visit: SAR 150-900+ depending on treatment.

Saudi Aramco's Dhahran Health Center is one of the best-equipped medical facilities in the kingdom, available to Aramco employees. Other major hospitals include Saad Specialist Hospital, Al Mouwasat Hospital, and Dammam Medical Complex (government). Healthcare costs are among the lowest in the GCC for comparable quality.

Education

The Eastern Province has a growing international school sector:

• International schools (per year): SAR 15,000-45,000. British, American, and IB curricula available. Dhahran has some of the best schools, historically linked to the oil-sector community.
• Premium schools (per year): SAR 45,000-60,000 for top-tier institutions like ISG Dammam and Dhahran Ahliyya Schools.
• Indian curriculum schools (per year): SAR 5,000-14,000. Well-established with large enrollments.
• Nursery/preschool (per month): SAR 1,000-3,000.

Oil-sector employers routinely provide education allowances of SAR 25,000-60,000 per child, making premium schooling effectively free for many expat families.

Detailed Monthly Budget Scenarios

Scenario 1: Single Professional (Moderate Lifestyle)

Scenario 2: Couple (Comfortable Lifestyle)

Scenario 3: Family of Four (Comfortable Lifestyle)

Money-Saving Tips for Dammam

• Live in Dammam, socialize in Al Khobar: Housing in Dammam proper is 20-30% cheaper than Al Khobar. With a 15-20 minute drive between the two cities, you can enjoy Al Khobar's superior restaurant and Corniche scene while saving thousands on rent annually.
• Maximize employer benefits: Eastern Province oil-sector packages are among the most generous globally. Negotiate housing allowance, education grants, annual flights, and end-of-service gratuity aggressively — these can effectively double your compensation compared to base salary alone.
• Budget for Bahrain trips wisely: The King Fahd Causeway toll is SAR 25 each way. Limit trips to 2-3 per month and combine errands (shopping, dining) to maximize value. Thursday evenings and Fridays are peak traffic — travel mid-week if possible to avoid 1-2 hour waits at the border.
• Shop at Farm Superstores: This Eastern Province chain offers exceptional produce quality at competitive prices, often beating the larger national chains. Their weekend promotions are particularly good value.
• Use Half Moon Bay for free entertainment: The Half Moon Bay area south of Al Khobar offers beaches, camping, and water sports at minimal cost. Desert camping in the surrounding dunes is a popular free weekend activity during cooler months.
• Cook at home: With groceries 10-15% cheaper than Riyadh and ample fresh seafood from the Arabian Gulf, home cooking delivers exceptional savings. Preparing meals 5-6 nights per week saves SAR 1,000-1,800/month versus regular dining out.