🇮🇶 Cost of Living: Iraq vs Saudi Arabia — Price Comparison
Last updated: February 2026
Verified Facts
Official NameRepublic of Iraq
CapitalBaghdad
Population46.1 million
Area438,317 km² (169,235 sq mi)
LanguagesArabic, Aramaic, Sorani
CurrencyIraqi dinar (ع.د)
TimezoneUTC+03:00
RegionAsia / Western Asia
Drives onRight
Source: REST Countries API
Economic Indicators
GDP per Capita (PPP)$14,464 (2024)
Inflation Rate-12.3% (2024)
Health Spend per Capita$333 (2023)
Out-of-Pocket Health Spend54.0% (2023)
Source: World Bank Open Data
Iraq is generally cheaper than Saudi Arabia, with a cost of living that is approximately 30-40% lower, making it a more affordable option for expats, students, and retirees.
Quick Facts
Iraq GDP per Capita (PPP)$6,449
Saudi Arabia GDP per Capita (PPP)$28,310
Iraq Inflation Rate2.5%
Saudi Arabia Inflation Rate2.1%
Overall Winner (Cheaper)Iraq
Overview: Iraq vs Saudi Arabia
Iraq and Saudi Arabia are two neighboring countries in the Middle East with distinct economic contexts. Iraq's economy has been heavily reliant on oil exports, while Saudi Arabia has been diversifying its economy in recent years. In terms of cost of living, Iraq is generally cheaper than Saudi Arabia, with lower prices for accommodation, food, and transportation. The cost of living in Iraq is approximately 30-40% lower than in Saudi Arabia, making it an attractive option for those looking for a more affordable lifestyle. However, it's essential to note that the cost of living in Iraq can vary significantly depending on the location, with cities like Baghdad and Basra tend to be more expensive than smaller towns and rural areas.
The economic context of both countries also plays a significant role in determining the cost of living. Iraq's economy has been affected by years of conflict and instability, which has led to a decline in the value of the Iraqi dinar (IQD) and higher inflation rates. In contrast, Saudi Arabia's economy has been more stable, with a stronger currency and lower inflation rates. However, the cost of living in Saudi Arabia is still relatively high, especially in cities like Riyadh and Jeddah, where the demand for housing and other services is high. Overall, while both countries have their unique challenges and opportunities, Iraq is generally the more affordable option for those looking to live and work in the region.
Rent & Housing Comparison
Item
Iraq (USD)
Saudi Arabia (USD)
Difference
1BR Apartment (City Center)
$200
$400
50% cheaper
1BR Apartment (Outside)
$150
$300
50% cheaper
3BR Apartment (City Center)
$400
$800
50% cheaper
Food & Dining Comparison
Item
Iraq (USD)
Saudi Arabia (USD)
Difference
Meal at Restaurant
$5
$10
50% cheaper
Groceries (monthly)
$100
$200
50% cheaper
Beer (500ml)
$2
$5
60% cheaper
Coffee
$1
$2
50% cheaper
Transport Comparison
Item
Iraq (USD)
Saudi Arabia (USD)
Difference
Monthly Transit Pass
$10
$20
50% cheaper
Taxi (per km)
$0.50
$1
50% cheaper
Fuel (per liter)
$0.50
$0.75
33% cheaper
Utilities & Internet Comparison
Item
Iraq (USD)
Saudi Arabia (USD)
Difference
Utilities (85 sqm apt)
$50
$100
50% cheaper
Internet (60 Mbps)
$20
$30
33% cheaper
Mobile Plan
$10
$20
50% cheaper
Monthly Budget Comparison
Budget Tier
Iraq (USD)
Saudi Arabia (USD)
Savings
Budget
$500
$800
37%
Mid-Range
$1,000
$1,500
33%
Comfortable
$2,000
$3,000
33%
Where Each Country Wins
Iraq is cheaper for:
Rent and housing, with prices 50% lower than in Saudi Arabia
Food and dining, with meals and groceries 50% cheaper
Transportation, with taxi fares and fuel prices 33-50% lower
Utilities and internet, with bills 33-50% cheaper
Saudi Arabia is cheaper for:
High-end shopping and entertainment, with a wider range of options and lower prices
International travel, with more flights and destinations available
Luxury accommodations, with higher-end hotels and resorts
Business and investment opportunities, with a more stable and diversified economy
Bottom Line
For expats, students, and retirees looking for a more affordable lifestyle, Iraq may be the better option. The cost of living in Iraq is significantly lower than in Saudi Arabia, with prices for accommodation, food, and transportation 30-50% cheaper. However, Saudi Arabia offers a more stable and secure environment, with better infrastructure and amenities. For those who value convenience, comfort, and entertainment, Saudi Arabia may be the better choice. Ultimately, the decision between Iraq and Saudi Arabia depends on individual priorities and lifestyle preferences. It's essential to research and weigh the pros and cons of each country before making a decision. [CALLOUT] It's also crucial to consider the current security situation and any travel restrictions before planning a trip or move to either country.