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 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. 17-18 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 surged 3.7% to 5,010, its highest in nearly 10 years. Emirates NBD (ENBD.DU), opens new tab, Dubai's largest lender, rose 8%.
Emaar Properties (EMAR.DU), opens new tab 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 (.TASI), opens new tab inched up 0.2%, helped by gains in healthcare, utilities and IT stocks. Dr Soliman Abdel Kader Fakeeh Hospital (4017.SE), opens new tab rose 6%, while Perfect Presentation (7204.SE), opens new tab climbed 2% after the information and communication technology solutions provider known as 2P received a project from the Ministry Of Investment. The video player is currently playing an ad.
The Abu Dhabi benchmark stock index (.FTFADGI), opens new tab was up 0.2%, aided by a 1.1% gain in conglomerate Alpha Dhabi Holding (ALPHADHABI.AD), opens new tab and a 4.9% rise in Aldar Properties (ALDAR.AD), opens new tab.
The Qatari benchmark stock index (.QSI), opens new tab rose 0.1%, with most sectors trading in positive territory. Industries Qatar (IQCD.QA), opens new tab climbed 0.5%, while Doha Bank (DOBK.QA), opens new tab gained 0.5% after the lender unveiled a plan to sign a memorandum of understanding with Al Khaleej Takaful Insurance Co (KINS.QA), opens new tab regarding the acquisition of Sharq Insurance by Alkhaleej Takaful Insurance.
