Feb 20 (Reuters) - Dubai stocks rose on Wednesday, extendinga rally that began last week after real estate companiesreported fourth-quarter earnings that beat expectations. Othermajor Gulf markets were lifted by financial stocks.

In Dubai, the index .DFMGI rose 1.5 percent, boosted bybanks and real estate stocks. Dubai Islamic Bank DISB.DU gained 1.4 percent.

Emaar Properties EMAR.DU jumped 3.2 percent, continuingthe gains driven by better-than-expected profit for the fourthquarter.

DAMAC Properties DAMAC.DU gained 0.8 percent, encouraged by strong earnings from other real estate companies.

Property firms, which have been a drag on the index,displayed signs of recovery in their fourth-quarter results andmore construction contracts. They remained a long way from their2014 peak and were still vulnerable to falling property prices.

Dubai residential property prices, which have fallen 25percent to 33 percent in nominal terms since 2014, are likely tofall another 5 to 10 percent this year. That would approach thelows reached in 2010 following the financial crisis, Reutersreported, citing S&P Global Ratings. urn:newsml:reuters.com:*:nL5N20E0Z0

Islamic Arab Insurance SALAMA.DU surged 5.4 percent inheavy volume, rebounding from losses it suffered early this weekafter reporting a 98 percent drop in full-year net profit.

Saudi Arabia's index .TASI was up 0.4 percent with most ofits banks rising. Samba Financial Group 1090.SE added 3.3percent and Riyad Bank 1010.SE gained 1 percent.

Rabigh Refining and Petrochemical 2380.SE dropped 2.3percent, however, after its full-year profit more than halved. urn:newsml:reuters.com:*:nL5N20F1IB

Qatar index .QSI rose 0.7 percent after a recent spate ofselling. The Gulf's best stock market last year, Qatar sharesare down 6.8 percent so far this year.

Qatar Islamic Bank QISB.QA was up 2.3 percent while QatarNational Bank rose 1.1 percent.

The Abu Dhabi index .ADI was up 0.3 percent with Abu DhabiCommercial Bank ADCB.AD adding 3.1 percent.

(Reporting by Shakeel Ahmad in Bengaluru, editing by LarryKing) ((shakeel.ahmad.thomsonreuters.com@reuters.net;))