Dubai outperforms other Gulf markets as Fed rate decision eyed

Dubai’s benchmark share index jumped on Monday to its highest level in more than a decade, lifted by real estate and finance, while most other markets in the Gulf also gained ahead of the U.S. Federal Reserve interest rate decision due later this week.

The U.S. central bank is expected to cut rates by a quarter of a percentage point at its Dec. 17 to 18 meeting, which will also provide an updated look at how much further Fed officials think they will reduce rates in 2025 and perhaps into 2026.

The Fed’s decisions impact monetary policy in the Gulf, where most currencies, including the dirhams, are pegged to the U.S. dollar.

Dubai’s benchmark stock index jumped 4.5% to 5,048, its highest in 10 years and two months. Emirates NBD, Dubai’s largest lender, rose 9.3%.

Shares in Emaar Properties surged 14.7% to their highest level in nearly 17 years, after the blue-chip developer said it had planned to declare dividends at 100% of share capital for 2024 and next few years, amounting to 8.80 billion dirhams ($2.4 billion).

Meanwhile, HSBC raised its target price for the stock to 13.2 dirhams from 10.8 dirhams.

Most Gulf markets muted ahead of Fed rate decision; Qatar extends gains

The Qatari benchmark index extended its rally to a sixth session, gaining 0.4%. Industries Qatar rose 2.1% and Gulf International Services (GIS) added 0.4%.

State-owned energy giant QatarEnergy, which holds significant stakes in GIS and IQCD, reached an agreement on Sunday with Harmattan Energy Limited to acquire a 27.5% interest in an offshore exploration block in Namibia.

Saudi Arabia’s benchmark stock index bounced back after three straight sessions of losses, and rose 0.3%. ACWA Power gained 3.2% and Batic Investments and Logistics Co climbed 4.1%.

Conglomerate Batic said it had reached a memorandum of understanding with Parkin Company to explore smart city parking solutions across Saudi Arabia.

The Abu Dhabi benchmark index was up 0.2%, helped by a 3.6% rise in Aldar Properties and a 4.1% rise in Abu Dhabi Commercial Bank.

Outside the Gulf, Egypt’s blue-chip index was up 0.1% with GB Auto rising 4.4% and Talaat Moustafa Group adding 2.5%.

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 SAUDI ARABIA      up 0.3% to 12,097

 KUWAIT            down 0.4% to 7,808

 QATAR             added 0.4% to 10,578

 EGYPT             gained 0.1% to 30,799

 BAHRAIN           Closed

 OMAN              up 0.1% to 4,521

 ABU DHABI         added 0.2% to 9,280

 DUBAI             rose 4.5% to 5,048

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