The Middle East’s star continues to rise,  not just as a business hub, but as a destination where professionals can thrive. Each year, AIRINC’s Global 150 Index highlights the cities that offer the best mix of pay, tax advantages, cost of living, and overall quality of life. In 2025, the story for the Middle East is one of steady progress and growing confidence.

From Dubai’s long-standing appeal to Riyadh’s rapid transformation, Gulf cities are evolving fast. Tax-free salaries, lifestyle improvements, and vibrant expat communities are fueling their rise — but with living costs creeping up, companies are having to think carefully about how to keep their offers competitive.

Which Middle Eastern Cities Are Leading the Way?

  • Dubai, UAE (#12) and Abu Dhabi, UAE (#17) both climbed 3 places, reflecting enduring financial appeal and slight lifestyle improvements.

Both cities continue to offer strong financial packages, but rising housing and schooling costs are eroding net savings potential. Companies are increasingly reviewing housing allowances to remain competitive.

  • Doha, Qatar (#30) rose 8 places, boosted by stronger cost competitiveness and a stable tax environment.

Post-World Cup infrastructure and a continued focus on diversification are supporting expatriate quality of life. Employers, however, need to watch for rising utilities and service charges that affect day-to-day living costs.

  • Manama, Bahrain (#42) made a remarkable jump of +17 places, benefiting from improvements in both cost and tax scores.

Bahrain’s relative affordability versus its Gulf peers is a growing draw, especially for regional mobility programs looking to balance financial appeal with cost control.

  • Riyadh, Saudi Arabia (#69) also surged +17 places, as Saudi Arabia’s economic reforms and infrastructure investments increase its attractiveness.

The push to become a regional business hub is making Riyadh more visible in mobility programs. However, companies are navigating lifestyle gaps — particularly around schooling and entertainment — which remain important considerations for expatriate families.

  • Other Gulf cities such as Muscat, Oman (+9) and Kuwait City (+13) also improved, highlighting a broad regional trend of strengthening competitiveness.

These markets may not have the same lifestyle draw as Dubai or Doha, but their improved cost structures and stable tax environments make them attractive for short- to medium-term assignments.

What’s Driving the Region’s Rise?

The Gulf continues to be a magnet for expatriates. Tax-free salaries and government initiatives are strong drivers, but companies must carefully monitor housing and education inflation, which is rising faster than salary growth. AIRINC’s data shows that while the financial value proposition remains strong, the gap between headline salary competitiveness and net savings potential is narrowing in some hubs.

How Can Mobility Programs Stay Competitive?

  • Adjust Allowances Regularly: Review housing and education allowances annually to keep pace with inflation in the Gulf’s main hubs.
  • Tiered Benefits Approach: Consider differentiated packages for single assignees vs. families, as schooling costs are a major driver of total assignment expense.
  • Monitor Lifestyle Shifts: As cities like Riyadh evolve, assess lifestyle infrastructure (schooling, healthcare, leisure) when designing packages.
  • Leverage Secondary Hubs: Locations like Manama, Muscat, and Kuwait City can offer cost-effective alternatives for certain project-based assignments.
  • Communicate Net Value: Highlight the continued tax advantages of Gulf assignments to maintain their attractiveness, even as costs rise.

What’s Next for the Middle East in 2026?

As we move into 2026, companies will need to balance the high salaries and tax advantages of Gulf hubs with the rising cost of living and intensifying competition for talent. Proactive policy adjustments and data-driven allowance reviews will be key to sustaining the region’s appeal for mobile employees.

Leadership WERCshops Coming to Riyadh and Dubai

I will be in the region this November, presenting new insights and facilitating discussions on how mobility continues to shape the Middle East’s evolving workforce.

In Riyadh, we’ll examine Mobility as the Engine of Saudisation and share perspectives on Global Mobility and Immigration Trends. In Dubai, we’ll host interactive, hands-on sessions that showcase how technology enables mobility teams to engage earlier in the talent cycle — when moves are still being discussed and candidates are under consideration.

Across both locations, we’ll also feature workshops for Corporate HR Leaders focused on delivering greater program value, a case study on Global Employment Company setups including insights from Halliburton, and a series of stories from community leaders who are advancing the practice of mobility across the region.

We look forward to connecting with peers, sharing practical examples, and continuing the conversation on how data and collaboration can strengthen mobility’s impact in the Gulf.

Sign up here:

  • Riyadh 17 November – 0900 to 1700 at the Sheraton Riyadh Hotel & Towers King Abdullah Branch Rd, Al Wurud, Riyadh 12216, Saudi Arabia REGISTER
  • Dubai 19 November 19 – 0900 to 1700 at the  Dusit Thani Dubai Sheikh Zayed Rd - Trade Centre - DIFC - Dubai - United Arab Emirates REGISTER

Tracking Global City Rankings: Seven Years of Insights and Shifts

AIRINC's Global 150 Index has been offering valuable insights into the world’s leading cities for seven years. Over this time, the rankings have reflected shifts in salary levels, tax rates, living costs, and lifestyle conditions. The 2025 edition underscores how quickly conditions can change: U.S. cities gained ground on the back of cost and tax improvements, Canadian cities slipped due to lifestyle declines, and Tokyo recorded the largest drop in the 2025 Index. From established leaders like Zurich and Geneva to fast movers such as Houston, Chicago, and Guatemala City, the rankings continue to highlight the dynamic balance between financial strength and quality of life. Subscribe to our blog for more updates including more on each region!

 

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