Dubai's benchmark share index jumped on Tuesday to its highest level in more than a decade, while most other markets in the Gulf were muted as investors braced for the U.S. Federal Reserve's monetary policy meeting.

Markets have almost completely priced in a rate cut at the conclusion of the Fed's policy meeting on Wednesday, but the rate trajectory for next year has become less certain in light of recent U.S. data that showed sticky inflation in a relatively robust economy.

The Fed's decisions impact monetary policy in the Gulf, where most currencies, including the dirhams, are pegged to the U.S. dollar.

Dubai's benchmark stock index (.DFMGI), opens new tab extended its surge to a second straight session, rising 0.6% to 5,080, its highest in 10 years and three months.

Shares of Emaar Properties (EMAR.DU), opens new tab were up for a second day, rising 15% to their highest in nearly 19 years, after the blue-chip developer said on Monday it had planned to declare dividends at 100% of share capital for 2024 and next few years, amounting to 8.80 billion dirhams ($2.4 billion).

The Abu Dhabi benchmark index (.FTFADGI), opens new tab was down 0.1% with Alpha Dhabi (ALPHADHABI.AD), opens new tab falling 1.1%, and Abu Dhabi Commercial Bank (ADCB.AD), opens new tab shedding 1%.

Space42 (SPACE42.AD), opens new tab, however, climbed 4.5% after the space-tech company has signed an 18.7 billion dirham contract with the UAE government to provide secure communication services for a further 17 years beyond 2026 until 2043.

Saudi Arabia's benchmark stock index (.TASI), opens new tab slipped 0.6%, with almost all sectors in the red. Al Rajhi Bank (1120.SE), opens new tab dropped 1% and Saudi Arabian Mining Co (1211.SE), opens new tab lost 1.5%.

Arriyadh Development (4150.SE), opens new tab climbed 4.4% after the developer said it has established a new real estate investment fund to develop an over 3.5 billion-riyal ($932 million) project in Riyadh.

Meanwhile, Saudi healthcare provider Almoosa Health Co set a final offer price of 127 riyals per share, implying total offering around 1.69 billion riyals ($449.85 million) and making it the second-largest IPO in the kingdom this year.