Most Gulf markets retreat as Fed uncertainty persists | Reuters

Most Gulf markets retreat as Fed uncertainty persists | Reuters

Most stock markets in the Gulf ended lower on Monday as investors exercised caution ahead of key U.S. inflation data later in the week that could provide clarity on the size of the Federal Reserve's likely interest rate cut this month.

Investors analysed last week's mixed U.S. jobs data and comments from Fed officials, which suggested a weak labour market but without sufficient justification for a 50-basis point interest rate cut.

The U.S. inflation report on Wednesday will be a key indicator that could shift market expectations for the outcome of the Fed's Sept. 17-18 meeting.

Investors wondered whether the mixed U.S. August payrolls report would be enough to tip the Fed into cutting rates by an outsized 50 bps when it meets next week. FEDWATCH

Monetary policy in the six-member Gulf Cooperation Council (GCC), including the UAE, is usually guided by the Fed's policy decisions because most currencies in the region are pegged to the dollar.

Saudi Arabia's benchmark index (.TASI), opens new tab dropped 0.2%, with Al Taiseer Group (4143.SE), opens new tab losing 0.5%, and Riyad Bank (1010.SE), opens new tab retreating 2.1%.

Dubai's main share index (.DFMGI), opens new tab decreased 0.3%, hit by a 2.4% decline in blue-chip developer Emaar Properties (EMAR.DU), opens new tab.

In Abu Dhabi, the index (.FTFADGI), opens new tab declined 1%, weighed down by a 2.2% slide in Emirates Telecommunications Group (EAND.AD), opens new tab.

The Qatari benchmark (.QSI), opens new tab closed 0.4% lower, with the Gulf's biggest lender Qatar National Bank (QNBK.QA), opens new tab falling 0.6%.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab added 0.3%, helped by a 7.9% jump in Egypt Kuwait Holding (EKHO.CA), opens new tab as the firm signed market maker agreement with National Investment Co.

Egypt's inflation is forecast to have declined for a sixth month in August, helped by a favourable base effect, but some analysts say it is likely to have increased month on month after a series of government-led price hikes.

#Oman’s OQ Said to Eye $2 Billion from Exploration Unit IPO - Bloomberg

Oman’s OQ Said to Eye $2 Billion from Exploration Unit IPO - Bloomberg

Oman’s state energy company OQ SAOC is looking to raise about $2 billion by selling shares in its exploration and production business in an initial public offering that’s set to be the Gulf country’s biggest on record.

The deal would value all of OQ Exploration & Production SAOG at about $8 billion, according to two people with knowledge of the matter, who declined to be identified discussing confidential information. OQ plans to sell a 25% stake in OQEP, as the business is known, it said Monday, without disclosing details on valuation.

To help attract investors, the firm plans to pay out $600 million in annual dividends each year from 2024 through 2026. In 2025 and 2026, the company also plans to pay a performance-linked dividend equal to 90% of cash flow after investments, according to a statement.

The IPO — and the promise of dividends — comes as Brent crude last week fell to the lowest level since 2021 on concerns over global demand. Oman, Saudi Arabia and the United Arab Emirates are all members of the OPEC+ producers’ group which has been cutting production for several years to help prop up the market.

#UAE's GDP grew estimated 3.4% in Q1- state news agency | Reuters

UAE's GDP grew estimated 3.4% in Q1- state news agency | Reuters

The United Arab Emirates' economy grew 3.4% in the first quarter of 2024 compared with the same period the previous year, according to preliminary government estimates reported by the state news agency WAM on Monday.

The UAE's gross domestic product reached 430 billion dirhams ($117 billion) in Q1, with non-oil GDP growing 4% year-on-year during the period, WAM reported, citing figures from the Federal Competitiveness and Statistics Centre.

Trade activities, manufacturing, and financial and insurance services were among the biggest contributors to non-oil GDP, according to the report.

The UAE, one of the world's biggest oil exporters, has been increasingly focused on diversifying economic sectors and revenue sources away from hydrocarbons, and is seen as the Gulf region's tourism and commercial hub.

The International Monetary Fund said earlier this year that economic growth in the Gulf state was broad-based, and driven by solid domestic activity in sectors such as tourism, construction and financial services.

The Fund forecasts GDP growth in 2024 at 4%, higher than the 3.5% projected in its last Regional Economic Outlook report published in April.

A Reuters poll of economists in July forecast GDP growth in the UAE of 3.7% in 2024 followed by 4.2% in 2025, boosted by non-oil sectors such as tourism as well as a gradual increase in oil production.