Iraq has been ranked the fifth least expensive Arab country to live in for 2025, according to the latest data released on Wednesday by Numbeo, a global database that collects user-contributed data about cities and countries worldwide.
The rankings were compiled based on several indicators of affordability, including grocery prices, restaurant expenses, rent, and local purchasing power.
Leading the list as the most affordable Arab country was Libya, followed by Egypt, Syria, and Algeria. Iraq secured the fifth position, ahead of Tunisia, Morocco, and Jordan.
The data highlights a broader trend of economic accessibility in certain Arab nations, particularly those dealing with political or economic instability.
Numbeo’s cost of living index is widely regarded for providing insight into how expensive or affordable life is in countries and cities around the world.
The index aggregates data from hundreds of thousands of contributors globally, and is updated regularly to reflect real-time changes in consumer prices. The ranking suggests that Iraq remains an economically viable option for residents in terms of basic living costs.
Rental prices in cities like Baghdad and Basra are significantly lower than in neighboring Gulf countries, and daily consumer items such as food, transport, and utilities remain relatively affordable for the average citizen. However, this affordability often coincides with challenges related to infrastructure, public services, and security.
In contrast, the United Arab Emirates was listed as the most expensive Arab country in the report. It was followed by Yemen, Qatar, and Bahrain, which also showed high living expenses driven by elevated housing and service costs.
These findings align with trends observed in other global cities known for luxury markets, expat living, and high GDP per capita.
While countries like Libya and Syria topped the affordability list, experts caution that low cost of living may also reflect weak currencies, fragile economic conditions, or ongoing conflict, rather than purely positive economic factors.
In Iraq’s case, although there have been ongoing efforts to stabilize the economy, challenges remain in attracting investment and improving living standards.
Nonetheless, Iraq’s placement in the top five cheapest Arab countries may serve as a point of reference for regional development discussions. It also underscores the complex interplay between affordability, economic resilience, and quality of life in the Middle East.
As consumer prices continue to fluctuate globally due to inflation, supply chain disruptions, and geopolitical developments, cost of living rankings such as Numbeo’s will likely remain a key resource for individuals, investors, and policymakers navigating the economic landscape of the Arab world.