A new study has shown that the cost of living for expatriates in Dubai and Abu Dhabi has fallen as a result of declining rental costs.

The study, conducted by Mercer, found that Abu Dhabi is the most expensive city in the region for foreign workers to live in, with Dubai second. However, Dubai dropped 26 places on the global list to 81, while Abu Dhabi was at 67.

The least expensive city in the region for expatriates was Jeddah in Saudi Arabia, which was at 185 on the global ranking.

“Since the financial crisis we have seen stabilisation in the cost of living in the UAE,” says Callum Burns-Green, head of Mercer’s Dubai office. “That is making the country more attractive as a place for companies to have their workforce.”