Dubai stocks jumped on Monday to their highest level in nearly a decade, helped by gains in real estate and finance stocks, while most other markets in the Gulf inched higher ahead of the US 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. 17-18 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 US dollar.
Dubai’s benchmark stock index surged 3.7% to 5,010, its highest in nearly 10 years. Emirates NBD, Dubai’s largest lender, rose 8%.
Emaar Properties climbed 14.7% to hit its 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 ($2.40 billion).
Meanwhile, HSBC raised its target price for the stock to 13.2 dirhams from 10.8 dirhams.
Saudi Arabia’s benchmark stock index inched up 0.2%, helped by gains in healthcare, utilities and IT stocks.
Dr Soliman Abdel Kader Fakeeh Hospital rose 6%, while Perfect Presentation climbed 2% after the information and communication technology solutions provider known as 2P received a project from the Ministry Of Investment.
The Abu Dhabi benchmark stock index was up 0.2%, aided by a 1.1% gain in conglomerate Alpha Dhabi Holding and a 4.9% rise in Aldar Properties.
The Qatari benchmark stock index rose 0.1%, with most sectors trading in positive territory.
Industries Qatar climbed 0.5%, while Doha Bank gained 0.5% after the lender unveiled a plan to sign a memorandum of understanding with Al Khaleej Takaful Insurance regarding the acquisition of Sharq Insurance by Alkhaleej Takaful Insurance.
Dubai News English
($1 = 3.6727 UAE dirham)
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