Other regional markets were mixed, as a blue chips rally lifted Abu Dhabi's index 0.7 percent to 2,795 points, its highest close since Dec. 14.
Aldar Properties jumped 7.9 percent after selling assets to the government and Abu Dhabi Commercial Bank climbed 5.6 percent.
The United Arab Emirates pledged its support for Dubai but said the emirate had yet to ask for federal help, which analysts said would come reluctantly and with strings attached.
"Government intervention is playing a very strong role in improving sentiment in the region," said Vyas Jayabhanu, head of investments at Al-Dhafra Financial Broker in Dubai.
In Dubai, banking and real estate stocks rallied further, offsetting a 8.8 percent drop in shares of National Central Cooling Co. (Tabreed), which fell after a $354 million bailout from the Abu Dhabi government.
"We are hoping for an amicable settlement to the restructuring which most probably will take place. That's going to be good for the foreign investors too," Jayabhanu said.
Dubai Financial Market led blue chip gainers, rising 3.3 percent. Emirates NBD rose 2.1 percent and Emaar Properties rose 1.8 percent.
"We are seeing strong turnover in Dubai markets and investor concentration on blue chip stocks which were lagging earlier," said Marwan Shurrab, vice president and chief trader at Gulfmena Alternative Investments.
Saudi Arabia's index closed down for the second straight session, bucking a positive trend in the region as market heavyweight Saudi Basic Industries Corp (SABIC) fell 0.5 percent.
The Tadawul All-Share Index (TASI) lingered all day in the negative zone and closed with a loss of 23.89 points at 6530.1, down by 0.36 percent. The sector activity for the day was widely negative with 11 out of 15 sectors closing in losses ranging from 0.01 percent by the telecom and IT sector to 0.80 percent by the cement sector. The remaining four sectors closed with gains ranging from 0.12 percent in the retail sector to 1.48 percent in the insurance sector. The overall market breadth remained negative with 45 advancers against 67 decliners giving an AD ratio of 0.67, the Financial Transaction House (FTH) said in its daily market commentary.
In Kuwait, a 3.1 percent rally in telecom operator Zain and a gain in banking stocks helped the index end a two-day losing streak. The index rose 0.8 percent to 7,441 points.
"Zain represents about 20 percent of the index so any move in the stock drives the index higher. We are positive on the entire market especially after the Zain announcement," said Essa Al-Hasawi, dealer at Noor Financial Investment Co.
The telecom operator is in exclusive talks to sell some of its African assets to India's Bharti.
Oman's index closed down for a second day as National Bank of Oman fell 5.5 percent.
"Market sentiment remains mixed and stock-specific action is seen," said Ajeev Gopinath, assistant vice president for asset management at Gulf Baader Capital Markets.
Qatar's index ended flat at 6,855 points as a 1.6 percent rise in Commercial Bank of Qatar was offset by drop in other banking stocks including Al-Khaliji Bank and Doha Bank.
-- With input from agencies
