Ahead of the Federal Reserve's interest rate decision, Saudi Arabia and Dubai lead declines in major Gulf stock markets.

As investors await the Federal Reserve’s policy decision, major Gulf exchanges fell. Bahrain-based SICO Ghosh stated that expectations of a possible rate hike by the Federal Reserve are putting pressure on Gulf markets, while weakness in the Asian technology sector has dragged down broader risk appetite. He noted that Brent crude oil prices continue to decline on hopes for improved regional stability, but restricted supply through the Strait of Hormuz—which could limit oil export revenues—continues to weigh on Gulf governments’ spending plans. Saudi Arabia’s Tadawul All Share Index and the Dubai Financial Market General Index both dropped by 0.9%, while Qatar’s QE Index fell by 0.6%, and the Abu Dhabi benchmark index slipped by 0.1%.