An individual buyer is looking to acquire a small stake in Arabtec, traders said. The construction firm said the company's Chief Executive Riad Kamal has transferred his shares in the firm to his family, and denied market rumors of a stake sale.

"Mr. Kamal has distributed his shares among his three daughters as part of his estate planning," Chief Financial Officer Ziad Makhzoumi told Reuters.

"This has nothing to do with anyone buying or selling," he said when asked about a stake sale.

Dubai's index gained 0.4 percent to 1,372 points, rising from Thursday's two-week closing low. Late Wednesday, influential index compiler MSCI said it would not upgrade the UAE to an emerging market status.

Losers outnumbered gainers nine to four. Emaar Properties slipped 1.1 percent and Drake & Scull fell 1.7 percent. 

Mashreq Bank was the main support, surging 7.1 percent, but just 2,525 shares changed hands.

Abu Dhabi's index slipped 0.04 percent to 2,412 points.

"We have no reason to increase risk in UAE equity markets," said Marwan Shurrab, vice-president and chief trader at Gulfmena Investments.

"After MSCI's decision, we return to our correlation with international markets. There is no major catalyst for a move against (global) markets."

World stocks were mixed on Friday as worries about downgrades of weaker euro zone countries curbed risk appetite.

In Saudi Arabia, SABIC, the world's largest chemicals producer, climbed 1.1 percent to rebound from Saturday's two-week low after saying it would issue a SR3-per-share dividend for the second half of 2011.

The Tadawul All-Shares Index (TASI) gained 0.2 percent to 6,268 points, rising for a third straight session.

Other petrochemical stocks also advanced, with Saudi Kayan Petrochemical up 0.6 percent and Alujain climbing 2 percent. 

The building and construction index rose 0.9 percent, also up for a third session with investors also betting on consumer-driven stocks to end the year strongly.

"(The) consumer and domestic (sectors) are good areas to be in, like cement," said Farouk Miah, Acting Head of Research at NCB Capital.

Government spending on infrastructure has boosted demand in the construction sector.

In Oman, the benchmark declined 0.1 percent to 5,711 points, down for a second session since Wednesday's 12-week closing high as investors booked profits.

Oman Telecommunications fell 0.2 percent and Renaissance Services shed 0.7 percent. Heavyweight Bank Muscat dipped 0.3 percent.

Elsewhere, Kuwait's index ticked up 0.2 percent to 5,832 points, while Qatar's bourse was closed on Sunday for a National Day holiday.