Cost of Living in Riyadh 2026: Complete Expat Budget Breakdown

Riyadh Cost of Living Overview

Riyadh is undergoing a dramatic transformation under Saudi Arabia's Vision 2030, attracting a wave of international professionals to what is rapidly becoming one of the most dynamic cities in the Middle East. As the capital and largest city of Saudi Arabia, Riyadh offers significantly lower living costs than Dubai or Abu Dhabi, combined with the same zero personal income tax benefit, making it one of the best cities in the GCC for maximizing savings.

Based on 2026 data, a single professional can live comfortably in Riyadh on SAR 8,000-14,000 per month (approximately USD 2,130-3,730), while a family of four should budget SAR 18,000-30,000 per month (USD 4,800-8,000) excluding school fees. These figures reflect a moderate lifestyle — Riyadh can be remarkably affordable for budget-conscious residents, particularly in housing.

Riyadh's cost of living index sits at approximately 45 compared to New York City's baseline of 100, making it one of the most affordable major capitals in the GCC. Housing is the single biggest advantage: comparable apartments cost 30-50% less than equivalent properties in Dubai. However, the entertainment scene is still developing, and car ownership is essentially mandatory, which are factors to weigh against the lower baseline costs.

Housing: The Biggest Expense

Housing in Riyadh is significantly more affordable than in Dubai or Abu Dhabi, and represents the largest area of savings for expats. The rental market has tightened somewhat due to Vision 2030-driven population growth, particularly in the upscale northern districts, but remains far below UAE pricing levels.

Apartment Rental Prices (Monthly)

• Studio apartment (Al Olaya/Tahlia): SAR 2,000-4,000 — The central commercial and diplomatic district. Modern towers and good walkability by Riyadh standards.
• 1-bedroom apartment (Hittin/An Nakheel): SAR 3,500-6,000 — Premium northern residential areas favored by Western expats. Modern compounds and standalone apartments with good security.
• 1-bedroom apartment (Al Malqa/Al Narjis): SAR 2,500-4,500 — Growing northern suburbs with newer buildings. Excellent value for modern apartments and growing amenities.
• 2-bedroom apartment (KAFD area): SAR 4,000-7,000 — Near the King Abdullah Financial District, Riyadh's new business hub. Premium pricing for the newest buildings.
• 2-bedroom apartment (Al Rawdah/Al Sahafah): SAR 3,000-5,000 — Mid-range areas with a mix of older and newer stock. Good access to Ring Road and northern highway.
• 3-bedroom apartment (Al Wurud/Al Izdihar): SAR 3,500-6,000 — Established central districts with good connectivity, near hospitals and schools.

Villa Rental Prices (Monthly)

• 3-bedroom villa (compound, Hittin): SAR 10,000-15,000 — Western-style gated compounds with shared pools, gyms, and social facilities. Very popular with expat families for the community lifestyle and security.
• 3-bedroom standalone villa (An Nakheel): SAR 6,000-10,000 — Independent villas outside compounds. More space and privacy, but without community amenities.
• 4-bedroom villa (compound, Diplomatic Quarter): SAR 12,000-18,000 — The most prestigious expat area, near embassies with extensive green spaces, restaurants, and a golf course.
• 3-bedroom villa (Al Yasmin/Al Arid): SAR 5,000-8,000 — Northern suburbs offering newer villa stock at competitive prices, popular with growing families.

Rental Market Essentials

Riyadh's rental market operates differently from the UAE's cheque-based system:

• Ejar platform: All tenancy contracts must be registered on the Ejar platform operated by the Ministry of Housing. This is mandatory for iqama (residency permit) processing and government services.
• Payment structure: Rent is increasingly paid monthly or quarterly via bank transfer, though annual payments still occur. Some landlords offer 2-4 cheque options.
• Security deposit: Typically one month's rent, sometimes two months for premium properties.
• Broker fee: Usually 2.5% of annual rent from each party (tenant and landlord), totaling 5%. Negotiable for higher-value leases.
• Compound vs. standalone: Compounds offer a more familiar Western lifestyle with mixed-gender socializing, swimming pools, and restaurants. They cost 20-40% more than comparable standalone properties but are highly valued by families new to Saudi Arabia.
• Rent increases: Not formally capped by regulation, but the competitive market and Ejar transparency keep increases moderate. Always benchmark against comparable Ejar listings before renewal.

