Dubai’s benchmark stock index reached its highest level in over a decade on Wednesday, rising 0.1% to close at 5,084, marking its highest point in 10 years and three months.
Other Gulf markets were subdued as investors anticipated fewer rate cuts by the U.S. Federal Reserve in the coming year.
Emirates NBD gained 1.2%, while supermarket operator Spinneys 1961 Holding rose 1.3%. Shuaa Capital advanced 1.4% after its board approved a deal with a senior creditor to restructure 208 million dirhams ($56.64 million) in debt facilities.
Qatar’s benchmark index fell 0.6%, marking its third consecutive session of losses. Qatar National Bank dropped 0.8%, and Qatar Gas Transport declined 1.5%.
Saudi Arabia’s index closed 0.2% lower, with Al Rajhi Bank falling 0.7% and MBC Group slipping 3.3%. Red Sea International rose 6.5% after signing a 318.9 million riyals contract with Modern Building Leaders Co.
In Abu Dhabi, the index dropped 0.2%, ending a three-session winning streak. International Holding fell 1%, while Alpha Dhabi Holding declined 0.9%.
Outside the Gulf, Egypt’s blue-chip index rose 0.1%, supported by gains in Alexandria Container (4.7%) and El Sewedy Electric (0.9%). The IMF reached a staff-level agreement with Egypt, potentially unlocking a $1.2 billion disbursement.
The Fed’s decisions on rate cuts and inflation forecasts continue to influence Gulf monetary policies due to currency pegs to the U.S. dollar. Traders currently expect about 35 basis points of easing in 2025.
