Mideast Stocks: Most Gulf markets decline ahead of Fed meet; Saudi bourse rebounds

Mideast Stocks: Most Gulf markets decline ahead of Fed meet; Saudi bourse rebounds

Most stock markets in the Gulf fell in early trade on Tuesday as investors remained cautious ahead of the U.S. Federal Reserve meeting which could set the tone for the year ahead, while the Saudi index rebounded from a 20-month low.

The Fed is widely expected to raise rates by 50 basis points at its last meeting of 2022 on Wednesday. Investors will also focus on the central bank's updated economic projections and Fed Chair Jerome Powell's press conference.

Most Gulf Cooperation Council countries, including Saudi Arabia, the United Arab Emirates and Qatar, have their currencies pegged to the U.S. dollar and follow the Fed's policy moves closely, exposing the region to a direct impact from monetary tightening in the world's largest economy.

Dubai's main share index fell 0.4%, hit by a 1.5% fall in the top lender Emirates NBD Bank and a 1.3% decrease in utility firm Dubai Electricity and Water Authority .

Separately, Nomura Holdings' global wealth management business is opening a branch in Dubai as it expands into the fast growing Middle East hub to cater to an affluent pool of clients.

In Abu Dhabi, the index dropped 0.9%, on course to decline for a sixth session, with the country's biggest lender