A jump in oil prices and the return of foreign Western traders after Christmas holidays helped some Gulf Arab equity indices to regain territory Wednesday.

A resilient Dubai Financial Market defended its lead position in the region as its general index gained 0.60 percent to reach 1, 603.71 points lifted by banks in particular. Dubai Islamic Bank added one percent, while Shuaa Capital jumped 15 percent to hit 0. 583 Dirham (0.15 U.S. dollars), representing a 6-week high.

Speculations on a turnaround of the oldest Emirati investment bank, which aims to become profitable in 2013 after years of losses, fuelled the surge. Shuaa has applied for an additional Islamic banking license and started to build up a division for high net worth in order to reach a last-minute deal with the oppositional Republican party to avoid the "fiscal cliff".

This helped oil price-sensitive markets like the Kuwait Stock Exchange which gained half a percentage point and the Saudi Tadawul index, which ended up 0.5 percent.

Shares of Riyad Bank closed 0.43 percent lower at 23 Saudi riyal (5.98 U.S. dollars). Earlier in the day, the bank said it will recommend to shareholders to distribute cash dividends for the second half of 2012 of 975 million (253.5 milion U.S. dollars) at 0.65 riyal (0.17 U.S. dollars) per share.

Earlier in the week on Sunday, investment bank NCB Capital, owned 90 percent by Saudi Arabia's largest lender National Commercial Bank (not listed), said it remained an overweight rating on Riyad Bank, albeit due to its low non-performing loan coverage ratio NCB Capital expected provision charges to remain high which might limit profit growth in the short term.

The Abu Dhabi market measure ADXGI slipped 0.38 percent, finishing at 2,618.68 points. United Arab Bank or UAB closed even at 3 Dirham (0.81 U. S. dollars).

Earlier in the day, UAB said it obtained a club loan facility of 125 million U.S. dollars in a "landmark deal" for the bank. Germany's Commerzbank acted as the co-ordination and facility agent as well as a lead arranger. Other arranging lenders included Standard Chartered Bank, Commercial Bank of Qatar, National Bank of Abu Dhabi, which ended flat at 10.30 Dirham (2.80 U.S. dollars) and Dubai-listed Emirates NBD, closing 0.71 percent higher at 2.83 Dirham (0.77 U.S. dollars). This facility has a duration for two years with the option to extend it to three years, at a margin of 150 Basis Points over LIBOR.

The funds will be used for general corporate purposes, said UAB 's CEO Paul Trowbridge in an e-mailed statement. Endi

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