Saudi Arabian shares ended higher on Wednesday, outperforming other Gulf peers, buoyed by gains in banking shares, while Egypt's blue-chip index extended losses.

The kingdom's benchmark index advanced 1.5%, boosted by a 2.1% gain in oil giant Saudi Aramco and a 1.7% rise in Al Rajhi Bank.

In August, the total value of shares traded on the Saudi stock exchange (Tadawul) amounted to 150.41 billion riyals ($40.10 billion), a 35.02% increase compared to the previous month.

The biggest gainer on the benchmark index was Emaar The Economic City, up 9.9%, extending gains to a second straight session.

On Tuesday, the developer entered a subscription agreement with Public Investment Fund (PIF), the kingdom's main sovereign wealth fund. The completion of the deal is subject to several conditions.

Dubai's main share index added 0.3%, helped by a 1.4% rise in blue-chip developer Emaar Properties and a 1.3% increase in Emirates Integrated Telecommunications .

In Abu Dhabi, the index rose 0.5%, with telecoms firm Etisalat rising 0.9% and First Abu Dhabi Bank (FAB) was up 0.5%.

FAB, the United Arab Emirates' largest lender, said on Tuesday it would open discussions with Israel lenders Bank Hapoalim and Bank Leumi, after the signing of a memorandum of understanding between the UAE central bank and the Israeli prime minister's office.

The Qatari index lost 0.4%, pressured by a 1.5% fall in Qatar Fuel Company.

Outside the Gulf, Egypt's blue-chip index slipped 0.2%, hurt by a 0.8% decline in top lender Commercial International Bank.