DUBAI, Jan 24 (Reuters) - Saudi Arabia's stock market continued rebounding in early trade on Tuesday, while Egypt pulled back amid selling by foreign investors.

The Saudi index climbed 1 percent in the first 80 minutes, adding to Monday's 1.7 percent gain.

Mouwasat Medical Services jumped 4 percent after saying its board was recommending a cash dividend of 2.5 riyals per share for 2016, up from 2 riyals in the previous year. The company reported an estimate-beating 34.2 percent rise in fourth-quarter profit last week.

Food maker Savola surged 4.1 percent. It had dropped 2 percent on Sunday after reporting a shock fourth-quarter net loss, but jumped 5.4 percent on Monday.

With the fourth-quarter earnings reporting season more or less over, many Saudi companies have posted flat or weak profits because of government austerity measures and a sluggish economy. More than half a dozen major firms, including Savola and several banks, missed analysts' estimates by large margins.

But stocks in most companies which missed estimates have recovered strongly, suggesting investors are looking towards improvement in the non-oil economy this year as the government's introduction of austerity measures slows.

Kuwait's index edged up 0.3 percent in heavy trade. The index is up more than 16 percent since the end of last year, causing funds and individual speculators to pile into the market to catch the momentum.

Dubai's index was up 0.3 percent as Gulf Finance House, a speculative favourite and the most heavily traded stock, jumped 7.9 percent. It also soared during the day on Monday but gave up all its gains by the close.

In Qatar, the index gained 0.7 percent as Islamic bank Masraf Al Rayan rose 4.1 percent.

Egypt sank 1.6 percent as bourse data showed non-Arab foreign investors, who have been net buyers of stocks since the Egyptian pound was floated on Nov. 3, were sellers by a small margin.

Sidi Kerir Petrochemicals jumped 6.4 percent to 19.25 pounds, however. Last week Beltone Financial raised its fair value estimate for the stock to 32.3 pounds from 17.68 pounds, citing stronger global oil prices among other factors.

(Reporting by Andrew Torchia, editing by Louise Heavens) ((andrew.torchia@thomsonreuters.com; +9715 6681 7277; Reuters Messaging: andrew.torchia.thomsonreuters.com@reuters.net))