The Tadawul All-Share Index (TASI) rose 0.2 percent to 6,605.47 - its highest close since May 12, with the headline budget figure already priced in, analysts said. Saudi Telecom Co. rose 1.2 percent.

The sector activity for the day was all positive except 2 losing sectors. The gaining sectors ranged from 0.04 percent by the Cement sector to 0.89 percent by the Telecommunication & Information Technology sector. On the other hand the losing sectors were the Multi-Investment sector with loss of 0.29 percent and the Petrochemical Industries with loss of 0.30 percent. The overall market breadth for the day was positive with 68 advancers against 45 decliners giving it an AD ratio of 1.51, the Financial Transaction House (FTH) said in its daily market commentary.

The stock market turnover reached SR2.89 billion on Tuesday.

The building and construction index rose 0.5 percent to take its gains to 12 percent in December as investors bet on a windfall from bumper state spending.

Industries Qatar (IQ) rose 1.7 percent, helping Doha's benchmark end a three-session losing streak. The Qatari index climbed 0.4 percent to 8,664 points.

Volumes slumped to a three-week low. 

Builder Arabtec fell 1.5 percent and Emaar Properties dropped 1.1 percent as Dubai's index slipped to a 15-week low. The index dropped 0.4 percent to 1,626 points. The Abu Dhabi fell 0.7 percent to 2,698 points.

"Maybe investors prefer to watch and wait for the Q4 earnings season to avoid any surprises," said Mohamed Khaled, Prime Emirates relationship manager. 

The Kuwaiti index rose 0.3 percent to 6,820 points.

The Omani index rose 0.4 percent to 6,710 points.

The Bahraini index slipped 0.2 percent to 1,424 points. 
 
— With input from agencies