The Tadawul All-Share Index closed 1.6 percent higher at 6,187.39 points. The sector activity for the day was positive with 14 out of 15 sectors closing with gains ranging from 0.09 percent by Telecommunication & Information Technology sector to 3.80 percent by Energy & Utilities sector. On the other hand the loss was witnessed only in one sector namely Real Estate Development with 0.03 percent. The overall market breadth for the day was strongly positive with 114 advancers against 14 decliners giving it an AD ratio of 8.14, the Financial Transaction House (FTH) said in its daily market commentary.

Shares in petrochemicals giant Saudi Basic Industries Corp. (SABIC) ended 2 percent higher while heavyweight Al-Rajhi Bank added 1.7 percent.

The banking index closed 2.3 percent higher while the petrochemicals index rose 1.9 percent.

The other Gulf stock markets were closed on Saturday.

Meanwhile, Dubai Financial Market (DFM) reported a 79.8 percent fall in second-quarter profit as declining trading volumes weighed on earnings.

The firm, the Arab world's only publicly listed exchange, made 25.9 million dirhams ($7.05 million) in the three months ending June 30, compared to 128.3 million dirhams in the second quarter of 2009, it said in a statement.

Trading commission fees fell to 43.5 million dirhams in the second quarter, from 126.7 million dirhams a year earlier, according to the statement.

Earlier this year, DFM bought Nasdaq OMX's one-third stake in the Nasdaq Dubai, with the two Dubai-based bourses switching to a single trading platform to try to boost market turnover.
 
- With input from agencies