UAE bourses rise despite poor soil, rate-hike bets. Investors appeared to shrug off a drop in oil prices on Friday as fears over sluggish global economic growth and more aggressive interest rate hikes drove UAE stock markets higher.
On Thursday, U.S. Federal Reserve Chair Jerome Powell said the central bank would raise interest rates at a “careful pace” as policymakers near a historic monetary policy tightening.
UAE, Saudi Arabia, and Qatar follow U.S. monetary policy because most Gulf currencies are pegged to the dollar.
By 1110 GMT, Brent crude lost 91 cents, or 1.2%, to $73.23 a barrel, a crucial driver for the Gulf economy.
Dubai Electricity and Water Authority (DEWAA.DU) rose 1.9%, while Emirates NBD Bank, Dubai’s largest lender, rose 1.1%, lifting the benchmark index (.DFMGI) 0.4%.
Emaar Properties (EMAR.DU) climbed 0.8%. The Dubai index gained 0.1% for a third week.
The country’s largest lender, First Abu Dhabi Bank (FAB.AD), jumped more than 1% while Alpha Dhabi Holding (ALPHADHABI.AD) rose 3.1%, lifting Abu Dhabi’s index (.FTFADGI) 0.3% for the sixth straight day.
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