UAE Stock Markets Rise on Fed Rate Cut Anticipations

September 13th: The United Arab Emirates (UAE) stock markets saw a rise on Friday, mostly due to advances in equities within the banking sector. This was due to investors’ expectations that the US Federal Reserve would reduce interest rates significantly the following week.

Because the majority of the regional currencies are fixed to the US dollar, monetary policy in the Gulf Cooperation Council (GCC), which includes the United Arab Emirates, is mostly in line with choices made by the US Federal Reserve.

As the US Federal Reserve makes decisions on interest rates, GCC central banks reflect these changes to maintain currency stability and avoid significant capital flows that could destabilize their economies.

In Dubai, the main share index ( DFMGI ) saw a 0.9% gain, led by a 1.8% rise in Dubai’s biggest lender Emirates NBD Bank ( ENBD.DU ) and a 0.2% rise in Dubai Islamic Bank ( DISB.DU ), opening a new tab.

Following news that Dubai Taxi Company (DTC.DU), a supplier of mobility solutions, had won 300 additional license plates in a recent auction, the company’s shares increased 2.3% (RTA).

The Abu Dhabi Stock Index (FTFADGI) increased 0.5% as a result of improvements in important industries.

. In particular, the country’s biggest lender First Abu Dhabi Bank ( FAB.AD ), opens a new tab, saw its stock rise 1.8%, and telecom giant e& (formerly known as Etisalat) saw a 1.5% increase.
Abu Dhabi
(.FTFADGI) rose 0.5% to 9,350 points
Dubai
(.DFMGI) rose 0.4% to 4,380 points