REFILE-MIDEAST STOCKS-Dubai posts second weekly gain, Abu Dhabi inches higher

(Fixes typo in headline, no change to text) By Ateeq Shariff June 9 (Reuters) - Stock markets in the United Arab Emirates edged higher on Friday ahead of a widely expected pause in interest rate hikes by the U.S. Federal Reserve, alhtough falling oil prices limited gains. Dubai's main share index gained 0.3%, led by a 5.9% rise in Gulf Navigation and a 1.1% increase in sharia-compliant lender Dubai Islamic Bank. The Dubai index posted its second weekly gain of 2.7%. Most Gulf currencies are pegged to the dollar and any monetary policy change in the United States is usually mimicked by Saudi Arabia, the United Arab Emirates and Qatar. The U.S. Fed's next rate-setting meeting is on June 13-14. In Abu Dhabi, the index gained 0.2%. However, the Abu Dhabi bourse posted its sixth weekly loss of 0.4%. Oil prices - a key catalyst for the Gulf's financial markets - looked set to post their second straight weekly loss, as prices continued to fall over concerns about demand from China and due to scepticism over a report the United States and Iran were close to striking a nuclear deal. ABU DHABI rose 0.2% to 9,369 DUBAI gained 0.3% to 3,699 (Reporting by Ateeq Shariff in Bengaluru; Editing by Nick Macfie)