KHC surged 5.1 percent to its highest close since June 21, helping lift the Tadawul All-Share Index (TASI) by 0.1 percent.

Advanced Petrochemical rose 2.1 percent in strong buying after saying it will pay a SR1 per-share cash dividend for the second half of 2011.

It will also issue one bonus share for every 6.25 held, raising its paid-up capital to SR1.64 billion from SR1.41 billion, it said in a statement. 

Saudi Chemical Co. climbed 3 percent. It said on Sunday it will distribute a SR2 per-share dividend for the third quarter. Dec. 28 is the ex-dividend date.

In Abu Dhabi, the index slumped to a fresh 21-month low as property stocks tumbled. 

Aldar Properties fell 5.4 percent and Sorouh Real Estate ended 4.7 percent lower. Both had dropped more than 7 percent intraday.

"Investor focus is shifting back to fundamentals and with the recent delays and cancellations in Abu Dhabi real estate projects, it would be hard to imagine from where these developers will continue to generate cash going forward," said Amer Khan, fund manager at Shuaa Asset Management.

Abu Dhabi government-owned Tourism Development and Investment Co. said in October it was postponing the opening of three museums, in a fresh delay for one of the largest cultural projects in the Middle East.

In Dubai, contractor Arabtec rose to a 13-month high, extending gains to help lift the emirate's index by 0.1 percent. 

Shares in Arabtec climbed 1.8 percent, up for a third session to reach its highest close since November 2010. Traders said an individual investor wanted to purchase a sizable stake in the firm, but a company official denied the report.

Emaar Properties fell 2.3 percent. After market hours, the developer said it had signed a $1 billion Islamic and conventional financing facility, secured by Dubai Mall.

Mashreq bank jumped 9.4 percent, in just two trades. Analyst said illiquid stocks see similar trades near year-end to boost stock prices.

Qatar's index ended 0.09 percent lower and Oman's index fell 0.7 percent. 

Kuwait's benchmark declined 0.3 percent after the ruler called an early parliamentary election for Feb. 2.

"The outcome of the election and who will be running the government is an important factor, the date is no surprise," said a Kuwait-based trader on condition of anonymity. 

"Your main driver until then is end-of-year closing."