Groceries and Dining

Grocery Costs

Saudi Arabia subsidizes many food staples, and Riyadh benefits from a competitive supermarket market:

• Budget supermarkets (Panda, Othaim, BinDawood): SAR 600-1,000/month for a single person. Excellent selection of rice, bread, chicken, and fresh produce at subsidized or competitive prices.
• Mid-range supermarkets (Tamimi/Danube): SAR 1,000-1,500/month. Wide selection of international products, organic options, and imported goods. Tamimi is considered the best mid-range option.
• Premium supermarkets (Carrefour Gourmet, LuLu Hypermarket): SAR 1,500-2,000/month. Full range of imported Western and Asian products.

Common item prices:

• Milk (1 liter): SAR 5-7
• Bread (loaf): SAR 3-8
• Rice (1 kg): SAR 5-12
• Chicken breast (1 kg): SAR 18-28
• Eggs (dozen): SAR 8-14
• Apples (1 kg): SAR 8-15
• Water (1.5L bottle): SAR 1-2

Dining Out

Riyadh's dining scene has expanded dramatically since the entertainment reforms of 2019-2023:

• Fast food meal: SAR 20-35
• Casual restaurant (per person): SAR 30-60
• Mid-range restaurant (2 people, 3 courses): SAR 150-300
• Fine dining (per person): SAR 200-500+
• Cafe coffee (specialty): SAR 15-25
• Local shawarma/plate: SAR 5-15
• Food delivery (average order): SAR 30-50 plus SAR 5-10 delivery fee

Budget tip: Riyadh has an exceptional value dining scene. Restaurants along Olaya Street, in the Bathaa district, and around Al Malaz serve outstanding Yemeni, Indian, Pakistani, and traditional Saudi dishes for SAR 10-25 per meal. Saudi Arabia's coffee culture is also thriving — independent roasters in Hittin and An Nakheel areas offer world-class specialty coffee for SAR 15-20, comparable to third-wave shops in any global city.

Transportation

Riyadh has historically been entirely car-dependent, but the opening of the Riyadh Metro in 2024-2025 is transforming the city's transportation landscape:

Public Transport

• Riyadh Metro: Six lines covering 176 stations across 176 km. Single ride: SAR 4-7 depending on distance. Monthly pass: SAR 200-280. The metro is modern, air-conditioned, and connects major residential, commercial, and entertainment hubs including KAFD, the Diplomatic Quarter, King Saud University, and Olaya.
• Riyadh Bus (SAPTCO): Complementary bus network being expanded alongside the metro. Single ride: SAR 3-5 using the Darb smart card (same as metro).
• Intercity bus (Riyadh to Jeddah/Dammam): SAR 100-200 one way via SAPTCO. Comfortable, air-conditioned coaches.

Taxis and Ride-Hailing

• Taxi (10 km ride): SAR 15-30. Metered taxis are available but ride-hailing is far more popular.
• Uber/Careem: Dominant mode of transport before the metro. Very affordable compared to UAE — a 10 km ride costs SAR 12-25. Widely used by all demographics.
• Airport transfer (King Khalid to Olaya): SAR 50-90 by ride-hailing. The airport is 35 km north of the city center.

Private Vehicle

• Fuel (per liter): SAR 2.18-2.33 (government-set quarterly). Among the cheapest globally due to Saudi Arabia's oil production.
• Car payment (mid-range sedan): SAR 1,200-2,500/month for financing a new vehicle.
• Insurance: SAR 1,500-4,000/year depending on vehicle type and coverage level. Third-party is mandatory; comprehensive is recommended.
• No road tolls: Unlike Dubai (Salik) and Abu Dhabi (Darb), Riyadh has no toll gates — a notable saving for daily commuters.
• Parking: Largely free in residential areas. SAR 2-5/hour in commercial districts and malls during peak hours. Many employers provide free parking.

Utilities

Utility costs in Riyadh are managed through SEC (Saudi Electricity Company) and NWC (National Water Company):

• Electricity (apartment): SAR 200-600/month depending on apartment size and AC usage. Saudi Arabia uses a tiered tariff — the first 6,000 kWh/month is charged at SAR 0.18/kWh, with higher tiers at SAR 0.30/kWh. Summer bills can be 2-3x winter bills due to intense heat requiring 24/7 air conditioning.
• Water (apartment): SAR 50-150/month. Water is heavily subsidized but consumption is monitored. NWC bills separately from electricity.
• Electricity + Water (villa): SAR 500-1,500/month combined. Larger villas with gardens and pools consume significantly more, especially in summer.
• Internet (STC/Mobily/Zain): SAR 200-400/month for 100-500 Mbps fiber packages. STC has the widest coverage; Mobily and Zain are competitive alternatives. Fiber penetration in Riyadh is excellent.
• Mobile phone plan: SAR 100-250/month. STC, Mobily, and Zain all offer competitive plans with unlimited calls and 20-100+ GB data.

