Bourses in United Arab Emirates closed lower on Friday, tracking global equities as aggressive interest rate hikes around the world made investors nervous about global economic growth.

The Central Bank of the United Arab Emirates said on Wednesday it increased its base rate by three quarters of a percentage point to 3%, moving in parallel with the U.S. Federal Reserve’s biggest hike since 1994 as its currency is pegged to the dollar.

In Abu Dhabi, the index declined 0.6% as the country’s largest lender First Abu Dhabi Bank dropped 1.1%, while Aldar Properties slipped dipped 2.5%.

However, Abu Dhabi National Hotel jumped 2.8% after the Abu Dhabi Securities Exchange implemented increase in company’s foreign ownership limit to 100%.

Gulf bourses end mixed ahead of Fed meeting

The Abu Dhabi stock market declined as the atmosphere among investors turns to caution while oil prices recorded some volatility. The market could see additional decreases under these conditions, said Eman AlAyyaf, CEO of EA Trading.

Dubai’s main stock index slipped 0.6%, pressured by a 2.8% fall in blue-chip developer Emaar Properties and 1.9% decrease in budget carrier Air Arabia.

Amongh other stock, Shuaa Capital lost 3.1%, its biggest intraday fall since November 11, 2021, after the firm replaced CFO Joachim Mueller with Gunshyam kripa.

ABU DHABI down 0.6% to 9,391 pointsDUBAI fell 0.6% to 3,262 points