Stock markets in the United Arab Emirates ended higher on Friday on expectations that the Federal Reserve was close to the end of its rate-hike cycle.

The Fed left interest rates unchanged on Wednesday but signaled in new projections that borrowing costs may still need to rise by as much as half of a percentage point by the end of this year, as the U.S. central bank reacted to a stronger-than-expected economy and a slower decline in inflation.

Most Gulf currencies are pegged to the dollar and any monetary policy change in the United States is usually mimicked by Saudi Arabia, the United Arab Emirates and Qatar.

Dubai’s main share index advanced 1.5%, buoyed by a 4.6% jump in Emaar Properties after the blue-chip developer unveiled ‘The Oasis’, a $20 billion lifestyle destination, at Burj Khalifa gala with 7,000 residential units.

Most Gulf bourses fall as hawkish Fed hurts mood

Among other gainers, toll operator Salik was up 3.9%.

The Dubai index posted its third weekly gain of 2.5%.

In Abu Dhabi, the index finished 0.7% higher, with Multiply Group rising 0.6%.

The index posted its first weekly gain of 0.8% in seven weeks.

The Abu Dhabi bourse recovered to a certain extent from the lows of this month but remained exposed to some uncertainty, said Ahmed Negm, Head of Market Research MENA at XS.com.

“The market could continue to react to the developments in the oil market in particular as expectations remained volatile to a certain extent.”

=================================== ABU DHABI    rose 0.6% to 9,447 DUBAI        gained 1.5% to 3,789===================================