Major Gulf markets rose in early trade on Tuesday, mostly lifted by financial stocks, while Qatar was boosted by its blue-chip shares.
The Qatari benchmark, up 0.6%, saw broad-based gains, with telecom firm Ooredoo jumping about 6%.
Qatar's foreign minister on Monday received the new Saudi ambassador to Doha, the first to be reinstated by Arab states after they agreed to end a dispute with Qatar earlier this year.
Riyadh stands to benefit economically from the thaw with wealthy, gas-producing Qatar.
Saudi Arabia's benchmark index gained 0.5%, with Al Rajhi Bank rising 0.7%, while Saudi National Bank, the kingdom's biggest lender, firmed 0.6%.
Yemen's warring parties are thrashing out terms for a peace deal that would extricate the kingdom from a costly war and help alleviate a devastating humanitarian crisis, Reuters reported, citing two sources close to the talks and a Houthi official.
One of the sources said Riyadh was open to a deal but "would need some additional guarantees from Oman and Iran", both with close ties with the Houthis.
Dubai's main share index added 0.2%, helped by a 0.8% rise in sharia-compliant lender Dubai Islamic Bank and a 1.5% increase in budget airliner Air Arabia.
Dubai's state airport operator is hoping for a "flood" of travellers as the pandemic eases, targeting passenger traffic through Dubai International Airport to grow 8% to 28 million this year.
In Abu Dhabi, the index edged up 0.1%, with aquaculture firm International Holding gaining 0.6%.
(Reporting by Ateeq Shariff in Bengaluru; editing by Uttaresh.V) ((AteeqUr.Shariff@thomsonreuters.com; +918061822788;))
