By Ateeq Shariff

Dec 10 (Reuters) - Saudi Arabian stock market ended

higher on Tuesday, as investors looked ahead to the U.S. Federal

Reserve's upcoming interest rate decision, while the Dubai

bourse retreated on tax concerns.

Fed officials appear on track to cut interest rates this

month after data showed the U.S. labor market remained strong

but continued to cool in November.

The U.S. Fed started its interest rate easing cycle with an

unusually large 50-basis-point cut in September, followed by a

25 bps cut in November. Traders are pricing an 86% chance of

another quarter-percentage-point cut from the central bank at

its Dec. 17-18 meeting.

The Fed's decisions impact monetary policy in the Gulf

region where most currencies, including Saudi Arabia's, are

pegged to the U.S. dollar.

Saudi Arabia's benchmark index advanced 0.8%, led by

a 0.4% rise in Al Rajhi Bank and a 1.2% increase in

oil giant Saudi Aramco.

Dubai's main share index retreated 1.1%, weighed

down by a 2.7% fall in blue-chip developer Emaar Properties

and a 1.6% decrease in toll operator Salik Co

.

The United Arab Emirates starting in January will impose a

minimum top-up tax (DMTT) of 15% on large multinational

companies operating in the country, the finance ministry said on

Monday, as the government seeks to boost non-oil revenue.

In the short term, a higher tax regime will inevitably

impact profitability for businesses that were used to enjoying

relatively lower taxes offered by the Gulf state, leading to a

negative investor sentiment, said Bal Krishen, Chairman -

Century Group.

Elsewhere, Talabat Holding tumbled 6.9% to 1.49

dirhams in debut trade.

Talabat Holding, one of the biggest food-ordering businesses

in the Middle East, has raised about $2 billion from the largest

initial public offering in the UAE this year.

In Abu Dhabi, the index closed flat.

Outside the Gulf, Egypt's blue-chip index dropped

1.3%, as most of its constituents were in the negative

territory, including top lender Commercial International Bank

, which was down 1.5%.

SAUDI ARABIA rose 0.8% to 12,194

ABU DHABI finished flat at 9,250

DUBAI fell 1.1% to 4,794

QATAR gained 0.7% to 10,496

EGYPT lost 1.3% to 30,618

BAHRAIN down 0.6% to 2,017

OMAN dropped 0.4% to 4,533

KUWAIT added 0.1% to 7,846

(Reporting by Ateeq Shariff; Editing by Vijay Kishore

)