Is 8700 SAR per Month Sufficient for a Family of Two in Al Jubail, Saudi Arabia?

When living in Al Jubail, Saudi Arabia, with a monthly income of 8700 SAR, the adequacy of this salary for a family of two can vary significantly based on various factors. To provide a comprehensive analysis, we'll break down the expenses and discuss the overall financial feasibility.

Housing Costs in Al Jubail

Al Jubail, located in the Eastern Province of Saudi Arabia, is home to the Aramco oil and gas complex. As a major industrial hub, it is expected to offer employment opportunities in various sectors. However, the living cost in Al Jubail can be influenced by the availability of housing and transportation options provided by employers.

Employer-Provided Housing: If the employer arranges and pays for housing, the general monthly rental cost for a two-bedroom apartment in Al Jubail can range from 2500 to 3500 SAR. Given that the employer provides housing, a salary of 8700 SAR may seem inadequate. Typically, 3500 SAR is considered a reasonable cap for housing expenses, with the remaining 5200 SAR to cover other costs such as food, utilities, and any personal expenses.

Transportation Costs

Transportation in Al Jubail can be significantly lower compared to other major urban areas in Saudi Arabia. Public transportation is available and relatively affordable. However, having a car can be beneficial for daily commutes, groceries, and leisure activities.

Employer-Provided Car: If the employer provides a car, the maintenance, fuel, and insurance costs will be deducted from the 8700 SAR. Assuming an additional 2000 SAR for these recurring expenses, the budget for other living expenses would be reduced to 6700 SAR. This amount may prove to be tight for a family of two.

Private Car: If the family opts to own a car, the costs can add up. Monthly car payments or lease costs, insurance, maintenance, fuel, and parking fees can total around 4000 SAR. This would leave only 4700 SAR for other expenses, making it challenging to maintain a comfortable living standard.

Food and Utilities Costs

Food expenses in Al Jubail can be moderate. Groceries and dining out costs can easily add up to 1500 SAR per month for a family of two. Utilities, including electricity, water, and gas, also need to be considered. These can range from 500 to 700 SAR per month, depending on usage.

Total Expenses: Combining all the mentioned costs, the total monthly expenses for a family of two in Al Jubail with an 8700 SAR salary can reach 8,900 SAR to 10,000 SAR, leaving a slim margin or even a deficit. This analysis highlights that 8700 SAR is not a generous monthly salary, especially when considering the additional costs of transportation and owning a car.

Improving Financial Stability

To enhance financial stability despite a monthly salary of 8700 SAR, families in Al Jubail can consider the following strategies:

Living in Housing Provided by Employer: Opt for employer-provided housing as this can significantly reduce the monthly costs. Public Transportation: Utilize public transportation to save on car-related expenses. Cooking at Home: Prepare meals at home to reduce dining out costs. Consolidate Expenses: Consolidate bank accounts to avoid unnecessary fees and improve financial oversight. Save Incentives: Set aside a portion of the salary for savings, which can be utilized for unforeseen expenses or emergencies.

Conclusion

Based on the analysis, a monthly salary of 8700 SAR is considered decent for a family of two in Al Jubail, especially if the employer covers housing and transportation. However, additional costs such as private car maintenance and other utilities can strain the budget, making it challenging to maintain a comfortable standard of living. Families should consider strategic cost-saving measures to effectively manage their finances and ensure a stable and comfortable lifestyle in Al Jubail.