Major stock markets in the Gulf rose in early Thursday trade after most central banks in the region cut their key interest rates following a larger than usual policy easing by the U.S. Federal Reserve.

The Fed cut its benchmark rate by 50 basis points (bps) on Wednesday, with policymakers seeing another half a percentage point fall by the end of this year.

Saudi Arabia's benchmark index gained 0.4%, with Al Rajhi Bank rising 1.1%.

The kingdom, the region's biggest economy, cut its repurchase agreement (Repo) rate and reverse repo rate by 50 bps each to 5.5% and 5.0% respectively, according to a central bank statement.

Among other gainers, oil behemoth Saudi Aramco was up 0.6%.

Oil prices - a catalyst for the Gulf's financial markets - rose after the U.S. rate cut, but concerns over global demand lingered and capped gains.

Dubai's main share index added 0.5%, led by a 1.2% increase in blue-chip developer Emaar Properties.

In Abu Dhabi, the index edged 0.2% higher.

The United Arab Emirates' central bank also reduced its base rate on the overnight deposit facility by half a percentage point to 4.90%.

Monetary policy in the Gulf Cooperation Council (GCC) often aligns with the Fed's decisions as most regional currencies are pegged to the U.S. dollar.

The Qatari benchmark added 0.4%, driven by a 0.6% rise in the Gulf's biggest lender Qatar National Bank.

Qatar's central bank cut key interest rates by 55 basis points on Wednesday.

(Reporting by Ateeq Shariff in Bengaluru; Editing by Mark Potter)