DUBAI: Most stock markets in the Gulf ended higher on Wednesday, supported by gains in the banking sector, while Egyptian stocks retreated due to a broad selloff in blue-chip shares.

Saudi Arabia’s benchmark index climbed 1.3%, with Al Rajhi Bank gaining over 3% and National Commercial Bank climbing 3.6%.

Oil-rich Gulf Cooperation Council (GCC) countries, whose state coffers have been battered by the COVID-19 pandemic, are set to get some fiscal respite after OPEC and its allies last week agreed to extend most oil output cuts into April.

OPEC’s leader Saudi Arabia said it would extend its voluntary oil output cut of 1 million barrels per day for a third consecutive month and that it would decide in the coming months when to gradually phase it out.

The Qatari index closed 1.5% higher, extending gains for a third consecutive session, led by a 3.6% jump in Qatar Islamic Bank.

Elsewhere, Qatar Electricity and Water rose 1.1% after announcing that it would build a new plant in 2027 with a production capacity of 2,600 megawatts of electricity and 100 million gallons of water per day.

In Dubai, the index added 0.4%, helped by a 1.3% gain in Emirates NBD Bank and a 1.4% increase in Emaar Properties.

The index’s gains, however, were capped by losses at other blue-chip shares including Shariah-compliant lender Dubai Islamic Bank, which fell 0.6%.

S&P Global Ratings said in a report earlier this month that economic recovery in Dubai would be subdued and its gross domestic product in dollar terms would return to the 2019 level only in 2023.

Dubai’s economy - heavily reliant on sectors such as transportation, tourism, and retail shopping - has suffered due to the COVID-19 crisis.

The Abu Dhabi index also concluded 0.4% higher, with telecoms major Etisalat rising 0.8%.

Outside the Gulf, Egypt’s blue-chip index declined 0.8%, with majority of the stocks in the index falling including Commercial International Bank, which fell 1.5%.