Saudi banks and petrochemicals are seen reporting strong results to boost the Kingdom's index.

"For banks, we are expecting good results," said Youssef Kassantini, a Saudi-based financial analyst. "Most of the provisions were allocated in 2009 and 2010. The political fear is not there anymore, so investors are more encouraged."

However, some caution remains.

"People are waiting for Saudi banks to start growing again — they are extremely liquid and well capitalized, but that begs the question why they are not growing," said Ibrahim Masood, senior investment officer at Mashreq Bank.

The Tadawul All-Share Index (TASI) slipped 0.52 percent to 6,625.87 points, easing from Sunday's four-week high. Volumes slumped to a week-low.

Saudi Basic Industries Corp. (SABIC) fell 0.9 percent, Al-Rajhi Bank dipped 0.7 percent and Mobily eased 0.3 percent.

Banks helped lift Dubai and Abu Dhabi indexes higher but investors remain cautious about second-quarter earnings.

Abu Dhabi's index gained 0.3 percent to 2,715 points, with four of the largest banks by market value closing higher.

First Gulf Bank gained 0.8 percent and Abu Dhabi Commercial Bank climbed 1 percent. Union National Bank and Abu Dhabi Islamic Bank both rose 0.3 percent.

"We expect them (banks in Abu Dhabi) to grow faster than Dubai's banks but whether or not there is any degree of acceleration is the question," said Raj Madha, Rasmala senior banking analyst.

"Our benchmark is for double-digit growth, but it is unlikely we will see that in this quarter. We may begin to see some public sector acceleration in Q2 results though.

Dubai Financial Market rose 0.2 percent to 1,556 points — a near two-week high.

Emirates NBD gained 3.5 percent, and Dubai Islamic Bank rose 0.5 percent.

In Egypt, the main index closed little changed after Orascom Construction said the World Bank could invest $350 million in the firm, suggesting renewed confidence in Egypt amid lingering doubts about its political stability.

The EGX30 rose 0.2 percent to 5,428 points, with one stock falling for each that gained.

Elsewhere, Kuwait's index climbed 0.4 percent to 6,195 points, halting a six-day decline.

The Qatari index gained 0.03 percent to 8,482 points.

The Omani index advanced 0.02 percent to 5,934 points.

The Bahraini measure climbed 0.02 percent to 1,318 points.