Investors are betting the deal to raise a debt ceiling means the US economy will avoid default. Saudi petrochemical stocks lifted the index after debt concerns eased. The Kingdom's bourse is highly correlated to the United States, the main market for its oil production.Saudi Basic Industries Corp. (SABIC), the world's largest chemicals producer, gained 2.4 percent and sector's index climbed 2.2 percent, accounting for a quarter of all shares traded on the largest Arab bourse. The Tadawul All-Share Index (TASI) gained 1.25 percent to 6,471.82 points."A lot of the activity in the Saudi market is being driven by international news but fundamentals are strong and valuations are still attractive," said Asim Bukhtiar, head of research at Riyadh Capital. Valuations are attractive in some bank stocks such as Banque Saudi Fransi, Al-Rajhi Bank and Arab National Bank, he added.Heavyweight Al-Rajhi Bank climbed 0.7 percent, while Banque Saudi Fransi and Arab National Bank slipped 0.2 and 0.3 percent respectively. Property stocks lifted the UAE bourses on the back of positive sentiment regionally but muted trade limited gains. The Dubai index advanced 0.6 percent to 1,526 points.Abu Dhabi's index scaled 0.7 percent to 2,638 points, rising from Sunday's two-month low. Volumes slumped to a 12-day low. Aldar Properties rose 2.4 percent and Sorouh Real Estate climbed 1.6 percent."We've been seeing subdued trading activity for almost two weeks now, a combination of summer lull and the start of the holy month of Ramadan today," said Sleiman Aboulhosn, assistant fund manager at Al-Masah Capital.Dana Gas ended flat for a second day since it hit a two-week high on Thursday after reports of a possible takeover bid by investment vehicle Vallares."Sentiment around the name remains strong leading us to be more optimistic about the Dana Gas' short-term prospects," Aboulhosn added. Dubai's Emaar Properties advanced 2.8 percent, accounting for a quarter of all shares traded. In Oman, the measure gained 0.4 percent to 5,832 points, rising from Sunday's two-year low. Gainers outnumbered losers 12 to eight."The USA deal backed the GCC markets — considering Ramadan, the market is doing good," said Osama Ibrahim Al-Qinna, head of brokerage at Oman Arab Bank.In Qatar, mid-caps helped lift the index by 0.1 percent. Qatar Islamic Bank and Masraf Al-Rayan climbed 0.6 percent each. The Qatari benchmark rose 0.1 percent to 8,412 points.The Kuwaiti index climbed 0.1 percent to 6,037 points. The Bahraini measure slipped 0.1 percent to 1,290 points.