Banks helped Oman's index touch a 38-week high on Thursday as volumes also surged, with investors betting on a windfall for lenders from increased government spending. Bank Muscat rose 1.3 percent, Bank Sohar added 2.5 percent and Bank Dhofar climbed 0.7 percent.
On Sunday, Oman said it will spend 30 billion rials ($77.92 billion) in a five-year economic plan to 2015. The index rose 0.4 percent to its highest finish since April 15. More than 21 million shares were traded, the highest total for four months.
Dubai's index rose 1.2 percent to a three-week high as real estate-related stocks rallied. Emaar Properties climbed 1.7 percent and Union Properties added 1.6 percent. Dubai house prices have fallen about 60 percent from 2008 peaks as oversupply and a liquidity crunch sent valuations tumbling.
Builder Arabtec climbed 2 percent, recouping most of Wednesday's losses that were sparked by its chief executive being banned from trading on UAE markets for six months.
Dubai volumes fell to a 2011 low, while the index was the worst regional performer last year, falling 9.6 percent. Qatar's National Leasing Co fell 7.4 percent to a four-week low after it reported a 19-percent decline in fourth quarter profit, although the stock remains up 14.2 percent over the past two months. The firm made a net profit of 30.7 million riyals ($8.44 million) in the fourth quarter.