Major Gulf markets track oil, Asian shares higher

Major stock markets in the Gulf rose in early trade on Thursday, tracking gains in oil prices and Asian shares, with the Dubai index outperforming the region buoyed by Emaar Properties, Reuters reported.

MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS edged up 0.7%, with investors awaiting the U.S. Federal Reserve’s annual Jackson Hole conference for clues on how sharp future interest rate hikes might be.

The Federal Reserve’s annual monetary policy conference in Jackson Hole, Wyoming is due to start on Friday.

Dubai’s main share index .DFMGI advanced 1.1%, with Emaar Properties EMAR.DU leaping as much as 4.7% to 6.25 dirhams, hitting its highest level since early May, on plans to lift the foreign ownership limit.

Shareholders are to also vote on Sept. 21 on the acquisition of certain assets of Dubai Holding for a mandatory convertible bond of 3.75 billion dirhams ($1.02 billion).

The company also entered a definitive deal to divest 100% of its fashion e-commerce venture Namshi to Noon, an e-commerce firm, for $335.2 million.

Saudi Arabia’s benchmark index .TASI gained 0.5%, led by a 0.7% rise in Al Rajhi Bank 1120.SE and a 2.7% jump in Saudi Arabian Mining Co 1211.SE.

Oil prices, a key catalyst for the Gulf’s financial markets, rose on mounting supply tightness concerns amid disruptions to Russian exports, the potential for major producers to cut output, and the partial shutdown of a U.S. refinery.

Brent crude LCoc1 rebounded above $100 after Saudi Arabia floated the idea of OPEC+ output cuts to support prices.

In Abu Dhabi, the index .FTFADGI added 0.2%, helped by a 0.3% gain in the United Arab Emirates’ biggest lender First Abu Dhabi Bank FAB.AD.

The Qatari index .QSI added 0.3%, with petrochemical maker Industries Qatar IQCD.QA climbing 1.7%.