Mideast Stocks: UAE markets up on Fed rate cut bets

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Stock markets in the United Arab Emirates rose on Friday, mirroring gains in global equities ahead of a key reading of U.S. inflation that investors largely believe will not alter hopes of a rate cut by the Federal Reserve next week.

Broader MSCI index of Asia-Pacific shares outside Japan and European index, and the STOXX 600 were up 0.3% respectively. U.S. personal consumption expenditures (PCE) price index - the Fed's preferred gauge of inflation - is due later in the day.

A majority of more than 100 economists polled by Reuters forecast the Fed will reduce its key interest rate by 25 basis points at its December 9-10 meeting. Dubai's main index advanced 0.9%, extending gains to a fourth session, lifted by gains in heavyweight real estate and banking sector stocks.

Blue-chip developer Emaar Properties and its construction arm Emaar Development climbed 2.9% and 4.7% respectively, while banking giants Emirates NBD Bank and Dubai Islamic Bank jumped 2.5% and 1.1%. Emaar Properties unveiled 'Dubai Square', a next-generation flagship retail and lifestyle hub at the heart of the AED 180 billion Dubai Creek Harbour mega-development.

Abu Dhabi's benchmark index settled 0.4% higher, supported by a 2.5% rise in Aldar Properties and a 3% hike in energy shipper Adnoc Logistics & Services. Aldar and Mubadala Capital announced Aldar Capital, a platform linking global institutional investors to prime real estate and infrastructure opportunities across the UAE and wider GCC. Its first fund, planned for launch in 2026, is seeking to raise $1 billion in capital.

Dubai index recorded 2.5% gain in the week, its biggest increase in more than four months, while Abu Dhabi closed the week up 2.1%, its best performance since late June, according to LSEG data.

Oil prices - a key catalyst for the Gulf's financial market - was down 0.1% to $63.22 a barrel by 1134 GMT.