Most stock markets in the Gulf fell in early trade on Tuesday as investors remained cautious ahead of the U.S. Federal Reserve meeting which could set the tone for the year ahead, while the Saudi index rebounded from a 20-month low.
The Fed is widely expected to raise rates by 50 basis points at its last meeting of 2022 on Wednesday. Investors will also focus on the central bank's updated economic projections and Fed Chair Jerome Powell's press conference.
Most Gulf Cooperation Council countries, including Saudi Arabia, the United Arab Emirates and Qatar, have their currencies pegged to the U.S. dollar and follow the Fed's policy moves closely, exposing the region to a direct impact from monetary tightening in the world's largest economy.
Dubai's main share index (.DFMGI) fell 0.4%, hit by a 1.5% fall in the top lender Emirates NBD Bank (ENBD.DU) and a 1.3% decrease in utility firm Dubai Electricity and Water Authority (DEWAA.DU).
Separately, Nomura Holdings' (8604.T) global wealth management business is opening a branch in Dubai as it expands into the fast growing Middle East hub to cater to an affluent pool of clients.
In Abu Dhabi, the index (.FTFADGI) dropped 0.9%, on course to decline for a sixth session, with the country's biggest lender First Abu Dhabi Bank (FAB.AD) falling 1.8%.
However, Americana Restaurants International (AMR.AD) gained 1.4%, stretching gains from the previous session when it debuted.
Americana - which operates the franchises for KFC, Pizza Hut, Hardee's and Krispy Kreme, among others - raised $1.8 billion in an initial public offering and a subsequent dual listing in Abu Dhabi and Riyadh.
Saudi Arabia's benchmark index (.TASI) gained 1.5%, a day after hitting its lowest in 20 months, led by a 2.2% rise in Retal Urban Development Co (4322.SE).
Oil prices - a key catalyst for the Gulf's financial markets - extended gains as a key pipeline bringing supply to the United States remained shut, adding to concerns about potential tightness in the world's biggest crude consumer.
