Qatar National Bank gained 0.7 percent, Commercial Bank of Qatar rose 1.1 percent and Doha Bank climbed 0.9 percent. 

The index climbed 0.3 percent, its highest close since April 13. 

"The focus is on the banking sector with expectations for a strong Q4 supporting... Foreign investment has been high," said Marwan Shurrab, vice-president and chief trader at Gulfmena Investments.  

Bluechips lifted Oman's index by 0.3 percent to its highest close since Nov. 13 as local institutions target high dividend yield stocks. 

Oman's Ahli Bank gains 0.8 percent, Bank Muscat rises 0.1 percent and Renaissance Services climbs 1.1 percent.  

"We are seeing local institutional buying interest in dividend play," said Kanaga Sundar, Gulf Baader Capital Markets head of research, adding that the market will trade sideways as investors wait for clarity on the euro debt crisis. 

In the UAE, Dubai's index slipped 0.1 percent, further trimming gains from early this week.   

Emirates NBD shed 1.5 percent after sources said the lender scrapped plans for a sukuk issue.

Air Arabia slipped 1.1 percent and Dubai Financial Market declined 0.5 percent. 

There was little reaction to a statement from the emirate's government a day earlier that it had no plans to restructure debt held by state-linked companies.

"Volatility is still high in international markets, which is affecting regional investment decisions to build positions over the weekend. They are overshadowing local and regional announcements due to the strength of fears on European debt," said Shurrab.  

Abu Dhabi's index declined 0.04 percent to 2,442 points. 

Etisalat fell 0.5 percent. On Thursday, the telecoms operator said it had appointed Serkan Okandan as group chief financial officer.

Investors are watching out for Friday's high-stakes summit where European leaders will meet once again to tackle the euro zone's two-year-old debt crisis. Local markets will take direction from the result of that meeting, investors say. 

In Kuwait, the index ended 0.06 percent higher, trimming 2011 losses to 15.6 percent. 

Wary investors want more political stability before building positions, traders say.  

Kuwait's Emir Sheikh Sabah Al-Ahmad Al-Sabah dissolved parliament on Tuesday after the government was forced to resign last month in one of the deepest political crises in the state.