In 2009, a US equity ETF investor paid roughly 0.306% in fees per year. By the end of 2024, the asset-weighted average across ETFs had dropped to 0.17%, and the trend looked settled. Nukoud's ETF fee study says otherwise.
The average rose to 0.18% by early 2026, the first increase in over a decade, while ETFs launched in 2025 averaged a record 65 basis points, more than double the overall figure.
If you want to build a low-cost ETF portfolio in the GCC, you should keep an eye. The cheapest funds are still very cheap, but they now sit alongside newer launches that cost far more.
Start With What the Fee Costs
A $10,000 investment in a low-cost S&P 500 ETF may cost about $3 a year, while certain leveraged, active, or derivatives-based strategies can cost over $100. VOO and IVV each charge 0.03%.
According to the study, thematic ETFs average an expense ratio of 0.63%, leveraged equity ETFs have a median fee of 0.96%, and active ETFs typically charge 0.35% to above 1%. For derivatives-based structures, financing costs sit outside the stated expense ratio. Higher fees aren't necessarily bad, the study says, but you should know what you are paying for.
GCC-listed funds sit higher. At the end of 2025, 36 ETFs were listed on GCC exchanges, including 20 in the UAE (about $337 million in assets) and 13 in Saudi Arabia (about $2.6 billion, the largest market by assets).
Domestic equity ETFs charged 0.15% to 0.45%, sukuk and fixed income ETFs 0.25% to 0.50%, and thematic or cross-listed funds 0.50% to 0.75%. The study attributes the gap to the region's smaller scale, thinner liquidity, and higher operational costs.
To find low-expense-ratio ETFs in the GCC, use the Expense Ratio filter in the ETF Screener, which covers Saudi, UAE, wider GCC, and US listings. Then line up to four of them in Compare ETFs.
Build the Core First
Nukoud tags 56 funds as core portfolio building blocks, all of them US-listed. Several of the largest charge very little: VTI, VOO and AGG at 0.03%, VXUS at 0.05% (figures as of 15 October 2026). Between them, they cover total US stocks, the S&P 500, US aggregate bonds, and international stocks.
Nukoud also has a Passive tag with 293 funds. It describes a strategy, not a price, so you still need to check each fund's expense ratio. That applies to passive investing in the UAE as much as it does elsewhere.
Domicile Decides What You Keep
Two ETFs can track the same index and still deliver different returns. In Nukoud's piece on US and UCITS ETFs, US-domiciled funds default to 30% withholding on dividends for non-US investors, and for most residents no broad income-tax treaty reduces it. Irish UCITS ETFs holding US equities commonly face 15% at fund level.
It also notes that nonresident non-citizens holding more than $60,000 of US-situs assets at death must file Form 706-NA.
It is not all one way.
The same piece says US-domiciled ETFs often offer deeper liquidity, tighter spreads, and lower expense ratios, and that currency risk is relatively limited for UAE-based investors in USD assets because the AED is pegged to the dollar.
Five Funds Is Not the Same as Diversified
On asset allocation, the correlation guide opens with a warning: "Five ETFs can make a portfolio look diversified. They can also hide how much risk is moving in the same direction." It suggests an equity ETF for growth exposure, a bond or sukuk ETF for fixed-income exposure, a gold commodity ETF, and a thematic ETF for targeted exposure to a specific trend.
Correlation runs from -1 to +1, and the guide's matrix covers ten funds. The technology-themed AGIX and QUANTM showed a correlation of 0.615, the strongest positive pair.
The Saudi-listed short-maturity sukuk fund ALINMETF and the UAE Shariah equity fund UAEA showed a slightly negative correlation of -0.13. Gold was not a guaranteed hedge: the guide says investors "should not assume that gold will always rise when equities fall."
The results aren't predictions, and a 90-day correlation can tell a different story than a five-year one. The guide gives no target weights, so asset allocation in Saudi Arabia, or anywhere else in the GCC, is still your call.
What Readers Ask Us
How Much Does It Cost to Build a Low-Cost ETF Portfolio in the GCC?
Nukoud’s fee study puts domestic equity ETFs at 0.15% to 0.45%, sukuk and fixed income ETFs at 0.25% to 0.50%, and thematic or cross-listed funds at 0.50% to 0.75%.
What Tax Do Non-US Investors Pay on US-Listed ETF Dividends?
Per Nukoud’s US and UCITS article, US-domiciled funds default to 30% withholding on dividends for non-US investors, and Irish UCITS ETFs holding US equities commonly face 15% at the fund level. Confirm what applies to you with a qualified professional.
How Do I Buy ETFs in the UAE?
Nukoud’s UAE guide lists six steps: get an ADX investor number (NIN), open a brokerage account, fund it, search for the ETF, enter the order, and review your holdings.
You can get a NIN through the ADX mobile app with UAE Pass, the ADX website, or an accredited broker. Interactive Brokers has offered access to both ADX and DFM since late 2025.
Is There Currency Risk if I Buy US-Dollar ETFs From the UAE?
Nukoud’s US and UCITS article says currency risk is relatively limited for UAE-based investors in USD assets because the AED is pegged to the dollar.
Getting In
Buying an ETF in the UAE is broadly similar to buying a listed stock. Nukoud's UAE buying guide lists six steps: get an ADX investor number (NIN), open a brokerage account, fund it, search for the ETF, enter the order, and review your holdings.
The NIN identifies you for trading, clearing, and settlement on the exchange. You can get one through the ADX mobile app with UAE Pass, the ADX website, or an accredited broker.
The guide says Interactive Brokers has offered access to both ADX and DFM since late 2025, and that some local firms do not onboard US clients because of tax and regulatory requirements. Funding occurs via bank transfer after KYC checks, and funds may take a business day or more to become available.
Before you order, the guide suggests reviewing the fund's objective, holdings, fees, liquidity, historical performance, and risk profile. ETFs cross-listed on ADX, such as AGIX and KWIN, avoid the need for a separate overseas brokerage account.
