Saudi Arabian petrochemical stocks led gains on the bourse, which rallied for a seventh session in eight on Sunday as earnings expectations buoyed confidence and most other Gulf markets rose on an upbeat global backdrop.

Bellwether Saudi Basic Industries Corp (Sabic) rose 1.6 per cent, Yanbu National Petrochemical climbed 5.3 per cent and National Industrialization (Tasnee) added 2.3 per cent.

The kingdom's index rose 0.7 per cent to its highest level since September 2008.

'Investors are shifting into petrochemicals because fundamentals are stronger, dividend yields are attractive and they haven't risen as much as smaller-cap stocks,' said Muhammad Faisal Potrik, research analyst at Riyad Capital.

'Expectations are that petchems will post good results,' he stated.

A positive global backdrop, high oil prices and a fresh flood of liquidity into the Saudi market are also supporting local investor confidence.

The total value of shares traded in the first quarter was SR684.7 billion ($182.59 billion), up 163 per cent from a year earlier, according to a bourse report.

The total market capitalisation at the end of the first quarter was $410 billion, up 16.7 per cent in the prior-year period.

Oil rose on Friday to post the biggest quarterly gain since the beginning of 2011 as the growing threat of a disruption to Iranian exports added to supply concerns.

Elsewhere, UAE bourses rose on Sunday, taking support from the upbeat global backdrop but local investors remained cautious ahead of first-quarter earnings.

Abu Dhabi Commercial Bank gained 4.2 percent on the prospect of the lender expanding its loan book.

State-owned investment fund Mubadala, which holds a near-majority position in indebted Aldar Properties said it plans to transfer a 14-per cent stake in the developer to secure a loan facility from ADCB.

First Gulf Bank and Abu Dhabi Islamic Bank  gained 0.3 and 1.2 percent respectively. Aldar ended flat.

'The Q1 numbers will be very good mainly for banks and also for real estate companies,' said Musa Haddad, head of Mena equity desk at National Bank of Abu Dhabi. 'Dubai's property prices have been stabilising,' he added.

Abu Dhabi's benchmark climbed 0.3 percent, easing away from Thursday's five-week low.

'Markets will be sideways for some time now and it is a good time to accumulate because there is less volatility. A breakout could happen at any time, even before the earnings, which would give strong confidence to the market,' Haddad added.

Dubai-listed Emaar Properties gained 1.3 per cent and Dubai Financial Market climbed 2.6 per cent. The emirate's index ended 0.8 per cent higher, extending 2012 gains to 22.8 per cent. It has moved within a range of 50 points for the past two weeks.

World stock markets advanced on Friday, posting double-digit gains for the quarter, as economic reports showed US consumer spending and sentiment is still on the rise.

In Qatar, the index rose 0.6 per cent to its highest close since Jan. 5 and seventh straight advance.

Gainers outnumbered losers 16 to four. Qatar National Bank  climbed 1.4 percent, Industries Qatar rose 1 percent and Qatar Gas Transport added 1.1 percent.

Qatar's exchange launched two new indices on Sunday, the Total Return Index and All Share Index. It also adjusted some stocks on the existing main index and capped their weight at 15 percent.-Reuters