Utility costs in Riyadh are notably lower than in the UAE, particularly for electricity which benefits from subsidized tariffs for the first consumption tier. All utilities can be managed through respective apps (MySecAccount for SEC, AYAH for NWC).

Healthcare

Saudi Arabia has made significant investments in healthcare infrastructure, and Riyadh is home to some of the region's best medical facilities:

• Health insurance: Mandatory for all expat residents under the CCHI (Council of Cooperative Health Insurance) system. Employers must provide coverage. Basic plans (Class C) cover essential care; enhanced plans (Class A/B) cover private hospitals and specialist care. Plans range from SAR 1,500-8,000/year depending on class.
• GP consultation (private): SAR 150-400 per visit (insurance typically covers with SAR 20-50 co-pay).
• Specialist consultation: SAR 300-700 per visit.
• Dental checkup: SAR 150-350 (basic cleaning and exam).
• Emergency room visit: SAR 200-1,200+ depending on treatment.
• Pharmacy: Prescription medications are well-regulated and affordable at SAR 10-60 for common medications.

Riyadh's major hospitals include King Faisal Specialist Hospital (one of the top hospitals in the Middle East), Dr. Sulaiman Al Habib, Mouwasat, Kingdom Hospital, and the government-run King Saud Medical City. Healthcare quality in Riyadh is generally excellent, particularly at the specialized facilities, and has improved dramatically in the past decade.

Education

Riyadh has a growing number of international schools, though the market is less saturated than Dubai's:

• International schools (per year): SAR 20,000-55,000 depending on curriculum and school reputation. British, American, and IB curricula are available. The market is expanding rapidly to serve the growing expat population.
• Premium schools (per year): SAR 55,000-70,000 for top-tier institutions like the American International School of Riyadh, British International School of Riyadh, and Riyadh Schools (formerly ARAMCO schools).
• Indian/Pakistani curriculum schools (per year): SAR 8,000-18,000, offering significant value. International Indian School Riyadh and Pakistan International School are well-established with large enrollments.
• Nursery/preschool (per month): SAR 1,500-4,000 for children aged 2-5. Availability and quality vary, with newer international nurseries opening in northern districts.

School fee regulation in Saudi Arabia is less structured than in the UAE, and annual increases can be significant. However, many employers — particularly in the oil, gas, and government contracting sectors — offer education allowances of SAR 25,000-60,000 per child per year as part of the compensation package, which substantially offsets costs.

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 Riyadh

• Use the Riyadh Metro: For single professionals especially, the metro eliminates the need for car ownership. A monthly metro pass at SAR 200-280 versus car payments, insurance, and fuel saves SAR 1,500-2,500/month.
• Choose standalone villas over compounds: Compound living is convenient but premium-priced. Standalone villas in Al Yasmin or Al Arid cost 30-40% less than equivalent compound accommodation, though you lose community facilities.
• Shop at Panda and Othaim: These Saudi-chain supermarkets offer the best everyday prices. Combine with Tamimi for specialty items. Their mobile apps frequently have digital coupons for additional savings of 10-20%.
• Leverage Saudi coffee culture: Skip the international chains (Starbucks, Costa) charging SAR 22-30 and visit local specialty roasters charging SAR 12-18 for better quality coffee. Areas like Hittin and An Nakheel have dozens of excellent options.
• Free entertainment is expanding: Riyadh Season, Boulevard Riyadh City, and the Edge of the World (Jebel Fihrayn) are popular free or low-cost activities. Public parks including King Abdullah Park and Wadi Hanifah provide excellent free outdoor spaces.
• Negotiate your package, not just salary: In Saudi Arabia, the total package matters more than base salary. Push for housing allowance, education grants, annual flights (for the family), furniture allowance, and end-of-service gratuity — these benefits can add 40-60% to your effective compensation.
• Cook at home for major savings: Groceries in Riyadh are 15-20% cheaper than Dubai. Cooking 5-6 nights per week saves SAR 1,200-2,000/month compared to regular dining out, and the quality of fresh produce and meat in Saudi markets is excellent.
• Time your purchases: Major sales coincide with Ramadan, Eid al-Fitr, Eid al-Adha, Saudi National Day (September 23), and Founding Day (February 22). Electronics, clothing, and household goods are 30-70% off during these periods.