Dubai's bellwether Emaar Properties ended at a three-month high, surging 5.5 percent to 2.86 dirhams, its highest close since Aug. 29.

"Emaar is on top of the list for joining an MSCI upgrade," said Talal Touqan, from Al-Ramz Securities. "Breaking 2.75 was a major step toward exiting the downward spiral." 

Index compiler MSCI said on Friday it will announce on Dec. 14 whether it will upgrade UAE and Qatar to emerging market status from frontier markets, having delayed its decision from June.

Dubai's benchmark gained 1.8 percent to close at its highest finish since Oct. 31.

Abu Dhabi's index rose 1.2 percent to 2,473 points, with First Gulf Bank climbing 5.3 percent, and National Bank of Abu Dhabi and Abu Dhabi Commercial Bank each rising 2.8 percent. 

In Qatar, the index rose 1.1 percent to 8,759 points — a three-week high.

Blue chips led gainers, with Qatar Telecom (Qtel) rising 3.6 percent, Industries Qatar adding 1.3 percent and Masraf Al-Rayan climbing 1.2 percent.

"Expectations from the market is positive, a good announcement could come... that could be a positive catalyst regionally," said Marwan Shurrab from Gulfmena Investments.

In Saudi Arabia, the Tadawul All-Share Index (TASI) inched down 0.01 percent to 6,169.23 after gaining 1 percent on Saturday after a rise in oil prices.

The Saudi petrochemical index shed 0.3 percent over worries on shrinking demand from China.

Saudi Basic Industries Corp (SABIC) lost 0.5 percent. 

In Oman shares ended at a two-week high, with most Gulf markets making gains as upbeat world equities buoyed sentiment. 

Muscat's index rose 0.6 percent to 5,509 points — its highest close since Nov. 17, with telecom firm Nawras rising 1.8 percent and Oman Telecom gaining 0.7 percent. 

"Overall global sentiment has improved, along with the institutions looking (for) bottom fishing and good dividend stories in Oman," said Kanaga Sundar, Gulf Baader Capital Markets head of research. 

In Kuwait, the benchmark slipped 0.1 percent, halting a four-day advance.

Logistics firm Agility fell 1.3 percent after saying on Sunday it has bid about $92.4 million to acquire a stake in Kuwait Health Assurance Co. (KHAC).

World stocks edged higher on Friday and registered their biggest weekly advance since March 2009 as data showed a drop in the US jobless rate.