Egypt's third-biggest listed developer SODIC gained 1.6 percent after it posted third-quarter net profit of 56.7 million Egyptian pounds ($9.96 million), rebounding from a year-earlier loss, as revenue soared.

"Most companies have reported very good results with increases in revenues and growth in sales. This incremental growth is driving the market forward," said Margo Moussa from Arab Finance Brokerage.

Orascom Telecom jumped 6.2 percent. Traders said there were several recent buy orders on OT's GDRs, which climbed 2.3 percent on Thursday and gained another 2.3 percent on Sunday.

"We expect gains across the board and if OT continues to go up it could take our index to the 7,000 level," said Pyramids Capital Vice Chairman Hashem Ghoneim.

The index closed up 1.5 percent at 6,925 points, within sight of an October 4 high of 6,947.67 points, which was its highest level since mid-May.

Qatar continued to outperform regional markets, closing at its highest since October 2008.

Bank stocks led the rally as Qatar National Bank, the gulf state's biggest lender by market value, climbed 4.1 percent and Masraf Al Rayan gained 1.3 percent.

Doha's index added 1.3 percent ending at 8,190 points.

"The earnings have been good for banks and provisions came down, which boosts investor confidence," said Robert Pramberger, acting head of asset management at Doha-based investment company The First Investor. 

"Qatar's economy is growing and being a lower risk market, most people prefer to invest here."

In the United Arab Emirates, property stocks gained on reports of fresh injection of government funds into Dubai Holding.

Mohammed Al-Shaibani, the vice chairman of Dubai's top fiscal body told the Financial Times on Tuesday that the government had already pumped in $2 billion to Dubai Holding.

"Real estate stocks reacted to news reports about government funds going to Dubai Holding," said Haissam Arabi, chief executive and fund manager at Gulfmena Alternative Investments. "If this is true, its good news, especially for the property sector."

Dubai builder Arabtec climbed 3.2 percent and Emaar Properties rose 1.9 percent. The benchmark gained 0.9 percent.

Meanwhile in Saudi Arabia, the Tadawul All-Share Index closed 0.33 percent lower at 6,362.37 points after losing 21.31 points Sunday. The sector activity for the day was mostly negative with three gaining sectors against 12 losing sectors. The gaining sectors were energy and utilities sector, real estate development sector and multi-investment sector with respective gains of 0.02 percent, 0.13 percent and 0.52 percent. On the other hand the losing sectors for the day ranged from -0.15 percent by the transport sector to -0.93 percent by the media and publishing sector. The overall market breadth for the day was negative with 40 advancers against 79 decliners giving it an AD ratio of 0.50. The liquidity for the day reached SR2.05 billion, the Financial Transaction House (FTH) said in its daily market commentary.

In Abu Dhabi, the index dropped 0.2 percent to 2,743 points while in Dubai the stocks climbed 0.9 percent to 1,703 points. In Kuwait, the market gain 0.3 percent while in Oman the stocks fell 0.08 percent. In Bahrain the index fell 0.2 percent.