Saudi Arabia's stock market rose on Tuesday on the back of its blue-chip banks, while Dubai's gains were led by its top lender Emirates NBD.

Saudi Arabia's index gained 0.4 percent, with Al Rajhi Bank climbing 0.6 percent after the Capital Market Authority approved an increase in capital. The bank proposed a capital increase of up to 25 billion riyals ($6.67 billion) from 16.25 billion riyals.

National Commercial Bank was up 0.4 percent. Ratings agency Moody's said the bank's brand and diversified assets make it resilient to slower economic growth in Saudi.

Saudi Arabia's impending entry into emerging market indexes should mean a $15 billion inflow of "passive" benchmark-linked funds, which will attract billions more of active funds, regardless of low oil prices or geopolitical tensions.

Saudi's Almarai climbed 1.5 percent after the firm said it would acquire Premier Foods LLC. The acquisition has an enterprise value of 108 million riyals.

In Dubai, the index rose 0.4 percent with Emirates NBD, its largest bank, gaining 1.2 percent. The company called a shareholders meeting on Feb. 20 to approve the issue of non-convertible securities.

Emaar Malls, a unit of the emirate's largest listed developer Emaar Propertie, increased 2.7 percent.

Commercial Bank of Dubai added 1.1 percent after its board proposed a full-year cash dividend of 20.7 percent of share capital.

The Abu Dhabi index rose 0.2 percent with Emirates Telecommunications gaining 0.5 percent.

First Abu Dhabi Bank added 0.1 percent for its fourth straight session of gains. The United Arab Emirates' largest lender has gained after proposing an increase in its foreign ownership limit to 40 percent from 25 percent.

Qatar's index fell 0.5 percent as Commercial Bank declined 4.1 percent despite reporting a higher full-year net profit and proposing a cash dividend of 1.5 riyal per share for the same period.

($1 = 3.7503 riyals)

($1 = 3.6405 Qatar riyals)

(Reporting by Ateeq Shariff in Bengaluru; Editing by Mark Potter) ((AteeqUr.Shariff@thomsonreuters.com; +918067497129;))