Dec 15 Reuters Stock markets in the United Arab Emirates closed higher on Friday on rising oil prices and after the Federal Reserve indicated earlier in the week it is likely to cut borrowing costs next year.

Oil prices, a major driver for Gulf economies, were on track to notch up their first weekly rise in two months after a bullish forecast from the International Energy Agency IEA on oil demand for next year, with Brent futures rising 23 cents to 76.84 a barrel at 1123 GMT.

The U.S. Federal Reserve left interest rates unchanged on Wednesday and U.S. central bank chief Jerome Powell said the historic tightening of monetary policy is likely over as inflation falls faster than expected.

Monetary policy in the sixmember Gulf Cooperation Council GCC, including the United Arab Emirates, is usually guided by Fed policy decisions because most regional currencies are pegged to the U.S. dollar.

In Dubai, the main share index rose 0.5, in its fourth positive session in a row, led by solid gains in financial stocks, with Emirates NBD Bank, Dubai39;s largest lender inching up 1.5 and Dubai Investments climbing 3.6.

The index notched up a 1.25 weekly gain after a third consecutive weekly loss.

Abu Dhabi39;s index added 0.2, bolstered by a nearly 2 hike in Abu Dhabi Commercial Bank.

The lender on Thursday said it sold its 80 stake in Abu Dhabi Commercial Properties ADCP to Nine Yards Plus Holding in a deal valued at 591 million dirhams 160.94 million

First Abu Dhabi Bank, the…