Why Oman is considered the most affordable country in Gulf?
Oman has been named the most affordable country to live in across the Gulf Cooperation Council (GCC) for 2025, according to the latest Cost of Living Index released by data platform Numbeo.
Long known for its serene landscapes and understated charm, the Sultanate is now gaining recognition for something even more practical, it offers residents the Gulf's most budget-friendly lifestyle.
From Maritime Empire to Modern Oasis
For centuries, Oman's identity was shaped by the sea. In the 17th and 18th centuries, Muscat was a thriving maritime capital, with Omani ships dominating trade routes along East Africa and the Indian Ocean. The Omani Empire once stretched down the African coast, including Zanzibar, leaving a cultural legacy still visible today in language, architecture, and cuisine.
Unlike its flashier Gulf neighbours, Oman retained a distinct approach to modernisation. After Sultan Qaboos bin Said came to power in 1970, Oman underwent rapid transformation, from an isolated desert kingdom with just a few kilometres of paved roads to a modern state with free education, healthcare, and a robust infrastructure network. Yet it did so without embracing the hyper-urbanisation seen in Dubai or Doha.
Today, under Sultan Haitham bin Tariq, Oman continues its Vision 2040 reforms, aiming for economic diversification while preserving its cultural authenticity. This balancing act is a large part of why living in Oman feels calmer and less pressured compared to the steel-and-glass intensity of its neighbours.
The 2025 Cost of Living Rankings
Numbeo's 2025 Cost of Living Index ranks GCC countries from most to least affordable, and Oman stands out as the region's best-value destination:
Oman: Monthly family costs average Dh9,597.6 (OMR 1,004.7; approx. USD 2,611.54), with single residents spending around Dh2,773.2 (OMR 290.3; approx. USD 755.56). The Sultanate's cost of living is 26.5% lower than the UAE's, and rent is a staggering 71.7% cheaper.
Bahrain: Second most affordable, with Manama's family costs at Dh10,496.8 (BHD 1,076.1) and single costs at Dh2,968.5 (BHD 304.3), nearly 25% cheaper than Dubai.
Kuwait: Family living costs Dh11,105.1 (KWD 923.0), singles Dh3,012.5 (KWD 250.4). Living here is roughly 27% cheaper than Dubai, with rent 61% less.
Qatar: Doha sees family expenses at Dh11,716.9 (QAR 11,655.5) and individual costs at Dh3,276.7 (QAR 3,259.5), 20.7% cheaper than Dubai.
Saudi Arabia: Riyadh's family costs are Dh12,167.9 (SAR 12,424.0) with singles spending Dh3,378.5 (SAR 3,449.6). Living costs are 19.9% lower than Dubai's, and rent is 55.2% less.
United Arab Emirates: The UAE remains the region's priciest country. In Dubai, families spend around Dh14,765 monthly and singles Dh4,242.5. Abu Dhabi is slightly cheaper but still significantly costlier than other GCC capitals.
Why Oman's Affordability Stands Out
Oman's edge lies not only in cost but in quality of life.
Its cities are less congested, infrastructure is reliable, and its social fabric remains close-knit. For expatriates, Oman offers a rare combination: safety, economic value, and cultural richness without the relentless pace and consumerism of larger Gulf hubs.
Moreover, Oman's natural beauty, from the jagged Hajar mountains to golden Wahiba Sands and tranquil coastline, makes daily life feel like a permanent getaway.
Its policies on rent control and subsidy structures also keep costs in check.
Impact on Regional Migration and Policy
This affordability index matters beyond lifestyle choices. It could reshape migration patterns within the GCC, with more professionals and families considering Muscat over Dubai or Doha. For policymakers, the data is a reminder that economic growth strategies must balance high-end development with liveable, affordable environments.
What is Numbeo's Cost of Living Index?
The Cost of Living Index is a global tool comparing the average expenses needed to maintain a certain standard of living. It measures housing, food, utilities, transport, and miscellaneous daily costs, offering insights to individuals, businesses, and governments worldwide. Numbeo, the platform behind it, crowdsources data globally to present real-time snapshots of affordability.
Oman's Path Ahead
As the Gulf transitions into a post-oil era, Oman's steady approach may prove wise. Its diversified economy, ranging from tourism to logistics, combined with affordable living, positions it as the region's rising dark horse. While Dubai dazzles and Riyadh rebrands, Oman remains Oman, tranquil, traditional, and surprisingly cost-effective.
For those seeking a life of dignity without drowning in debt, it may just be the Gulf's best-kept secret.
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