Gulf markets mixed as expectations rise of US rate cuts | Reuters

Gulf markets mixed as expectations rise of US rate cuts | Reuters

Stock markets in the Gulf ended mixed on Tuesday as expectations mounted U.S. interest rates will fall, with the Saudi index giving up early gains to close lower.

Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Federal Reserve's policy because most regional currencies are pegged to the U.S. dollar.

U.S. monthly inflation was unchanged in May as a modest increase in the cost of services was offset by the largest drop in goods prices in six months, drawing the Fed closer to start lowering rates later this year.

Dubai's main share index (.DFMGI), opens new tab gained 0.2%, with toll operator Salik Co (SALIK.DU), opens new tab rising 2% and utility firm Dubai Electricity and Water Authority (DEWAA.DU), opens new tab was up 1.8%.

In Abu Dhabi, the index (.FTFADGI), opens new tab finished 0.3% higher.

Saudi Arabia's benchmark index (.TASI), opens new tab declined 0.5%, weighed down by a 2.2% fall in Al Taiseer Group (4143.SE), opens new tab and a 1.2% decrease in the country's biggest lender Saudi National Bank (1180.SE), opens new tab.

OPEC oil output rose in June for a second consecutive month, a Reuters survey found on Tuesday, as higher supply from Nigeria and Iran offset the impact of voluntary supply cuts by other members agreed with the wider OPEC+ alliance.

The Qatari index (.QSI), opens new tab closed flat, following a 20-day winning streak.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab was up 0.1%, helped by a 3.3% jump in Talaat Mostafa Holding (TMGH.CA), opens new tab.

Talaat Moustafa Group is to invest $21 billion in the SouthMED tourism development project on Egypt's Mediterranean coast, its chief executive said on Tuesday.

#UAE Real Estate: #AbuDhabi Faces Office Space Shortage as Hedge Funds Rush In - Bloomberg

UAE Real Estate: Abu Dhabi Faces Office Space Shortage as Hedge Funds Rush In - Bloomberg

Abu Dhabi’s quest to attract top hedge funds to its financial center is creating a shortage of office space in the oil-rich emirate.

After struggling to attract tenants for years, the four sleek towers in Abu Dhabi Global Market, which has long sat on Al Maryah Island, are nearly full. The government is now working on expanding the free zone’s jurisdiction to neighboring Al Reem Island in a move that will give it ten times as much space and make it one of the largest financial districts on the planet, stretching 14.4 million square meters (3,558 acres).

As part of that, officials are ordering existing tenants of Al Reem Island to obtain an ADGM license or vacate their offices by the end of the year. About a quarter of those tenants will likely need to move, according to the commercial real estate giant Cushman & Wakefield Core.

"With growing demand for companies to locate within ADGM, occupancy rates in Al Maryah Island have exceeded 95%," a representative for ADGM said in an emailed statement. "Consequently, expansion is the next natural and necessary step to better accommodate the increasing demand of companies seeking to establish a presence in the financial hub of Abu Dhabi."

Those forced to leave the hub will enter a commercial real estate market that’s been transformed by the broader shift in wealth to the capital of the United Arab Emirates, which sits on 6% of the world’s proven oil reserves. The emirate is also home to the world’s richest family and boasts sovereign wealth funds that manage around $1.5 trillion.

#Qatar Airways posts 39% jump in annual profit to record $1.67 billion | Reuters

Qatar Airways posts 39% jump in annual profit to record $1.67 billion | Reuters

Qatar Airways posted a 39% jump in annual net profit to a record 6.1 billion Qatari riyals ($1.67 billion) on Tuesday.

Revenue grew by 6% to 81 billion riyals in the year ended March 31, the government-owned airline said.

It carried more than 40 million passengers and recorded a load factor of 83%.

"Our continued focus on profitability, efficiency and customer experience have been underpinned by a strategic programme of network growth and fleet expansion, resulting in the highest revenues and profit margins in the history of the airline", CEO Badr Mohammed Al-Meer was quoted as saying in a statement from the airline.

Demand for air travel has rebounded since the pandemic, but airlines have been constrained as planemakers struggle to get back to previous production levels due to disrupted supply chains and a safety crisis at Boeing (BA.N), opens new tab.

In May, Al-Meer said aircraft manufacturers like Airbus (AIR.PA), opens new tab and Boeing needed to put more pressure on their suppliers to reduce delivery delays.

The airline last month announced it was in talks with the two planemakers regarding a major wide-body order.

The carrier is also in talks to buy a stake of up to 20% in Bain Capital-owned Virgin Australia, according to a report last week.

Major Gulf markets gain on possible US rate cuts, fuel demand | Reuters

Major Gulf markets gain on possible US rate cuts, fuel demand | Reuters

Most major stock markets in the Gulf edged higher in early trade on Tuesday on hopes for possible U.S. interest rate cuts, while expectations of increasing fuel demand during the summer travel season also boost sentiment.

Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Federal Reserve's policy because most regional currencies are pegged to the U.S. dollar.

U.S. monthly inflation was unchanged in May as a modest increase in the cost of services was offset by the largest drop in goods prices in six months, drawing the Fed closer to start lowering rates later this year.

Saudi Arabia's benchmark index (.TASI), opens new tab gained 0.1%, helped by a 1.8% rise in Al Taiseer Group (4143.SE), opens new tab and a 0.7% increase in oil giant Saudi Aramco (2222.SE), opens new tab.

Meanwhile, the kingdom's energy minister announced on Monday the discovery of seven oil and gas deposits in the kingdom's Eastern Province and Empty Quarter, Reuters reported, citing the official Saudi news agency SPA.

Crude oil - a catalyst for the Gulf's financial markets - rose, building on a strong rally in the previous session.

Gasoline demand in the U.S., the world's biggest oil consumer, is expected to ramp up as the summer travel season picks up with the Independence Day holiday this week.

Dubai's main share index (.DFMGI), opens new tab added 0.4%, driven by a 2% rise in toll operator Salik Co (SALIK.DU), opens new tab.

In Abu Dhabi, the index (.FTFADGI), opens new tab was up 0.1%.

The Qatari benchmark (.QSI), opens new tab inched 0.1% higher, with the Gulf's biggest lender Qatar National Bank (QNBK.QA), opens new tab gaining 0.3%.