Mideast Stocks: Gulf bourses mixed as Saudi stocks fall, Dubai gains

Mideast Stocks: Gulf bourses mixed as Saudi stocks fall, Dubai gains

Saudi Arabia's stock market was the worst performer among Gulf bourses that were mixed on Monday amid worries of rate hikes by the U.S. Federal Reserve. Two Fed policymakers on Friday signaled that interest rates would need to go higher after a flurry of U.S. data suggested the world's largest economy is holding up far better than expected.

Most Gulf Cooperation Council countries, including Qatar, Saudi Arabia and the United Arab Emirates have their currencies pegged to the U.S. dollar and follow the Fed's policy moves closely.

The benchmark index in Saudi Arabia dropped 1.2%, dragged down by losses in most sectors. Shares of the world's largest Islamic bank by assets, Al Rajhi Bank, fell 1.3% and Riyad Bank was down 2.1%. However, shares of Etihad Etisalat Co jumped 5.7%, its best intraday gain since June, after the telecom operator reported a 54.6% increase in full-year net profit.

Dubai's benchmark index inched up 0.1%, lifted by gains in banking, real estate and industry sectors. Lender Emirates NBD rose 1.5% and shares of toll-road operator Salik Co increased 0.7%. In Abu Dhabi, the index fell marginally, dragged down by a 1.6% loss in Abu Dhabi National Oil Company for Distribution and a 1.3% decline