From Ateeq Sharif

March 9 (Reuters) - Saudi Arabia's stock market closed higher on Sunday, breaking a three-day losing streak after oil prices rose on Friday.

Oil prices, a key driver of Gulf financial markets, rose on Friday but retreated from session highs after U.S. President Donald Trump threatened to impose sanctions on Russia if it did not reach a ceasefire with Ukraine.

The Saudi Stock Exchange index rose 0.2 percent, supported by a 1.5 percent rise in Aramco shares.

Aramco's stock has been falling since Tuesday when the company reported a drop in annual profits and indicated it would cut its dividend by about a third this year to $85.4 billion.

Meanwhile, preliminary government data showed on Sunday that the kingdom's economy grew 1.3 percent year-on-year in the fourth quarter of 2024, supported by increased non-oil and government activities.

In Qatar, the index rose 0.1 percent, with Qatar Islamic Bank shares rising 0.5 percent.

Bahrain's main index closed down 0.1 percent at 1,974 points.

Oman's main index closed up 0.6 percent to 4,420 points.

Kuwait's main index fell 1.1 percent to 8,569 points.

Outside the Gulf, Egypt's benchmark index closed 0.6 percent higher, with EFG Hermes up 3 percent.

Analysts and bankers expect foreign investors to extend their holdings in Egyptian treasury bonds, benefiting from the recovery witnessed last year with the support of the International Monetary Fund and Emirati investments that helped stabilize the country's economy.

(Prepared by Sherine Abdel Aziz for the Arabic edition - Edited by Ali Khafagy)