Gold's strong performance over the past several years has reinforced its role as a portfolio diversifier, but the latest data from ETFGI suggests that ease of access through ETFs may be becoming just as important a driver of demand as the underlying gold price itself. Data published by ETFGI on June 15, 2026, sourced from the Association of Mutual Funds in India (AMFI), reveals how powerfully retail participation in Gold ETFs has accelerated and what that structural shift tells GCC investors about their own market.
India's Gold ETF Boom in Numbers
India's Gold ETF industry has expanded from approximately $2.5 billion in AUM in March 2022 to $18.3 billion in March 2026, a more than sevenfold increase in four years. Investor accounts have tripled over the same period, rising from approximately 4.2 million to more than 12.4 million. High-net-worth and retail investors together now account for approximately 42.2% of Gold ETF assets, while retail investors alone represent roughly 11% of assets but nearly 95% of all investor accounts. The data highlights a broadening investor base and the increasing adoption of Gold ETFs across multiple investor segments.
The significance of this growth extends beyond gold itself. Gold ETFs have become one of the most successful entry points into the ETF ecosystem for Indian investors. The combination of a familiar asset class, transparent pricing, low-cost access, and exchange-traded liquidity has encouraged millions of investors to adopt ETFs as part of their portfolios. This experience offers valuable lessons for developing ETF markets globally, including those across the GCC.
By contrast, India's non-gold ETF segment covering equity, fixed income, and diversified strategies reached $95.7 billion in AUM by March 2026, with corporates controlling ~83% of assets. The total Indian ETF industry stood at $113.88 billion across 323 funds by the end of March 2026, with net inflows of $3.59 billion in the month. Equity ETFs led with $3.28 billion in net inflows, while commodity ETFs (which include gold) gathered a further $686.5 million. Notably, gold ETFs now represent roughly 16% of India's total ETF assets, a remarkably large share compared with many developed ETF markets where gold typically occupies a far smaller proportion of industry AUM.
The broader evolution of India's ETF industry has been equally remarkable. Over the past decade, the market has grown into one of the largest ETF ecosystems among emerging markets, creating the foundation that enabled the rapid adoption of Gold ETFs. We explored this trend in greater detail in our earlier analysis, India Built a US$119.8 Billion ETF Market. How Does It Compare to the GCC?, which examined the structural differences between the Indian and GCC ETF markets.
How Important Are Gold ETFs Within India's ETF Market?
This 16% share is notably elevated relative to developed markets such as the US, where gold ETFs represent a far smaller fraction of industry assets. The contrast points to a structural difference in how Indian investors use gold: not as a tactical hedge, but as a core portfolio allocation, a pattern with direct relevance for how GCC investors might approach exchange-traded gold products as the regional market develops.
What Gold ETF Options Are Available to GCC Investors Today?
While India has become one of the world's fastest-growing Gold ETF markets, the GCC remains in the early stages of developing exchange-traded gold investment products despite the region's deep cultural and financial affinity for gold.
*Albilad figures are based on fund-reported performance and net assets as of FY2025, while GLD, IAU, and SGOL figures are based on market data as of June 2026.
The standout GCC-listed vehicle is the Albilad Gold ETF (ticker: 9405), listed on Saudi Arabia's Tadawul exchange. Managed by Albilad Capital, it is the GCC's first Shariah-compliant gold ETF and provides investors with exchange-traded exposure to physical gold. According to the fund's latest annual report, net assets stood at approximately SAR 146.1 million as of the end of 2025, while the fund delivered a total return of 62.66% for the year. Over the past three years, cumulative returns have exceeded 127%, reflecting both the strong performance of gold and growing investor demand for exchange-traded gold exposure in the region.
Compared with global giants such as SPDR Gold Shares (GLD), iShares Gold Trust (IAU), and abrdn Physical Gold Shares ETF (SGOL), Albilad remains significantly smaller in terms of assets under management. However, its local listing, Shariah-compliant structure, and direct exposure to physical gold make it a unique investment vehicle for GCC investors seeking portfolio diversification without the storage, insurance, and liquidity challenges associated with holding physical bullion.
GCC investors seeking broader gold exposure beyond the Albilad Gold ETF currently rely largely on US-listed products such as GLD, IAU, and SGOL. The UAE and Qatar exchanges do not yet offer dedicated gold ETFs, creating a notable product gap. India's rapid adoption of Gold ETFs demonstrates how a familiar asset class can accelerate ETF market development, suggesting there may be significant long-term growth potential for additional gold ETF offerings across GCC exchanges.
What Can GCC Investors Learn from India's Gold ETF Ownership Trends?
India's Gold ETF growth was not accidental; it was driven by three structural forces that apply equally in the GCC: (1) a long-established cultural affinity with gold, now finding expression through a more liquid and accessible ETF wrapper; (2) growing retail investor awareness of ETFs as a low-cost proxy for physical gold without storage burdens; and (3) a conducive regulatory environment where products were available, visible, and easy to transact. The World Gold Council's Q1 2026 data confirms the global dimension: gold-backed ETF inflows of +62 tonnes were recorded in the quarter, driven heavily by Asian investors.
Critically, the ETFGI data reveals a nuanced picture of who owns gold ETFs in India. Corporations hold 58% of gold ETF AUM but represent only a small number of accounts, while high-net-worth individuals account for 31% of assets, and retail investors who make up ~95% of all folios hold the remaining 11% of AUM. The investor base is broad, but assets remain concentrated.
Can the GCC Replicate India's Gold ETF Success?
India's growth has been retail-led. The GCC market structure is meaningfully different, and that shapes the likely adoption path.
Rather than a retail-first wave, GCC gold ETF adoption is more likely to be led by family offices, private wealth platforms, pension funds, and sovereign-related institutions, with retail participation following as product awareness builds. The Albilad Gold ETF (9405) is already well-positioned for this pattern: its Shariah-compliant structure addresses the single largest barrier for conservative institutional buyers in the region.
Why Should GCC Exchanges and Asset Managers Watch This Trend?
India demonstrates that gold ETFs can function as a gateway product into the broader ETF ecosystem. For GCC exchanges, asset managers, and regulators, the implications are significant. Successful gold ETF adoption has the potential to attract first-time ETF investors, increase retail participation across asset classes, expand Shariah-compliant product ranges, improve ETF trading liquidity on regional exchanges, and support the deeper domestic capital market development that exchanges across the GCC are actively pursuing.
Takeaways for GCC Investors
India's Gold ETF story is a market infrastructure story as much as a gold story. Three lessons translate directly to the GCC:
For GCC investors already in equities ETFs such as AGIX, AIPOWR, KSA, or UAE-focused funds, a dedicated gold ETF allocation via Albilad Gold ETF (ticker: 9405) offers non-correlated, Shariah-compliant diversification. India's experience, where $18.3 billion in gold ETF AUM has been built in four years, is the clearest proof of concept available that the demand is real, the retail appetite exists, and the product form works.
Bottom line
The most important lesson from India is not simply that investors are buying more gold. It is that ETFs have become the preferred vehicle through which investors are accessing gold exposure. For GCC markets, India's experience provides a real-world case study of how a culturally familiar asset class can accelerate ETF adoption. Gold already occupies a unique position in regional portfolios through jewellery, bullion ownership, and institutional holdings. The next phase of growth may come from transforming that demand into exchange-traded products. As GCC exchanges seek to deepen liquidity, broaden retail participation, and expand Shariah-compliant investment options, Gold ETFs could become one of the most effective catalysts for the industry's next stage of development.
