Stock markets in the Gulf bounced back on Monday following a series measures taken by local authorities.

The Dubai market soared 6.6 percent and Abu Dhabi almost six percent, after a government decision to guarantee deposits and savings and a pledge to protect the country's banking system.

Abu Dhabi Commercial Bank shares jumped nearly 10 percent in early trade.

Qatar stocks surged in early trade, led by the banking sector, after Qatar Investment Authority said it will buy 10-20 percent of listed banks' capital to boost confidence in the market.

The main index rose 7.42 percent. Qatar Commercial Bank was up 7.92 percent, Qatar National Bank climbed 6.29 percent and Qatar Islamic Bank jumped 9.17 percent. Industries Qatar gained 7.8 percent.

"The market is rebounding, partly on Asian markets and partly on positive sentiment, especially in Dubai," said Adel Nasr, a local brokerage manager at United Securities, in Muscat.

"People are starting to have confidence in the market."    

The Bahrain index gained 0.48 percent.