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 (.DFMGI), opens new tab jumped 4.5% to 5,048, its highest in 10 years and two months. Emirates NBD(ENBD.DU), opens new tab, Dubai's largest lender, rose 9.3%.
Shares in Emaar Properties (EMAR.DU), opens new tab 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.
The Qatari benchmark index (.QSI), opens new tab extended its rally to a sixth session, gaining 0.4%. Industries Qatar (IQCD.QA), opens new tab 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 (.TASI), opens new tab bounced back after three straight sessions of losses, and rose 0.3%. ACWA Power (2082.SE), opens new tab gained 3.2% and Batic Investments and Logistics Co (4110.SE), opens new tab climbed 4.1%.
Conglomerate Batic said it had reached a memorandum of understanding with Parkin Company (PARKIN.DU), opens new tab to explore smart city parking solutions across Saudi Arabia.
The Abu Dhabi benchmark index (.FTFADGI), opens new tab was up 0.2%, helped by a 3.6% rise in Aldar Properties (ALDAR.AD), opens new tab and a 4.1% rise in Abu Dhabi Commercial Bank (ADCB.AD), opens new tab.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab was up 0.1% with GB Auto (GBCO.CA), opens new tab rising 4.4% and Talaat Moustafa Group (TMGH.CA), opens new tab adding 2.5%.
