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 Numbeo's Cost of Living Index. The country registered 53.1 points on the index, which compares consumer prices for goods and services against New York City as a benchmark.

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

The United Arab Emirates topped the Arab countries with an index of 55.2 points, followed by Yemen, and then Qatar in third place with 50.4 points. Palestine, Bahrain, Saudi Arabia, Oman, and Kuwait followed in the ranking.

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

The index encompasses prices for groceries, restaurants, transportation, and utilities, with housing rent calculated in a separate index. Numbeo's data indicates that Yemen has become one of the most costly Arab nations for daily spending on goods and services, notwithstanding the economic and living challenges faced by its residents.

On an Arab regional level, Gulf countries dominated the top positions in the ranking. Conversely, Egypt, Libya, Syria, Algeria, Tunisia, and Iraq were listed among the least expensive countries to live in during 2026.