The firm's shares rose 6.3 percent to their highest close since Sept. 25, 2008.

"The deal seems EPS (earnings per share) accretive," said Shehzad Janab, Daman Investments chief investment officer.

"The fact it has been able to sell assets in the current environment should be seen as a positive, but for people following DP World the deal is not a surprise."

DP World will sell majority control in its Australian operations to private equity firm Citi Infrastructure Investors (CII) as it seeks to reduce debts, with a $3 billion revolving credit facility maturing in 2012. It will continue to manage the Australian facilities on the new owner's behalf.

"DP World's prize asset is Jebel Ali, which generates the bulk of its earnings, while its growth assets such as its Cochin port and Vietnam are still there," said Janab.

DP World was excluded from parent company Dubai World's $25 billion debt restructuring, while in November Dubai officials said the emirate may sell off assets as the it seeks to reduce an estimated $115 billion debt pile, mainly held by government-owned companies.

"DP World is making money and is a play on regional and global growth and I would expect it to continue to be ring-fenced from Dubai asset sales until prices improve and I don't see that happening any time soon," Janab added.

Dubai's Emaar Properties fell 1.4 percent following a report by Indian media that the developer's Indian unit lost a $41 million court case in India.

"The case isn't a big deal, but the pressure on Emaar's stock was more pronounced given the low volumes in the market," said Tarik Lotfy, Arqaam Capital Head of MENA equities.

Dubai's index slipped 0.1 percent to 1,624 points — a new 15-week low in muted trade. The Abu Dhabi index rose 0.05 percent to 2,700 points.

"Institutional trading has largely dried up due to seasonal issues," added Lotfy. "We may have drifted lower over the past couple of weeks, but I'm bullish for next year and expect interest to return and sentiment to improve over the course of Q1 - UAE markets are under-owned, so risk is to the upside."

Saudi Electricity Co. rose 1.4 percent a two-month high after the utility said it may involve private firms in building more power plants, helping Saudi Arabia's index edge up to a new seven-month peak.

The Tadawul All-Share Index (TASI) edged up 0.06 percent to 6,610 points. The sector activity for the day was mixed with 8 out of 15 closing with gains ranging from 0.09 percent by the Multi-Investment sector to 2.71 percent by the Transport sector. On the other hand the losing sectors ranged from 0.03 percent by the Media and Publishing sector to 0.36 percent by the Agriculture & Food Industries sector. The overall market breadth for the day was positive with 59 advancers against 53 decliners giving it an AD ratio of 1.11, the Financial Transaction House (FTH) said in its daily market commentary.

The stock market turnover reached SR3.16 billion on Wednesday.

The Kuwaiti index rose 0.7 percent to 6,866 points.

The Qatari index fell 0.1 percent to 8,655 points.

The Omani index rose 0.1 percent to 6,719 points.

The Bahrain index fell 1.1 percent to 1,408 points.
 
— With input from agencies