Hidden costs of studying abroad and budget guide for Emirati students

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Funding and finance Student experience Destination Affordability and funding

Published: 22 June 2026
Updated: 21 June 2026

Studying abroad involves more than just tuition fees and monthly rent. For many UAE families, additional costs such as accommodation deposits, SIM cards, health cover gaps, visa charges and money transfer fees can increase the total budget by 20–30%.

Over a three-year degree in destinations such as UK, Australia or Canada, these often-overlooked expenses can reach AED 15,000–30,000 or more.

That’s why IDP’s Student Essentials service helps UAE students prepare before departure. Available for students across Dubai, Abu Dhabi, and Sharjah. It simplifies key steps such as accommodation, health cover, banking, money transfers and SIM setup before you even leave the UAE.

The 8 hidden costs UAE students forget to budget for

1. Accommodation setup costs before the rent starts

Securing student accommodation abroad often requires upfront payments before moving-in. Many families plan for rent but not these one-off costs. Common setup costs include: 

Security deposit: Usually 4 to 6 weeks’ rent in the UK, and around one month in Australia and Canada. Refundable, but still a significant upfront cost.
Agency or broker fees: In parts of the UK, these can reach up to one month’s rent.
Basic furniture and essentials: Bedding, kitchen items and small furniture can cost AED 1,500 to 3,000.
Utilities setup: Some providers require advance payments or setup charges.

Cost Item	UK	Australia	Canada
Security Deposit	AED 4,500–7,500	AED 3,200–5,000	AED 2,800–4,500
Agency Fee	AED 3,500–6,000	N/A (rare)	N/A (rare)
Essential Furniture	AED 1,500–3,000	AED 1,500–2,500	AED 1,500–2,500
Utilities Setup	AED 200–500	AED 150–400	AED 150–400

IDP helps you secure verified accommodation in cities such as London, Sydney and Toronto, reducing the risk of scams.

2. Health Cover Gaps: What you pay when you're sick

Student visa health cover does not include everything. Knowing the gaps helps you avoid unexpected costs.

United Kingdom: Students must pay for the NHS Immigration Health Surcharge (IHS), which provides access to NHS services. However, expenses such as dental care, optical treatment, and some prescriptions may still require out-of-pocket payments.
Australia: Overseas Student Health Cover (OSHC) is mandatory before visa approval. Standard plans may not include dental treatment, physiotherapy or certain specialist services.
United States: Many universities require a health plan; however, coverage and costs vary widely. Students may also face high deductibles and limited provider networks.
Canada: Coverage depends on the province. Some include international students in public healthcare, while others require private or additional insurance.

What your visa health requirement does not cover

Dental check-ups and treatment (fillings, extractions orthodontics)
Optical appointments and prescription eyewear
Physiotherapy and allied health services
Mental health counselling beyond basic GP referrals
Private specialist consultations
Repatriation in the event of a serious medical emergency

3. SIM cards and connectivity problems

Arriving in a new country without a working local SIM can be a stressful and expensive start. UAE roaming plans are not designed for long-term student use, and a single month in the UK or Australia can cost AED 500–800. Buying a SIM card at the airport is easy but often overpriced. High-street providers usually require proof of address, which most students don’t have on day one. IDP helps UAE students stay connected from the start by providing a local SIM for their destination country. It is ready to use on arrival, with no proof of address required and data plans designed for students.

4. Money transfer fees: the silent budget leak

Sending money from UAE to a student's bank account in UK, Australia or Canada may seem simple, however, fees and exchange rate margins can quietly increase costs.

A typical UAE bank transfer includes a flat fee of AED 75–150, plus an exchange rate margin of 2–4% above the mid-market rate. For families sending AED 15,000 per month, a 3% margin alone costs AED 450 per transfer, so over AED 5,000 per year.

Transfer Method	Typical Fee	Rate Margin	Annual Cost (AED 15k/month)
UAE bank transfer	AED 75–150	2–4%	AED 4,800–8,700
IDP Money Transfer	Low / transparent	Near mid-market	Significantly lower
Exchange bureau	AED 50–100	1.5–3%	AED 3,600–6,300

5. Mandatory visa surcharges and government fees  

Beyond application fees and tuition deposits, you will also need to pay required government charges that are often missed in initial budgets.

