MIDEAST STOCKS-Emaar lifts Dubai to over decade-high; most Gulf shares slip

By Md Manzer Hussain

Dec 17 (Reuters) - Dubai's benchmark share index surged on Tuesday to its highest level in more than a decade, while most other markets in the Gulf tracked global equities lower ahead of the U.S. Federal Reserve's monetary policy meeting later this week.

Dubai's benchmark stock index .DFMGI extended its rally to a second straight session, rising 0.6% to 5,080, its highest in 10 years and three months.

Shares of Emaar Properties EMAR.DU were up for a second day, rising 15% to their highest in nearly 19 years, after the developer said on Monday it had planned to declare dividends at 100% of share capital for 2024 and the next few years, amounting to 8.80 billion dirhams ($2.4 billion).

The Qatari benchmark index .QSI snapped its six-session winning streak and slipped 1.1%, with almost all stocks in the red. Industries Qatar IQCD.QA dropped 2.7% and Qatar Islamic Bank QISB.QA slid 1.1%.

Saudi Arabia's benchmark stock index .TASI slipped 1.2%, with all sectors in the negative territory. Oil major Saudi Aramco 2222.SE dropped 1.2% and Almarai 2280.SE lost 4.3%.

Savola Group 2050.SE soared 10% after the Kingdom's largest foods producer said on Sunday its shareholders approved the board's proposal to reduce capital and compensate by paying 8.34 billion riyals ($2.22 billion) in the form of Almarai shares.

The Abu Dhabi benchmark index .FTFADGI was down 0.2%, pressured by losses in most sectors. Aldar Properties ALDAR.AD lost 1.1% while ADNOC Gas ADNOCGAS.AD slid 1.2% after the natural gas producer appointed a new CEO.

Among other fallers, ADNOC Drilling ADNOCDRILL.AD was down 0.5%. The drilling unit of state-owned energy giant ADNOC, said it has formed an 'unconventional' energy venture with SLB, Patterson-UTI.

Meanwhile, the U.S. central bank is expected to cut rates by a quarter of a percentage point at its Dec. 17-18 meeting, which will also provide an updated look at how much further Fed officials think they will reduce rates in 2025 and perhaps into 2026.

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

Outside the Gulf, Egypt's blue-chip index .EGX30 was down 0.6%, weighed down by a 2% drop in Commercial International Bank COMI.CA and a 3.6% fall in Abu Qir Fertilizers ABUK.CA.

($1 = 3.7573 riyals)

(Reporting by Md Manzer Hussain; Editing by Mohammed Safi Shamsi)

((mdmanzer.hussain@thomsonreuters.com; +91 8067498453;))