Shares in Zain jumped 5.5 percent to SR5.75, their highest close since Oct. 29.
Mobile phone subscriptions of Saudi companies rose 15 percent to 56.1 million in the third quarter, the Communications and Information Technology Commission said in a report.
Riyad Capital upgraded the stock last week to 'buy' with a price target of SR6.40.
"One of the things holding back sales performance is the overhang from the debt restructuring," said Asim Bukhtiar, head of research at Riyad Capital.
"We think a restructuring is imminent. The shares are deeply undervalued and do not reflect the on-going growth cycle."
Arabian Pipes surged 6.1 percent to a five-month high. Its board proposed increasing the company's capital by 27 percent to SR400 million ($106.66 million) by offering 1.079 bonus shares for every four shares held.
Petrochemical stocks dragged down the index, with Saudi Arabian Fertilizers down 1 percent, National Industrialization slipping 0.5 percent and Yanbu National Petrochemical falling 0.9 percent.
Banks also weighed, with Samba Financial Group shedding 0.9 percent and the main index eased 0.03 percent, halting seven sessions of gains.
In the UAE, the two main markets ended lower in muted trade with volumes in Dubai slumping to a two-week low.
Dubai's index slipped 0.8 percent to its lowest close since 2004.
"Most fund managers in the region started their vacations so there's not much activity in the UAE. Also there are no catalysts in the near-term," said Marwan Shurrab, vice-president and chief trader at Gulfmena Investments.
Abu Dhabi's Aldar Properties rose 2.4 percent, up for a second session from last week's record low, when traders dumped the stock on talk that the company would delist its shares.
The company's deputy CEO dismissed the speculation as rumors last week.
"Following the recent market speculation, Aldar Properties would like to confirm that it is not... planning to undertake a delisting of its shares from the Abu Dhabi Securities Exchange," the company reiterated in a statement.
Elsewhere, Qatar's index rose 0.4 percent as investors picked up stocks on expectations of strong dividend yield.
Qatar National Bank gained 1.2 percent, Qatar Islamic Bank rose 1.1 percent and Masraf Al Rayan climbed 0.7 percent.
"The banking sector is still very high-yield dividend compared to the rest of the region, which keeps the interest of institutional and regional players," Shurrab added.
Industries Qatar advanced 0.5 percent after its wholly owned subsidiary Qatar Steel said it has secured a $250 million subordinated loan facility from two banks to finance expansion.
In Oman, the index added 0.2 percent, with banks supporting.
Heavyweight Bank Muscat rose 1.4 percent and Bank Sohar climbed 0.7 percent.
"Locally we may see a relief rally for the week led by new fund allocations and dividend play looking at the new year," said Kanaga Sundar from Gulf Baader Capital Markets.
