The US Central Bank kept interest rates unchanged on Wednesday and expected them to increase by the end of the year, saying that monetary policy is likely to be stricter until 2024 than previously thought.
The monetary policy of the six Gulf Cooperation Council countries is usually guided by the decision of the US Central Bank, with most of the region’s currencies tied to the dollar.
Dubai’s main stock index advanced 1 percent, with Emaar Properties shares rising 6.4 percent.
In Abu Dhabi, the index rose 0.2 percent.
Vijay Valecha, chief investment officer at Century Financial, told Reuters that rising interest rates usually have a negative impact on economic growth, but the UAE is in a better position to absorb interest rate hikes compared to other major economies thanks to its strategic location, diversification and thriving tourism. .
The Qatari index increased 0.3 percent, with the shares of Industries Qatar Petrochemical Company rising 0.9 percent and the shares of Qatar Milaha Company rising 3.3 percent.
As for the Saudi index, it fell by 1 percent, affected by the decline in Al Rajhi Bank shares by 1.5 percent and the decline in the shares of the giant oil company Saudi Aramco by 0.5 percent.
Outside the Gulf region, Egypt’s leading stock index rose 1.4 percent, recording its highest levels, with most stocks on the index rising, including Commercial International Bank, which rose 1.4 percent.
The Bahrain index increased 0.3 percent to 1,930 points. The Sultanate of Oman index fell 0.4 percent to 4,677 points, while the Kuwait index lost 0.4 percent to 7,582 points.
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