MIDEAST STOCKS-Most Gulf markets gain ahead of earnings; Saudi bourse flat

By Ateeq Shariff

Jan 20 (Reuters) - Most Gulf stock markets closed higher on Tuesday, with Dubai ending at its strongest level in almost two decades, as investors looked ahead to earnings and absorbed softer oil prices.

Saudi stocks, however, were flat to slightly lower, weighed by profit-taking after the recent rally.

Dubai's main share index .DFMGI gained 0.5%, led by a 0.7% rise in blue-chip developer Emaar Properties EMAR.DU and a 0.8% increase in utility firm Dubai Electricity and Water Authority DEWAA.DU.

Further gains are possible if fourth-quarter earnings reports lift sentiment. Strong results could add momentum to a market that's already underpinned by healthy fundamentals and upbeat growth expectations for the year, said Daniel Takieddine, co-founder and CEO of Sky Links Capital Group.

Saudi Arabia's benchmark index .TASI concluded flat after a 3.3% rally last week triggered by the government's announcement that it would liberalise capital market access for foreign investors, starting next month.

Meanwhile, oil prices - a catalyst for the Gulf's financial markets - were steady as investors monitored U.S. President Donald Trump's tariff threats against European states opposing his push to acquire Greenland, while firmer global economic growth expectations and a weaker U.S. dollar gave a floor to prices.

According to Takieddine, cautious sentiment prevails as investors await upcoming fourth-quarter earnings reports following a few early releases. "Meanwhile, volatility in oil prices has slightly impacted sentiment, keeping the market's immediate direction unclear."

In Abu Dhabi, the index .FTFADGI rose 0.3%, helped by a 0.3% gain in ADNOC Gas ADNOCGAS.AD.

India signed a $3 billion LNG deal with the UAE on Monday, making it the UAE's top customer. ADNOC Gas will supply Hindustan Petroleum HPCL.NS with 0.5 million metric tons per year for 10 years as both countries move to deepen trade and defence ties.

Elsewhere, Abu Dhabi Islamic Bank ADIB.AD - the emirate's largest sharia-compliant lender - advanced 1.2%, ahead of its fourth-quarter earnings release due on Wednesday.

The Qatari index .QSI edged 0.1% higher, supported by a 1.3% rise in petrochemical maker Industries Qatar IQCD.QA. Qatar Gas Transport QGTS.QA added 0.8%, ahead of its earnings announcement later in the day.

Outside the Gulf, Egypt's blue-chip index .EGX30 advanced 1.9%, hitting a new record high.

Last week, the country received 1 billion euros from the European Union and is set to receive a total of 3 billion euros in two tranches in 2026, the International Cooperation Ministry said. The grant is part of a 5 billion euro ($5.87 billion) macro-financial assistance package from the EU.

($1 = 0.8522 euros)