Oil prices rose more than 2pc after industry data showed US inventories fell more than expected and as major US producers evacuated rigs in the Gulf of Mexico before a storm.

The Dubai index closed 1.2pc higher with Emaar Properties, its largest listed-developer, surging 3.5pc to its highest in two months.

Emaar Properties has been rising since Monday after its Egyptian subsidiary Emaar Misr Development initially agreed with El Nasr Housing and Development to settle a dispute on Uptown Cairo land.

The Saudi index added 0.6pc with Al Rajhi Bank  rising 0.7pc and National Commercial Bank increasing 1.4pc.

Investment bank EFG Hermes predicted 7.6pc growth year-on-year in second quarter profit for the kingdom's financial sector.

The kingdom's largest food products company Savola Group  moved 0.8pc up. On Tuesday, the firm said it had raised 1 billion riyals ($266.65 million) in Islamic bonds.

In Qatar, the index increased 0.5pc with Qatar National Bank adding 1.7pc. The Gulf's largest lender posted a 4pc increase in first-half net profit after the market closed.

Kuwait's index was up 0.6pc, continuing its winning streak for the 10th straight session triggered by an MSCI decision that it would move Kuwaiti equities to its main emerging market index in 2020.

Kuwait has outperformed its Gulf peers in anticipation of the MSCI move, gaining over 28pc year-to-date.

The Abu Dhabi index edged up 0.1pc, led by a 1.2pc rise in Abu Dhabi Commercial Bank, and a 2pc increase in Aldar Properties.

The latter was awarded 5 billion dirhams ($1.36 billion) of development projects from the Abu Dhabi government.

Bank of Sharjah bounced back 5.5pc, ending three straight sessions of losses set off after posting a steep fall in first-quarter profit.

Egypt's blue-chip index declined 0.6pc with Eastern Company dropping 2.3pc, while Ezz Steel plunged 9.7pc after earlier this week swinging into first quarter loss.