Dubai's index rose 2.4 percent to 1,553 points, its biggest gain since March 20.

Emaar Properties and contractor Drake & Scull each added 3.6 percent, while builder Arabtec gains 3.1 percent.

"It's just a reaction to an improved global outlook, plus changes to the visa laws which have prompted some people to put some cash back into the market," said Matthew Wakeman, EFG-Hermes managing director for cash and equity-linked trading.

The index is up 3.1 percent since Tuesday when the UAE extended visas for real estate investors to three years from six months.

Abu Dhabi property stocks also gained, helping the UAE capital's index climb 0.2 percent to 2,708 points.

Aldar Properties and Sorouh Real Estate added 3.2 and 3.3 percent respectively.

Adding to investor sentiment was news that euro zone finance ministers agreed on Saturday to disburse a further 12 billion euros to Greece and said the details of a second aid package for Athens would be finalized by mid-September.

"We need our own catalysts to take the market higher to the next level, such as earnings growth in Q2 and a small rebound in the real estate sector - that's key for UAE stocks because it will affect the listed developers and the banks," said Wakeman.

Qatar's benchmark climbed 1.4 percent to 8,479 points — its highest close since May 22.

Some analysts are bullish on second-quarter earnings, backed by Qatar's burgeoning economy, with gross domestic production forecast to grow by 16.7 percent in 2011, according to a Reuters June poll.

"Expectations are positive, especially with banks," said Hani Girgis, assistant chief dealer at Dlala brokerage in Doha.

Qatar National Bank rose 2.2 percent, Industries Qatar was up 1.7 percent and Qatar Telecommunications gained 2.4 percent.

Oman's index tumbled to a fresh 23-month low, with volumes slumping to an 11-day low. The measure slipped 1 percent to 5,856 points — its lowest close since July 2009.

Renaissance Services slipped 0.8 percent and Oman Telecommunications eased 0.2 percent.

"Contribution from institutional investors is very low. Traders are waiting for announcements of results," said Adel Nasr, United Securities brokerage manager in Muscat.

Egypt's benchmark index closed 0.9 percent higher at 5,419 points as investors took fresh equity positions at the start of the country's fiscal year.

"Investors and state funds are starting to buy after they were pressured to sell last week to make profits before the end of Egypt's financial year," said Mohamed Seddiek, head of research at Prime brokerage.

The Kuwaiti measure slipped 0.6 percent to 6,173 points.

In Saudi Arabia, the Tadawul All-Share index (TASI) climbed 0.1 percent to 6,660 points.

The Bahraini index eased 0.2 percent to 1,317 points.