Major stock markets in the Gulf rose in early trade on Tuesday as investors cheered the prospect of the world’s largest economy averting a major debt default.

A weekend deal to lift the $31.4 trillion debt limit announced by the White House and House Republicans would avert a catastrophic U.S. default and boost overall appetite for risk.

Saudi Arabia’s benchmark index gained 0.6%, with Dr Sulaiman Al-Habib Medical Services climbing 1.2% and Riyad Bank advancing 1.5%.

Separately, Saudi Arabia’s First Milling Company said on Tuesday it aimed to raise 999 million riyals ($266.39 million) from its initial public offering after it set the share price at the top end of a previously announced range.

Most Gulf markets gain on US debt ceiling deal; Abu Dhabi falls

The company was the first of several flour milling privatizations in Saudi Arabia, sold to Raha AlSafi consortium for $540 million in 2020.

Dubai’s main share index added 0.2%, helped by a 2.1% rise in blue-chip developer Emaar Properties and a 1.7% increase in toll-operator Salik Co.

In Abu Dhabi, the index rose 0.7%.

The Qatari benchmark edged 0.1% higher in a choppy trade, with Vodafone Qatar adding 0.1%.

Meanwhile, crude - a key catalyst for the Gulf’s financial markets - fell, giving up earlier gains as concerns about the viability of the U.S. debt ceiling pact cooled investors’ risk-on sentiment and mixed messages from major producers clouded the supply outlook ahead of their meeting this weekend.