Is Iraq Cheaper Than Saudi Arabia?

Introduction

When considering travel or relocation to the Middle East, cost of living is a crucial factor. Iraq and Saudi Arabia, two neighboring countries with rich histories and cultural significance, offer vastly different economic experiences for visitors and residents alike. This comprehensive comparison examines various aspects of daily expenses, from accommodation and food to transportation and entertainment, providing you with actionable insights to make informed decisions about which country might be more affordable for your specific needs.

Overall Cost of Living Comparison

Iraq generally offers a significantly lower cost of living than Saudi Arabia. While Saudi Arabia has developed a modern, oil-rich economy with luxurious amenities and infrastructure, Iraq continues to rebuild after years of conflict, resulting in lower prices across most expense categories.

According to cost of living indexes, living in Iraq can be approximately 40-50% cheaper than in Saudi Arabia, though this varies by city and lifestyle choices.

Housing and Accommodation Costs

Iraq

Housing in Iraq is considerably more affordable than in Saudi Arabia. Rental prices in Baghdad and other major Iraqi cities offer substantial savings compared to Saudi Arabian urban centers.

Average monthly rent for a one-bedroom apartment in Baghdad city center: $300-500
Monthly rent for a three-bedroom apartment in Baghdad city center: $600-900
Monthly rent outside city centers: 30-40% lower than central locations
Utility costs (electricity, water, heating) in Iraq: $50-120 monthly

Saudi Arabia

Saudi Arabian housing costs reflect the country’s higher standard of living and more developed infrastructure.

Average monthly rent for a one-bedroom apartment in Riyadh city center: $700-1,000
Monthly rent for a three-bedroom apartment in Riyadh city center: $1,200-2,000
Jeddah and Dammam rental prices: Slightly lower than Riyadh but still significantly higher than Iraq
Utility costs in Saudi Arabia: $100-200 monthly

Property purchase prices follow similar patterns, with real estate in Iraq costing significantly less per square meter than in Saudi Arabia’s major cities.

Food and Grocery Expenses

Iraq

Food costs in Iraq are notably lower than in Saudi Arabia, especially for locally produced items.

Basic meal at an inexpensive restaurant: $3-7
Three-course meal for two at a mid-range restaurant: $20-30
Local market food prices: Very affordable, with fruits, vegetables, and staples available at low prices
Imported goods: More expensive but still cheaper than in Saudi Arabia

Saudi Arabia

Saudi Arabia has more diverse food options but at higher prices.

Basic meal at an inexpensive restaurant: $8-15
Three-course meal for two at a mid-range restaurant: $40-60
Supermarket prices: Higher than Iraq, especially for fresh produce
International cuisine and imported food items: Significantly more expensive

Both countries offer excellent street food options at reasonable prices, though Iraq typically provides more value for money.

Transportation Costs

Iraq

Transportation in Iraq is considerably cheaper than in Saudi Arabia, though the infrastructure may be less developed.

Local bus/minibus fare: Less than $0.50 per trip
Taxi starting fare: Approximately $2
Gasoline price per liter: $0.50-0.70
Used car prices: 30-40% lower than in Saudi Arabia

Saudi Arabia

Saudi Arabia offers more modern transportation options but at premium prices.

Local bus fare: $1-2 per trip
Taxi starting fare: $3-5
Ride-sharing services: Widely available but costlier than Iraq
Gasoline price per liter: $0.60-0.80 (historically subsidized but prices have increased in recent years)
New car prices: Higher than Iraq, though financing options are more readily available

Healthcare Costs

Iraq

Healthcare in Iraq is more affordable but faces challenges in quality and accessibility.

Basic doctor’s visit: $10-30
Specialist consultation: $30-80
Common medications: Lower priced than Saudi Arabia
Private healthcare options: Limited but significantly cheaper than Saudi equivalents

Saudi Arabia

Saudi Arabia offers higher quality healthcare but at substantially higher costs.

Basic doctor’s visit: $50-100
Specialist consultation: $100-300
Private hospital care: World-class but expensive
Health insurance: Often provided by employers for expats, but private plans are costly

Education Expenses

Iraq

Education costs in Iraq are modest compared to Saudi Arabia.

