MIDEAST STOCKS-Gulf, Egypt stocks tumble on global growth worries

       By Shakeel Ahmad
    Sept 18 (Reuters) - Gulf markets and Egyptian stocks sharply
declined on Sunday as global economic growth woes kept oil
prices under pressure and pushed investors away from the region.
    Investors are bracing for a large increase to U.S. interest
rates when the Federal Reserve meets later in the week, which
could lead to a recession and reduce fuel demand.
    Oil, which fuels the region's growth, came under further
pressure from International Energy Agency's warning that demand
growth could grind to a halt in the fourth quarter.
    Saudi Arabia's benchmark index dropped 2.2% to
extend its four-week losing streak. Financial shares led all
other sectors lower.
    Gulf Cooperation Council countries, including the kingdom,
are in the firing line of Fed policy moves as five of them have
their currencies pegged solely to the dollar and broadly match
U.S. monetary steps, while Kuwait's dinar is linked to a basket
of currencies believed to be dominated by the greenback.
    Egyptian blue chips tumbled 3.1% in its biggest
single-day decline in two-and-a-half months. Some 25 of its 30
stocks pointed lower.
    The index, which is down more than 18% so far this year, has
come under pressure because of a sharp slide in foreign
portfolio investor holdings and rising costs of key commodity
imports, especially since Russia's invasion of Ukraine.
    Banking shares pushed Qatar equities down 1.2% as
higher interest rates are expected to squeeze lending to
businesses and households.

 SAUDI ARABIA          fell 2.2% to 11,572
 QATAR                was down 1.2% to 13,079
 EGYPT                  lost 3.1% to 9,763
 BAHRAIN              was flat at 1,938
 OMAN                   slid 0.3% to 4,466
 KUWAIT               dropped 0.3% to 8,459

 (Reporting by Shakeel Ahmad in Bengaluru; Editing by Alison
Williams)