Other regional markets were mixed, with Abu Dhabi claiming a 15-week high as banks surged on dividend-based buying and a positive HSBC rating. Oman and Egypt ended losing streaks, but Dubai fell for the first session in five as Dubai World-inspired buying waned.
SABIC climbed 1.09 percent to SR93, its highest close since October 2008, with steady oil prices boosting petrochemical stocks.
"There has been a slowdown in demand for petrochemical products, but SABIC is the lowest-cost producer in the world and has a big competitive advantage," said Daniel Broby, chief investment officer at London-based Silk Invest.
The Tadawul All-Share Index (TASI) rose 0.55 percent to a 19-week high of 6,565.95. The sector activity was widely positive with 12 out of 15 sectors closing with gains ranging from 0.17 percent by the Industrial Investment sector to 1.26 percent by Hotel &Tourism sector. However, the sectors closing with losses were Real Estate Development, Transport & Insurance sectors with losses of 0.09 percent, 0.21 percent and 0.87 percent respectively. The overall market breadth remained positive with 71 advancers against 41 decliners giving an AD ratio of 1.73, the Jeddah-based Financial Transaction House (FTH) said in its daily market commentary.
"We are very positive on Saudi Arabia and it seems the Kingdom is fairly close to opening the market up to full foreign ownership, which will be a major boost," said Broby. "If this happens, then assets are likely to be reallocated to Saudi Arabia from other Gulf markets."
Abu Dhabi's index rose 1.2 percent to 2,827 points as National Bank of Abu Dhabi climbed 2.6 percent after being upgraded by HSBC.
First Gulf Bank rose 4.5 percent, taking its gains to 8.3 percent since approving a cash dividend.
Speculation the troubled conglomerate will soon announce a restructuring plan had lifted UAE markets this week, but Dubai's index fell for the first session in five as investors booked gains. The index fell 0.2 percent to 1,660 points.
"The UAE's performance will be news-driven," added Broby. "It looks like Dubai World will present some sort of restructuring plan soon. At present, it's a large overhang on the market and we need more visibility on Dubai banks' exposure to construction sector loans.
"However cheap the market looks, foreign investors will have to wait until these issues are cleared up before reallocating funds to the UAE (United Arab Emirates)."
National Central Cooling Co. (Tabreed) fell 5.8 percent, plunging for a third day since saying it would receive a $354 million bailout from Abu Dhabi investment vehicle Mubadala.
Banks helped Oman's index end higher for the first session in three as volumes hit a two-week high, with investors buying back stocks at lower levels. The benchmark rose 0.3 percent to 6,655 points.
"The market was down for a few days, so people saw value in some stocks," said Sayed Quadry, vice-president of business development at Amwal Investment in Muscat.
"Sentiment has improved, with people increasingly buying for the medium- to-long-term, but the large investors are still outside the market."
- With input from agencies