Public universities: Very affordable or free for citizens
Private schools: $1,000-4,000 per year
International schools: $4,000-8,000 per year, limited availability

Saudi Arabia

Education in Saudi Arabia offers more international options but at premium prices.

Public education: Free for citizens and subsidized for some residents
Private schools: $5,000-15,000 per year
International schools: $10,000-25,000 per year
Higher education: More prestigious but costlier than Iraqi options

Entertainment and Leisure

Iraq

Entertainment options in Iraq are more limited but substantially cheaper.

Movie ticket: $5-8
Gym membership: $20-50 monthly
Coffee in a café: $1-3
Cultural sites entry fees: Minimal or free in many cases

Saudi Arabia

Saudi Arabia offers more diverse entertainment options following recent social reforms, but prices are higher.

Movie ticket: $15-20
Gym membership: $70-150 monthly
Coffee in a café: $4-8
Entertainment city entry fees: $30-60
Cultural and sporting events: Significantly more expensive than Iraq

Communication and Internet Costs

Iraq

Communication services in Iraq are more affordable but may offer lower speeds and reliability.

Monthly internet (60 Mbps): $30-50
Mobile plan with data: $10-20 monthly
Prepaid mobile tariff: Lower per-minute rates than Saudi Arabia

Saudi Arabia

Saudi Arabia provides better connectivity at higher prices.

Monthly internet (100+ Mbps): $70-120
Mobile plan with data: $30-60 monthly
Better coverage and service quality nationwide

Taxation and Financial Considerations

Iraq

Iraq has lower taxation overall.

Income tax: Progressive system ranging from 3-15%
Sales tax: Lower than Saudi Arabia
Property taxes: Minimal

Saudi Arabia

Saudi Arabia has introduced more taxes in recent years as part of economic reforms.

Income tax: 0% for Saudi citizens, up to 20% for foreign companies
Value Added Tax (VAT): 15% (increased from 5% in 2020)
Various fees and levies on expatriates and dependents

Cost Factors for Expatriates

Iraq

For expatriates, Iraq offers:

Lower cost of living but security concerns in some areas
Premium on secure housing in expatriate compounds
Higher insurance costs
Potential hardship allowances for employment
Lower everyday expenses

Saudi Arabia

For expatriates, Saudi Arabia provides:

Higher quality of life but at premium costs
Better infrastructure and amenities
More stringent visa regulations and associated costs
Higher costs for western-style goods and services
More developed expatriate communities

Practical Tips for Budget-Conscious Travelers and Expatriates

Saving Money in Iraq

Consider accommodation outside city centers
Use public transportation when safe
Shop at local markets rather than imported goods stores
Learn basic Arabic to negotiate better prices
Be aware of regional price variations between northern and southern Iraq

Saving Money in Saudi Arabia

Look for accommodation in newer developing areas
Take advantage of promotional offers at restaurants and cafes
Use carpooling or ride-sharing options
Shop during seasonal sales and festivals
Consider package deals for entertainment options

City-Specific Comparisons

Baghdad vs. Riyadh

Baghdad offers 50-60% lower housing costs
Everyday expenses in Baghdad are approximately half of those in Riyadh
Riyadh offers more modern amenities and infrastructure

Basra vs. Jeddah

Basra provides significantly lower costs across all categories
Jeddah offers more developed beach and leisure facilities at higher prices
Both cities have strategic port locations but different living standards

Conclusion

Iraq is definitively cheaper than Saudi Arabia across nearly all expense categories, from housing and food to transportation and entertainment. The cost difference can range from 40-60% depending on the specific category and location within each country.

However, this price advantage comes with important trade-offs. Saudi Arabia generally offers better infrastructure, more modern amenities, greater stability, and higher quality services. Iraq provides significant cost savings but with more variable service quality and ongoing development challenges in some regions.

Your personal priorities regarding budget, lifestyle preferences, security considerations, and required amenities should guide your decision when choosing between these two Middle Eastern nations. For those prioritizing cost above all else, Iraq offers substantial savings, while those seeking modern conveniences and established expatriate communities might find Saudi Arabia worth the premium despite being more expensive.