From Atiq Sharif

February 8 (Reuters) - Most Gulf stock markets closed higher on Sunday after positive progress in talks between the United States and Iran over Tehran's nuclear program, while Egypt's index ended the day at a new record high.

Iranian Foreign Minister Abbas Araqchi said that nuclear talks between Iran and the United States, mediated by Oman, had started "well" and were set to continue, in remarks that could help calm fears of another war breaking out in the Middle East if no agreement is reached.

The Saudi index ended trading today up 0.3 percent, driven by a 0.5 percent rise in Al Rajhi Bank shares.

Shares in Saudi Aramco Base Oils Co. (Luberef) rose 3.5 percent after the company increased its dividend payout for the second half of the year.

Milad Azar, market analyst at XTB Middle East and North Africa, said that market sentiment was boosted by the diplomatic meeting, which eased previous geopolitical pressures on regional indices.

He explained, "The market appears poised to continue its upward trajectory, supported by strong non-oil economic fundamentals and growth prospects for this year, while investors await further fourth-quarter earnings announcements from major companies such as Aramco."

The index in Qatar rose 0.5 percent, benefiting from a 1.1 percent gain in shares of Industries Qatar.

The Bahrain index closed at 2,060 points. Meanwhile, the Omani index gained 2.2 percent, and the Kuwaiti index added 0.7 percent.

Outside the Gulf region, the Egyptian stock market index rose for the fourth consecutive session to close 0.6 percent higher, recording its highest level ever.

The Egyptian Cabinet said in a statement on Saturday that Cairo had signed a $3.5 billion deal to allocate an additional 410 MHz of new frequency spectrum to the country's mobile operators, describing it as "the largest frequency deal in the history of the telecommunications sector since mobile services began in Egypt."

Azar noted that this rise was supported by improved macroeconomic conditions, which boosted overall market sentiment.