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Major stock markets in the Gulf rose in early trade on Thursday, as the non-oil private sector showed steady growth, while investors also awaited a U.S. job report for clues on how soon the Federal Reserve could lower borrowing costs.
Saudi Arabia's benchmark stock index rose 0.4%, with most sectors in the green, led by finance, materials and energy.
Saudi National Bank, the kingdom's largest lender by assets, gained 1.6% and oil major Saudi Aramco added 0.6%.
The retailer Fawaz Abdulaziz Al Hokair & Company, the index's best performer, climbed 7% and Saudi Basic Industries added 1.3%.
The expansion in Saudi Arabia's non-oil private sector activity accelerated in June, driven by robust client demand and a surge in hiring, a survey showed on Thursday.
The seasonally adjusted Riyad Bank Saudi Arabia Purchasing Managers' Index (PMI) rose to a three-month high of 57.2 from May's 55.8, putting it further above the 50-point line denoting growth.
The Abu Dhabi benchmark index rose 0.2%, lifted by a 4% advance in Presight AI and a 3.2% gain in Space42.
Dubai's benchmark stock index advanced 0.6%, supported by gains in real estate, utilities and industry sectors. Emaar Properties added 1.5% and tolls operator Salik rose 1.7%.
The UAE's non-oil private sector grew steadily in June even as regional tensions weighed on demand, and firms ramped up output to tackle backlogs, a survey showed on Thursday.
The Qatari benchmark index was little changed with Qatar Gas Transport adding 0.5% while Qatar Islamic Bank, shedding 0.7%.
The market's focus now will turn to a key U.S. jobs report later in the day that may justify imminent rate cuts by the Federal Reserve. Futures imply a 25% probability for a rate cut this month from the Fed.
The U.S central bank's decisions have a significant impact on the Gulf region's monetary policy, as most currencies there are pegged to the U.S. dollar.
(Reporting by Md Manzer Hussain; Editing by Shailesh Kuber)