Dubai, Abu Dhabi close higher

Emaar Properties climbed 0.8 per cent, Arabtec rose 5.3 per cent and Deyaar added 2.8 per cent. Together this trio accounted for about a third of all shares traded on the index. Property is the biggest sector on Dubai's benchmark.

Emirates NBD reversed an initial decline to end 0.3 per cent higher as most stocks rise on improving regional and global sentiment, buoyed by a strong start to the earnings season worldwide.

The benchmark climbed 1.2 per cent to 1,712 points.

"Dubai breaking below 1,740 points was irrational and wiped out most of the gains achieved since February," said Haissam Arabi, chief executive and fund manager at Gulfmena Alternative Investments.

"The 1,650-mark should be a strong support level and what we have seen is confirmation of that."

Abu Dhabi's benchmark closed higher, with banks and property stocks rising on thin volumes as stocks across the Gulf Arab region rallied as sentiment improved globally.

First Gulf Bank climbed 5.3 per cent, Aldar Properties added 3 per cent and National Bank of Abu Dhabi rose 1.5 per cent. The index ended 1.1 per cent higher at 2,637 points.

"It's too early to say whether this is the start of a rebound -- volumes are very low and there's not much liquidity around," said Ayman el-Saheb, Darahem Financial Brokerage director of operations.

Just over 80 million shares changed hands. This compares with a daily average of 140 million shares in the three months to the end of June.