Mideast Stocks: Saudi shares rise on upbeat economic data, Dubai stocks fall

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Saudi Arabia shares rose on Monday helped by strong economic data and some upbeat corporate results, while the Dubai index fell ahead of the U.S. Federal Reserve meeting.

The benchmark Saudi index inched up 0.3%, erasing previous session's losses. The index was lifted by a 2.8% rise in Saudi National Bank's shares. Saudi oil giant Aramco rose 0.4%, extending gains.

The world's largest oil producer is scheduled to report results on Tuesday. The Gulf region's largest economy, Saudi Arabia's gross domestic product expanded by 8.6% in the third quarter compared with the same period in 2021, according to initial government estimates on Monday.

In Abu Dhabi, the index rose 1.2 % with the country's biggest lender First Abu Dhabi Bank up 3.5%. However, the United Arab Emirates' other stock exchange index remained in the red, dragged down by a drop of 1.6% in Dubai Electricity and Water Authority and a fall of 0.7% in real estate developer Emaar Properties.

The Dubai market declined as investors worldwide remain cautious ahead of the Fed's interest rate decision, said Wael Makarem, senior market strategist, MENA at Exness.

"The market could trade sideways until then. It could however find some support from the coming IPOs of Taaleem and Empower."

Outside the Gulf, Egypt's blue-chip index added 2.5%, continuing its rally. Shares in Egypt Aluminum rose 1.4% after the company reported a higher quarterly profit.

Egypt's move to raise interest rates is a step in the right direction and a flexible exchange rate will help protect its economy from shocks at a time of tightening global financial conditions, an International Monetary Fund official said.