Destination	Fee Type	Approximate Cost (AED)	Paid By
United Kingdom	Immigration Health Surcharge (IHS)	AED 8,500/year	Student (at visa application)
United Kingdom	Student Visa Application Fee	AED 1,550	Student
Australia	Student Visa (Subclass 500)	AED 2,400	Student
Australia	OSHC (Overseas Student Health Cover)	AED 1,800–3,500/year	Student
Canada	Study Permit Application	AED 550	Student
Canada	Biometrics Fee	AED 440	Student
United States	F-1 Visa Application	AED 680	Student
United States	SEVIS Fee (I-901)	AED 800	Student

6. Academic fees beyond tuition  

Tuition fees are only part of the cost. Once you enrol, additional academic charges may apply throughout the year. Common hidden academic costs include:

Student union / union services fee: Charged by most UK and Australian universities, typically AED 400–900/year.
Technology and systems fee: Charged by many US and Canadian institutions for access to learning platforms and IT support.
Course materials and textbooks: Physical and digital materials can cost AED 1,500–4,500 per academic year, depending on your course.
Laboratory and studio fees: Common in engineering, medicine, architecture and art programs.
Graduation and gown hire: Often overlooked, with costs of AED 400 to 900 in most countries.
Library and printing credits: Many universities use pay-as-you-go printing, and included credits may only cover basic use.

7. Arrival costs: budgeting for your first 72 hours

Your first few days in a new country can be the most expensive. With many essentials still not arranged, costs can add up quickly as you settle in.

Expense	UK (AED)	Australia (AED)	Canada (AED)
Airport transfer / taxi	350–600	250–500	250–450
First night accommodation (if not immediate)	400–700	350–650	350–600
SIM card (local, Day 1)	150–300	120–250	150–300
Bedding and towels	400–700	350–600	350–600
Kitchen essentials	300–500	250–450	250–450
Groceries (first shop)	250–400	200–350	200–350
Transport card / pass top-up	150–250	100–200	100–200
TOTAL (estimated)	2,000–3,450	1,570–3,000	1,650–2,950

 Source: Indicative estimates compiled from Numbeo cost-of-living data, airport transport providers, public transport authorities, student accommodation providers, and telecommunications providers in the UK, Australia, and Canada. Actual costs vary by city, provider, travel season, and individual circumstances.

8. Emergency reserve: the financial cushion every family needs

No matter how carefully you plan, unexpected costs can come up. Flight disruptions, medical costs not fully covered by insurance, laptop repairs and emergency travel home are all common situations during a student’s time abroad.

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The IDP Student Essentials checklist: plan before you land 

IDP Student Essentials helps you prepare for the practical side of studying abroad, from health cover and accommodation to SIM cards and money transfers. 

The table below highlights common hidden study abroad costs and how IDP helps you plan for them early:

Hidden Cost	IDP Essentials Solution	When to Act
Health cover gap (UK, Australia, USA, Canada)	Student Health Cover: compare providers, purchase in minutes	Before visa application
OSHC (Australia mandatory)	Student Health Cover via Cohort Go: fully compliant OSHC	Before visa is granted
Accommodation setup costs	Accommodation: verified housing in London, Sydney, Toronto and more	3–6 months before arrival
SIM card / Day 1 connectivity	SIM Cards: local SIM ready to use on landing	2–4 weeks before departure
Money transfer fees	Money Transfer: transparent AED transfers to student accounts	Set up before first tuition payment
Student banking setup	Partner banking guidance (incl. HSBC UAE Future Planner)	1–2 months before departure
Arrival costs (first 3 days)	Combination of Accommodation + SIM Cards = smoother arrival	Confirmed before departure
Emergency reserve access	Money Transfer: fast, low-cost transfers when urgently needed	Ongoing throughout studies

A note for parents: How to stay in control from UAE

Sending your child abroad to study is a major milestone. While planning finances can feel complex, the right support and tools can make the process clearer and more manageable.

A few simple tools can help you plan ahead, manage costs and stay connected:

Multi-currency account: Accounts such as HSBC UAE’s Future Planner account can help you hold, convert and transfer currencies such as GBP, AUD, CAD and USD more easily while supporting your child abroad.
Shared budgeting app: Setting up a shared budgeting tool before departure to track spending, stay organised and manage costs more confidently.
IDP Live App: Stay connected with your IDP counsellor at every stage, get real-time updates on your application, and access support quickly so you can make informed decisions from application to arrival and beyond.
IDP counsellors: Students in UAE can speak to experienced IDP counsellors in Dubai, Abu Dhabi and Sharjah who understand local financial concerns and can support pre-departure budgeting.