Mideast Stocks: Dubai bourse rises in a choppy trade; Abu Dhabi extends losses

Mideast Stocks: Dubai bourse rises in a choppy trade; Abu Dhabi extends losses

Dubai's stock market, in a choppy trade, ended higher on Friday ahead of the U.S. Federeal Reserve meeting next week, while the Abu Dhabi index extended losses for a fourth session on price corrections.

Fed policymakers meet next week and are likely to announce a 50 basis point hike in the U.S. central bank's lending rate, while indicating a slower pace of future rate hikes.

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.

The main share index in Dubai added in a volatile trade added 0.3%, ending three sessions of losses, helped by a 1.7% fall in utility firm Dubai Electricity and Water Authority.

The Dubai bourse remained volatile while traders remained cautious ahead of the Fed's meeting, Robert Woolfe, COO at Emporium Capital, said. "In the meantime, the main index could stay around current levels."

Separately, the United Arab Emirates issued a decree-law imposing a corporate tax at a 9% rate for taxable business income exceeding AED 375,000 ($102,000). The tax will apply to all firms from June.