Qatar’s index was the top performer, rising 1.3 percent in its biggest gain since Sept. 5.

“Qatar outperformed its peers in Q3 and this will continue for at least the next couple of quarters, so any investors nervous about investing in the region are likely to be overweight in Qatar,” says Robert Pramberger, acting head of asset management at investment firm The First Investor in Doha.

“Qatar is lower risk and offers better returns. (Regional) markets have put in a good performance over the past few months and Q3 results were largely neutral, so the upside is limited for the time being.”

World stocks rose strongly, touching two-year highs, demand for emerging sovereign debt increased and the dollar fell as the afterglow of the Federal Reserve’s asset buying plan spread across markets, including those in the Middle East.

“All Gulf currencies are pegged to the dollar apart from Kuwait so buying anything will be better than sitting on cash,” says Hesham Tuffaha, Bakheet Investment Group head of research.

“There’s no doubt there will be extra money supply, but the question is whether it will be inflationary or not, so if you’re sitting on cash it’s a lose-lose scenario — you could miss out on the momentum pushing up asset prices and also lose from a devaluing dollar.”

Oil hit a fresh six-month high above $86, boosting sentiment in the world’s top exporting region.

“Oil has broken above $83 after several failed attempts and that helped lift sentiment,” says Shailendra Singh, head of asset management at Al-Shurooq asset management company.

“The Fed’s move is a confidence-building measure and with not many options, this money should eventually flow into equities.”

EFG-Hermes, Egypt’s largest listed investment bank, rose 3 percent to 31.30 pounds after JP Morgan rated it as “overweight” on Wednesday.

Emirates Telecommunications Corp. (Etisalat) fell 0.9 percent to a three-week low, a day after it set terms for its purchase of a controlling stake in Kuwait’s Zain, making any deal dependent on the sale of assets.

Zain rose 2.9 percent to a 14-month closing high of 1.44 dinars. Etisalat has offered to pay 1.70 dinars per share, while Zain was trading at 1.26 dinars before the deal was announced.

Aldar Properties dropped 4.2 percent, extending losses since the developer’s chief executive quit.

Abu Dhbai’s benchmark fell 0.4 percent to 2,751 points while, Dubai’s index rose 0.2 percent to 1,738 points. Egypt’s stocks rose 0.8 percent to 6,765 points and Kuwait’s index climbed 0.09 percent to 7,125 points.

Oman shares also climbed 0.3 percent to 6,516 points and Bahrain’s stocks rose 0.4 percent to 1,466 points.