Egypt's main index rose 1.4 percent to 4,194 points after dropping around 5 percent last week to reach a 29-month low ahead of the Friday demonstration, which came as dissatisfaction grows with the army's handling of the transition period following the overthrow of the former president, Hosni Mubarak.

"It's really just a relief bounce," said Osama Mourad, CEO of Arab Finance Brokerage. "The specific worry last week was in regard to Friday's demonstration. Thankfully from a security point of view, there were minimal incidents."

Property developer Talaat Moustafa gained 1.6 percent.

Traders said there was optimism that a court hearing this week in a suit contesting TMG's flagship Madinaty project was expected to come out in favor of the firm.

Its peer Palm Hills gained 4.8 percent and Orascom Construction rose 1.9 percent.

Mourad said the turnover was likely to remain weak until there is a fixed timetable for handing power to a democratically elected government.

In Saudi Arabia, the Tadawul All-Share Index (TASI) eased 0.07 percent to 6,112.41 points.

In Dubai, the index slipped 0.1 percent to a near seven-month low at 1,430 points and volumes also slumped to a milestone low.

Less than 20 million shares were traded, the lowest total for at least two years as weak global cues weighed on local risk appetite. 

"Investors prefer to wait and see for a clearer direction from international markets," said Marwan Shurrab, vice-president and chief trader at Gulfmena Investments.

Emaar Properties fell 0.4 percent on the first day of trading since banking sources told Reuters the Dubai developer is using four shopping malls as collateral for an $800 million loan. The company said the report was incorrect.

Abu Dhabi's index gained 0.1 percent to 2,536 points, trimming its 2011 losses to 6.8 percent.

In Qatar, the index slipped 0.4 percent to 8,357 points as losers outnumbered gainers 17 to four.

In Oman, banking stocks dragged down the benchmark by 0.1 percent to a seven-day low 5,594 points. 

Heavyweight Bank Muscat shed 0.3 percent and Bank Sohar slipped 1.3 percent.

"Banks in Oman look attractive on valuations, but reaction to earnings will more or less take a backseat to US and European markets," said Joice Mathew, United Securities head of research.

The Kuwaiti index gained 0.1 percent to 5,839 points.

The Bahraini measure climbed 1 percent to 1,177 points.