Al-'Ula (Al Ula, AlUla), Saudi Arabia

Capital City

Living costs at least 40% higher than Riyadh await expats in this ancient oasis turned luxury tourism hotspot 350km northwest of Medina. Finding affordable housing is particularly challenging during peak seasons, with limited options between camping and high-end resorts.

The city proper, home to around 60,000 residents as of 2022, sprawls across 2,391 square kilometers of dramatic desert landscape. Its historic core consists of a dense cluster of traditional mud-brick and stone houses, though the last permanent residents moved out in the 1980s. Modern Al-'Ula has expanded significantly since then through agricultural development and an influx of both settled Bedouins and foreign workers.

The former incense route trading post is now positioning itself as an ultra-luxury destination, targeting 2 million annual tourists by 2030. Major infrastructure upgrades include an expanded international airport handling 400,000 passengers yearly and ambitious cultural projects like the mirrored Maraya Concert Hall. But this rapid development comes at a price - while job opportunities in tourism are growing, the cost of living continues to climb as the city caters increasingly to wealthy visitors.