JEDDAH/DUBAI: Abu Dhabi’s index made its largest gain for more than eight months on Sunday and most other Gulf Arab markets also advanced as speculators bet Dubai’s immediate debt problems would be resolved.

Abu Dhabi’s benchmark surged 4.5 percent to 2,614 points, Dubai climbed 3.3 percent to 1,695 points and Oman’s 2.6 percent gain to 6,129 points was its largest for seven months.

On Monday, Dubai World Unit Nakheel’s $3.5 billion sukuk will mature and investors, both local and international, appear increasingly confident the beleaguered property developer will not default.

Kuwait’s index claimed its largest gain for 18 weeks as Global Investment House surged 5.3 percent after agreeing a $1.7 billion debt restructuring plan. The Kuwaiti index rose 1.3 percent to 6,848 points.

The Qatari benchmark rose 1 percent to 6,995 points, while the Bahraini index edged up 0.7 percent to 1,424 points.

Saudi Arabia’s index ended almost unchanged, with investors little moved by the regional rally.

The Tadawul All-Share Index (TASI) edged up 0.42 percent to 6,025.92 points. “Sector direction was generally down, with 8 of the 15 sectors closing with losses which ranged from 0.02 percent in the Real Estate to a loss of 1.94 percent in the Insurance sector. On the positive side, sector gains across 7 sectors ranged from 0.01 percent in the Building & Construction sector to a gain of 0.64 percent in the Agriculture & Food Industries sector. Overall market breadth was nonetheless negative, with 31 advancers and 92 decliners giving an AD ratio of 0.34,” the Jeddah-based Financial Transaction House (FTH) said in its daily market commentary on Sunday. “Volumes remain subdued in Saudi (Arabia) right now,” said Fouad Dajani, vice president at Credit Suisse Saudi Arabia.

“There isn’t much appetite to allocate substantial capital. Local investors here do not want to be caught out again if anything negative were to transpire out of Dubai.”

Meanwhile, the Capital Market Authority (CMA) has approved Saudi Hollandi Bank’s request to offer sukuk.

The value of the sukuk will be determined at a later stage by the company, the CMA said in a statement through its website on Sunday. — With input from agencies