UAE markets close higher

Markets in the United Arab Emirates edged higher as investors took heart from greater market stability and more visibility on the country's economic outlook, while Abu Dhabi's Dana Gas surged 9 per cent after a major gas deal.

Abu Dhabi's main index rose 0.61 per cent to 2,581 points, while the Dubai benchmark rallied 1.22 per cent to 1,637 points.

"We are not related to international markets now at all but are acting according to the UAE economic forecast," says Ahmed Hamdy of brokerage Prime Emirates.

"Dubai is looking much clearer now. People know what and how big the problems are," he said.

"They also know Abu Dhabi will back Dubai up if anything happens."

Shares in Dana Gas surged 9.2 per cent, a day after it said it was part of a consortium of companies from the UAE and Europe planning to export enough gas from the Kurdish region of northern Iraq to supply the first phase of the Nabucco pipeline to Europe.

"This looks good, it means cash is coming into the company and they are expanding...investors see value in this," Hamdy said.

In Dubai, Emaar Properties gained 1.6 per cent.