Most major Gulf equity market were subdued on Tuesday as investors remained cautious ahead of a U.S. Federal Reserve policymaking meeting, with many fearing interest rates would remain higher for longer.

Investors were awaiting a speech by Fed Chairman Jerome Powell at the Economic Club of Washington later on Tuesday.

The Fed is likely to need to lift the benchmark interest rate above 5% to curtail high inflation.

Most Gulf currencies are pegged to the U.S. dollar, while Saudi Arabia, the United Arab Emirates and Qatar usually mirror U.S. monetary policy changes, exposing the region to the direct impact from any monetary tightening by the Fed.

The Qatari Stock index fell 0.5%, dragged down by losses in financial and material sectors, with the Gulf's largest lender Qatar National Bank dropping 1.9%, while heavyweights Qatar Commercial Bank and Masraf Al Rayan were down 1.2% and 1.1% respectively.

However, Doha Bank gained 1.8% after reporting a rise in full-year net profit of 765.4 million riyals($210.27 million) riyals.

Dubai's benchmark stock index was flat, as gains in industrial stocks were capped by losses in financial stocks. Tolls operator Salik gained 1.5%, while lender Dubai Islamic Bank was down 0.4%.

Utility provider National Central Cooling declined 1.1% and Gulf Navigation Holding dropped 0.8% after it reported a fall in FY net profit.

Saudi Arabia's benchmark stock index opened in negative territory, extending losses to a seventh session. The index was weighed by a 0.6% fall in Al Rajhi Bank, the world's largest Islamic bank by market value.

The luxury real estate developer Retal Urban and Dr Sulaiman Al-Habib Medical fell 0.3% and 1.3%, respectively.

In Abu Dhabi, the benchmark stock index opened down 0.1%, dragged by a 0.3% drop in conglomerate International holding Company and a 0.4% decline in Alpha Dhabi.

(Reporting by Md Manzer Hussain in Bengaluru Editing by Bernadette Baum)