CIB rose 3 percent. Other lenders also advanced, with Egyptian Gulf Bank adding 1 percent and Credit Agricole Egypt rising 0.6 percent.

The benchmark Egypt index gained 0.7 percent to 6,609 points.

"In its last meeting, the monetary policy committee of the central bank toughened its tone on inflation, which means there may be an imminent interest rake hike. This is very positive for banks," said Mohamed Radwan of Pharos Securities. 

Talaat Moustafa Group (TMG) rose 2.1 percent on Monday, its second straight gain.

Dubai's index rose 0.5 percent to 1,692 points, recouping early losses to hit a four-month high, but analysts warned investors were getting over-excited. The benchmark has gained 14 percent month-to-date and its relative strength index (RSI) ended Monday at 83, with a value above 70 an overbought signal.

"Dubai's market has run ahead of itself - volumes were so low any buying would have sparked a rally," said Shahid Hameed, Global Investment House head of asset management for the Gulf region. "I would be selling at these levels." 

Property stocks dominated trade. Deyaar climbed 1.9 percent and Union Properties added 3.1 percent, but Emaar Properties fell 0.8 percent.

"There is some buying on the back of the FTSE announcement and Dubai World," said Matthew Wakeman, EFG-Hermes managing director for cash and equity-linked trading. "However, these are not major catalysts to keep the market moving."

The UAE was classified as an emerging market by index provider FTSE Group on Thursday, while earlier this month Dubai World agreed a deal to restructure almost $25 billion of liabilities.

Saudi petrochemicals hit a three-month peak as the Kingdom's index rose for a fourth day in six. Saudi Basic Industries Corp. (SABIC) added 2.3 percent and National Industrialization Co (TASNEE) rose 4.9 percent.

The Tadawul All-Share Index (TASI) rose 1 percent to 6,419 points.

"There's no particular reason for the move, but once one stocks starts to move, people go for the whole sector," added EFG's Wakeman.

The main index climbed 1 percent to 4,419 points.

"I think the market will hold this level," said Hesham Tuffaha, Bakheet Investment Group head of research. "Maybe we could see profit-taking next week but it will not be wide."

The Kuwaiti index climbed 0.4 percent to 6,821 points.

The Qatari index rose 0.1 percent to 7,602 points.

The Omani index rose 0.4 percent to 6,420 points.