Most stock markets in the Gulf ended higher on Tuesday, tracking oil prices, with the Dubai index at its highest in nearly eight years.

Prices of oil - which fuels the Gulf’s economy – ticked higher as markets weighed supply cuts for August by top exporters Saudi Arabia and Russia against a weak global economic outlook.

On Monday, Saudi Arabia said it would extend its voluntary output cut of 1 million barrels per day (bpd) to August, while Russia and Algeria volunteered to lower their output and export levels for August by 500,000 bpd and 20,000 bpd respectively.

Saudi Arabia’s benchmark index gained 0.6%, with Saudi Awwal Bank rising 3.4%, while Saudi Airline Catering Co surged 9.8% after it announced a contract with Red Sea Global Co valued at about 6.3 billion riyals ($1.7 billion).

Dubai’s main share index advanced 1.4% to hit its highest in nearly eight years, buoyed by a 3.9% jump in top lender Emirates NBD, which is trading near a record high.

Elsewhere, blue-chip developer Emaar Properties edged 0.2% higher, hitting its highest since 2018.

Dubai leads most Gulf markets higher; Qatar falls

The Dubai bourse extended its gains with traders reacting to an improved credit rating of Emaar Properties, as well as new economic efforts announced by the federal government, said Ahmed Negm, head of market research MENA at XS.com.

“Both events have boosted sentiment and could help propel the market to the upside,” he said.

The United Arab Emirates (UAE) will set up a new federal ministry of investment to develop the Gulf state’s investment strategy both globally and domestically, as it contends with growing economic competition from neighbours.

The ministry’s aims would include stimulating the investment environment in the UAE and to make its legislation and procedures more competitive to attract global investment, Sheikh Mohammed said.

In Abu Dhabi, the index was up 0.4%.

Outside the Gulf, Egypt’s blue-chip index – which resumed trading after a five-session break - dropped 1.1%, hit by a 2% fall in top lender Commercial International Bank.

========================================= SAUDI ARABIA     rose 0.6% to 11,619 ABU DHABI        up 0.2% to 9,583 DUBAI            gained 1.4% to 3,931 QATAR            added 0.7% to 10,254 EGYPT            lost 1.1% to 17,466 BAHRAIN          was up 0.1% to 1,958 OMAN             rose 0.1% to 4,795 KUWAIT           increased 1.3% to 7,957=========================================