Most Gulf markets ease on hawkish Fed; #Dubai rises | Reuters

Most Gulf markets ease on hawkish Fed; Dubai rises | Reuters

The major stock markets in the Gulf, with the exception of Dubai, were subdued in early trading on Thursday, tracking Asian shares lower after the U.S. Federal Reserve maintained its hawkish stance.

Most Gulf Cooperation Council countries, including Saudi Arabia, the United Arab Emirates and Qatar, have their currencies pegged to the U.S. dollar and follow the Fed's policy moves closely, exposing the region to a direct impact from monetary tightening in the world's largest economy.

Saudi Arabia's benchmark index (.TASI) dropped 0.3%, on course to extend losses from the previous session, weighed down by a 0.8% fall in Al Rajhi Bank (1120.SE) and a 1.2% decline in Riyad Bank (1010.SE).

Prices of oil - a key catalyst for the Gulf's financial markets - slipped in Asian trade as fears of a sluggish demand recovery in China, the world's top crude importer, offset the prospect of tighter supply, with top exporters Saudi Arabia and Russia cutting output.

In Abu Dhabi, the index (.FTFADGI) eased 0.1%.

The Qatari index (.QSI) fell 0.1%, with Qatar Gas Transport Co (QGTS.QA) losing 1.5% and Qatar Islamic Bank (QISB.QA) retreating 0.7%.

On the other hand, Dubai's main share index (.DFMGI) advanced more than 1% to its highest since 2015, led by a 2.3% jump in top lender Emirates NBD (ENBD.DU).

Foreign direct investment (FDI) flows into the UAE rose 10% in 2022 from the previous year to a record $23 billion, the United Nations trade body said in a report on Wednesday.

The UAE, the Arab world's second-biggest economy, attracted around 60% of total FDI into the six-member Gulf Cooperation Council (GCC) bloc, which more than doubled to $37 billion, UNCTAD said.