Emaar climbed 3.4 percent, its biggest advance since Sept. 5. The developer’s quarterly profit missed estimates, but analysts were largely bullish.

“Despite some ‘minor’ corporate distractions, we think the company is in a better financial position now than it was six months ago. We reiterate our buy rating at these levels,” Chet Riley, Nomura property analyst, wrote in a research note.

Dubai’s index climbed 2.6 percent to its highest finish since April 15.

Abu Dhabi’s First Gulf Bank (FGB) rose 1.5 percent after its quarterly profit beat consensus.

“FGB’s results were based on stronger rising net interest income,” said Raj Madha, Rasmala senior banking analyst. “Loan quality also seemed to be under control. The only disappointment was from its trading-related income, but this is of a volatile nature.”

Abu Dhabi Commercial Bank fell 0.4 percent. On Tuesday, it posted a jump in quarterly profit.

“ADCB was in many ways the opposite (to FGB), reporting slightly disappointing net interest income, but trading-related income was extremely strong,” adds Madha. “Both FGB and ADCB showed improved loan quality. Some people are worried about loan growth, but that isn’t what banks should be focusing on.”

Oman’s Raysut Cement rose 0.3 percent, reversing earlier losses, after saying it would buy the United Arab Emirate’s Pioneer Cement Industries, which is based in the northern emirate of Ras Al-Khaimah.

“Raysut Cement is very successful in selling cement in the south of Oman from its base in Salalah, but it has higher costs transporting cement to northern Oman,” said Adel Nasr, United Securities brokerage manager.

“So buying the Ras Al-Khaimah company will reduce transportation costs and help it compete more strongly with Oman Cement  in northern Oman, which is where most of the demand is.”

Kuwait’s main index hit a two-week high. Yet many investors use the weighted index, which is up 24 percent in 2010 to be the best performing Gulf Arab benchmark.

“Most institutional investors have been underweight in Kuwait this year, but enthusiastic local retail investors have enabled Kuwait stocks to rally,” said Shakeel Sarwar, head of asset management at Bahrain’s Securities & Investment Co. (SICO).

“These investors have been over-optimistic and while the market may continue to do well in the short term, in the medium to long term, Kuwait’s quality of earnings are the lowest and valuations the highest, so the market will probably suffer a sharp correction.”

Meanwhile, Abu Dhabi’s index fell 0.2 percent to 2,817 points, however, Kuwait bourse rose 0.3 percent to 7,068 points.

Qatar’s stocks climbed 0.1 percent to 7,805 points and Oman’s index rose 0.2 percent to 6,582 points but Bahrain’s bourse slipped 0.1 percent to 1,463 points.