Saudi Arabia's air defences intercepted and destroyed a Houthi drone south of Mecca before it entered prohibited airspace over the holy city, a spokesperson for the Saudi-led military coalition in Yemen said, as conflict continued to spread across the Middle East.
Vessel transits through the Strait of Hormuz remained in the single digits, with four ships recorded on Tuesday versus seven a day earlier, according to preliminary shipping data released on Wednesday.
Saudi, Qatar, Abu Dhabi and Dubai market moves
Saudi Arabia's benchmark index .TASI slipped 0.2%, weighed down by information technology and consumer staples shares. SABIC Agri-Nutrients 2020.SE fell 1.2%, while low-cost carrier Flynas 4264.SE dropped 2.2%.
Umm Al Qura for Development and Construction 4325.SE rose 1% after the developer said it had sold a plot of land for 168.9 million riyals ($45.0 million).
Qatar's benchmark index .QSI declined 0.6%, with all constituents in negative territory. Qatar Islamic Bank QISB.QA lost 1.1%, while Qatar National Bank QNBK.QA, the region's largest lender, eased 0.5%.
Abu Dhabi's benchmark .FTFADGI edged down 0.1%, pressured by a 0.6% fall in Abu Dhabi Commercial Bank ADCB.AD and a 1.7% decline in Anan Investment ANAN.AD. Al Seer Marine ASM.AD surged 7.4% after the company said it had completed the transfer of shares in AD Ports to Abu Dhabi Developmental Holding Company (ADQ), following a board-approved voluntary conditional cash offer of 6.25 dirhams per share.
Dubai's benchmark index .DFMGI gained 0.2%, with most sectors advancing. Emirates NBD ENBD.DU, Dubai's largest lender, rose 1.4%, while road-toll operator Salik SALIK.DU added 0.8%.
The Federal Reserve's two-day policy meeting concludes later on Wednesday, when the U.S. central bank is expected to announce its latest interest rate decision. Traders have priced in a 94.5% probability of a rate hike, according to CME's FedWatch Tool, compared with 33.1% a month earlier.
Gulf markets typically track changes in U.S. monetary policy expectations because most regional currencies are pegged to the dollar.
Gulf equities open subdued amid conflict and Fed watch
Gulf stock markets were subdued in early trade on Wednesday as investors remained cautious amid escalating regional conflict and awaited the U.S. Federal Reserve's interest rate decision later in the day.
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