Dhaka vs. Baghdad: Detailed 2026 Cost of Living & Quality Comparison

Overview and Key Differences

Dhaka, Bangladesh, and Baghdad, Iraq, present a stark contrast in terms of cost of living and quality of life metrics for 2026. While Dhaka offers significantly lower prices for most goods and services, including housing, transportation, groceries, and dining, Baghdad generally shows higher costs in these same categories. However, the most critical differentiator lies in the quality metrics. Baghdad demonstrates substantially better performance in key quality-of-life indicators such as healthcare, safety, infrastructure, and environmental quality, placing it far ahead of Dhaka in these crucial aspects. The trade-off, therefore, is primarily between affordability and the overall standard of living and safety.

Cost of Living Breakdown

When examining the cost of living, Dhaka is undeniably the more budget-friendly option. Basic food items, particularly staples like rice, are significantly cheaper in Dhaka compared to Baghdad. Transportation costs also favor Dhaka, with lower public transport fares and generally cheaper fuel. Even dining out and fast-food options are considerably more affordable in Bangladesh's capital. However, this lower cost extends to essentials like utilities, rent, and clothing. Baghdad's costs for these necessities are notably higher, reflecting a higher baseline for daily living expenses. Despite the lower salaries in Dhaka, the overall expenditure required for basic living is substantially less than in Baghdad.

Quality of Life and Infrastructure

Baghdad significantly outperforms Dhaka across multiple quality-of-life dimensions. Healthcare access and quality appear superior in Iraq, offering better medical facilities and services. Public safety is considerably higher in Baghdad, with lower crime rates reported. The city's infrastructure, including roads, public services, and environmental conditions, is rated much better, contributing to a more comfortable and secure living environment. Baghdad also shows better environmental quality metrics, suggesting cleaner air and less severe pollution issues compared to Dhaka. These factors collectively paint a picture of a higher standard of living and greater personal security in Baghdad.

Income, Employment, and Economic Factors

The economic landscape differs markedly between the two cities. Dhaka has a much lower average net salary, reflecting a lower cost of living but also indicating potentially lower earning potential. Baghdad, conversely, offers a higher average net salary, aligning more closely with its higher cost of living. While Dhaka's GDP per capita is lower, Baghdad's is significantly higher, suggesting a more robust economy. However, Baghdad's economic growth rate is considerably slower, and its population growth rate is higher, potentially indicating pressure on resources despite the larger economy. Dhaka's economy is smaller but shows faster growth.

Conclusion

In summary, Dhaka presents a clear advantage for individuals or families seeking the lowest possible cost of living, particularly for basic necessities. However, this comes at the significant cost of quality. Baghdad, while more expensive, offers a vastly superior quality of life, with better healthcare, safety, infrastructure, and environmental conditions. The decision between these two cities hinges entirely on the relative importance placed on extreme affordability versus a higher standard of living, personal security, and overall quality of life.

Climate Index

71.3 / 36.5

Cost of Living Index

25.7 / 34.2

Dhaka   Baghdad

Health Care Index

40 / 36.9

Pollution Index

94 / 92.2

Dhaka   Baghdad

Property Price to Income Ratio

14.6 / 20.9

Purchasing Power Index

41.5 / 55.8

Dhaka   Baghdad

Quality of Life Index

65.2 / 60.1

Safety Index

37.6 / 46.3

Dhaka   Baghdad

Traffic Commute Time Index

60.2 / 53.1

Dhaka   Baghdad