Firm oil prices and end-of-week gains on world markets lifted other regional bourses.
Dubai climbed 2.3 percent to 1,622 points in its biggest gain since Jan. 25, breaking above a key resistance at 1,615 points and analysts forecast further gains in the short-term. The Abu Dhabi index rose 0.8 percent to 2,747 points.
"People are saying an announcement may soon come from Dubai World and what's being offered will not be as bad as feared, so some investors are building positions now to stay ahead of the curve," said Mohammed Yasin, Shuaa Securities chief executive.
Dubai World is restructuring around $22 billion of debts, with an announcement expected this month.
DP World rose 4.9 percent after a newspaper report said it may offer new shares to shareholders and parent Dubai World could sell an additional stake as part of its plan to list on the London Stock Exchange.
"We believe the appetite for equity in the potential new listing is likely to be solid, given the emerging market exposure and excellent cash flow generation offered by the stock, partially offsetting its perceived Dubai risk premium," Ian Munro, MAC Capital head of research, wrote in a note.
Arabtec rose 3.9 percent after its chief finance officer told Reuters the builder's $1.7 billion stake sale to Aabar Investments would be completed in April.
Aldar Properties climbed 0.6 percent, easing away from Thursday's eight-month low, despite offering a reduced dividend, with the stock seen as over-sold. Aldar was one of seven Abu Dhabi entities downgraded by Moody's last week.
Saudi Arabia's index hit a 19-week high as Saudi Basic Industries Corp. (SABIC) rose 0.5 percent to a fresh 16-month high, boosted by firm oil prices.
The Tadawul All-Share Index (TASI) closed 0.32 percent higher at 6,560.46.The sector gains ranged from 0.16 percent by the Media and Publishing sector to 0.60 percent by the industrial investment sector and the losing sectors for the day ranged from 0.11 percent by the Transport to 1.53 percent by the Multi-Investment sector. The market breadth remained widely positive with 66 advancers against 49 decliners, giving an AD ratio of 1.34, the Jeddah-based Financial Transaction House (FTH) said in its daily market commentary.
The Kuwaiti index fell 0.3 percent to 7,413 points. National Bank of Kuwait fell 1.5 percent a day before its capital increase was set to be implemented, which will dilute existing shareholdings.
The Omani index rose 0.5 percent to 6,683 points and Bahraini index by 0.2 percent to 1,506 points.
- With input from agencies
