UPDATE 3: While a late surge by Emaar of 7.2% lifts Dubai index to 1,535 points.
Saudi stocks rose to a one-month high, boosted by heavyweight Saudi Basic Industries (SABIC), on the back of firm oil prices.
Saudi's benchmark climbed 0.3 percent to 6,363 points, its highest level since May 19.
US crude oil prices finished higher on Friday for the second week in a row.
On Saturday, the Saudi index ended flat.
"While the move does not damage the rebound, it highlights the resistance around 6500," said Shuaa Securities in a note.
SABIC gained 0.8 percent and Al Rajhi Bank 0.3 percent.
"Besides the locally driven non-cyclical names, petrochemicals have recovered to a certain extent and banks have started to move on news that they have started lending," said Walid Mourad, senior analyst at ING.
Emaar Properties surged in late trading on Sunday, lifting the Dubai index, as the stock are seen as a strong play ahead of the second-quarter results.
The stock rose 7.2 percent, while Dubai's index gained 2.3 percent to 1,535 points.
"The negative themes are priced in, there are no sellers of size left in the market," said Ali Khan, managing director and head of brokerage at Arqaam Capital.
"Emaar's projects are on schedule, there is no negative, no headwinds on the stocks...the background is increasingly improving," he added.
Trading in Emaar accounted for nearly a third of stocks exchanging hands in Dubai.
Arabtec and Union Properties gained 5.5 percent and 2.2 percent respectively.
Kuwait's index traded higher, led by Zain, which rose for a second consecutive session as the telecoms firm recouped some of last week's losses.
Kuwait's index climbed 0.5 percent to 6,619 points.
"It (the index) has bounced to above the 6500 level, which is a decent support," said a Kuwait-based trader.
"I don't think we will see a major bounce, probably most sideways trading with more scope for a positive than a negative move," the trader added.
Zain gained 3.7 percent, extending its gains from last Thursday.
Qatar's index rose 0.4 percent to 7,039 points.
Heavyweights Qatar National Bank and Industries Qatar climbed 1.3 percent and 0.4 percent respectively. (Reuters)For all the latest UAE news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.