Stronger Oil May Lift Gulf Markets; Arabtec May Fall on Poor Q4

Gulf markets may rise on Sunday, catching up with Friday's global rally in oil and equities prompted by a weaker dollar, but Dubai builder Arabtec may come under pressure after swinging to a fourth-quarter loss and cutting dividends.

Brent rose 1.6 percent to $55.32 per barrel on Friday while U.S. crude futures for April delivery jumped 4 percent to settle at $45.72 as the dollar posted its biggest weekly decline against the euro in more than three years.

A dovish message from the U.S. Federal Reserve last week also fuelled risk appetite among global investors, who started snapping up equities again. The Nasdaq index posted its highest close in 15 years on Friday, while the FTSEurofirst 300 posted its highest close since mid-2007.

Oil was the main driver of Gulf equities last week and its rebound is likely to boost investor sentiment in the region.

However Dubai's Arabtec, one of the last major Gulf firms to report its earnings this season, posted an unexpected fourth-quarter loss, blaming non-recurring general and administrative expenses.

Arabtec reorganised itself and laid off some executives and staff after the abrupt departure in June last year of former chief executive Hasan Ismaik, who resigned after differences of opinion with Aabar Investments, a key shareholder.

The company, whose shares are among the most traded on Dubai's bourse, also proposed no cash dividend for 2014, but offered a 5 percent bonus share issue.

In Saudi Arabia, a weaker dollar is positive for Savola Group, which halved its outlook for first-quarter profit before capital gains last week, partly because of suffering exports. The Saudi riyal is pegged to the dollar. Savola tumbled its daily 10 percent limit on Thursday.

In Doha, Commercial Bank of Qatar may fall as its shares no longer entitle investors to the 2014 dividend. Saudi Arabia's Yanbu National Petrochemicals Co, Southern Province Cement and Abdulmohsen Alhokair Group for Tourism and Development are also going ex-dividend. \

(Reporting by Olzhas Auyezov; Editing by Andrew Torchia)