Saudi Arabian and Qatari stock markets rose in early trading on Tuesday, as investors looked ahead to the U.S. Federal Reserve's upcoming interest rate decision, while markets in the United Arab Emirates (UAE) declined on tax concerns.

Fed officials appear on track to cut interest rates this month after data showed the U.S. labor market remained strong but continued to cool in November.

The U.S. Fed started its interest rate easing cycle with an unusually large 50 basis point cut in September, followed by a 25 bps cut in November. Traders are pricing an 86% chance of another quarter-percentage-point rate cut from the central bank at its Dec. 17-18 meeting. FEDWATCH

The Fed's decisions impact monetary policy in the Gulf region where most currencies, including Saudi Arabia's, are pegged to the U.S. dollar.

Saudi Arabia's benchmark index .TASI gained 0.5%, with the country's biggest lender Saudi National Bank 1180.SE advancing 2.3% and Riyad Bank 1010.SE increasing 0.9%.

Elsewhere, oil behemoth Saudi Aramco 2222.SE added 0.5%.

In Qatar, the index .QSI was up 0.3%, helped by a 0.4% rise in the Gulf's biggest lender Qatar National Bank QNBK.QA.

Dubai's main share index .DFMGI retreated 1.2%, weighed down by a 2.2% fall in blue-chip developer Emaar Properties EMAR.DU and a 1.2% decline in toll operator Salik Co SALIK.DU.

The UAE will impose a minimum top-up tax (DMTT) of 15% on large multinational companies operating in the country starting in January, the finance ministry said on Monday as the government seeks to boost non-oil revenue.

The UAE, including Dubai, is a hub for multinationals in the Middle East and the tax amendments come a year after the UAE began rolling out a 9% business tax, with exemptions for the many free zones which power its economy.

In Abu Dhabi, the index .FTFADGI was down 0.1%.

(Reporting by Ateeq Shariff in Bengaluru; Editing by Janane Venkatraman)