Yemen Ranks Second in Arab World for Cost of Living in 2026

Yemen has been ranked as the second most expensive country in the Arab world and 46th globally in terms of cost of living for 2026, according to the latest index from Numbeo. The country recorded 53.1 points on the index, which measures consumer goods and services prices relative to New York City.

The report revealed a notable increase in Yemen's cost of living index compared to 2025, when it registered 48.4 points and ranked 37th globally. This indicates a rise in price levels during the current year, despite its slight decline in the global ranking.

The United Arab Emirates topped the Arab countries with an index of 55.2 points, followed by Yemen. Qatar secured the third position among Arab nations with 50.4 points, trailed by Palestine, Bahrain, Saudi Arabia, Oman, and Kuwait.

Yemen's position among the most expensive Arab countries for living highlights a significant economic paradox, as rising prices do not necessarily correlate with improvements in income levels or the purchasing power of its population. The report emphasizes that the cost of living index solely measures the prices of goods and services and does not reflect wage levels, service quality, or actual purchasing power.

The index encompasses prices for food, restaurants, transportation, and utilities, while housing rental costs are calculated in a separate index. Numbeo's data suggests that Yemen has become one of the most costly Arab nations for daily spending on goods and services, despite the economic and living challenges faced by its residents.

On an Arab level, Gulf countries dominated the top positions in the ranking. Conversely, Egypt, Libya, Syria, Algeria, Tunisia, and Iraq were among the countries with the lowest cost of living in 2026.