By Muhammad Idris

July 18 (Reuters) - Abu Dhabi's index closed higher on Friday, boosted by a rise in oil prices after the European Union imposed new sanctions on Russia, while Dubai's index fell as investors booked profits from the past five sessions' gains.

The European Union's sanctions on Moscow over the war in Ukraine include new measures targeting oil and energy, and the G7 lowered the price ceiling for Russian crude oil purchases to $47.6 per barrel.

Oil prices, a catalyst for financial markets in the Gulf region, rose 0.75 percent to $70.04 a barrel by 1106 GMT.

Abu Dhabi's main index posted gains for the fourth session, rising 0.2 percent, driven by a 1.7 percent jump in E& Telecom shares and a 0.5 percent rise in First Abu Dhabi Bank shares.

Dubai's main index fell 0.2 percent, ending a five-day winning streak after hitting a 17.5-year high in the previous session.

The losses were driven by a decline in financial sector stocks, with Emirates NBD shares falling 2.4 percent after three consecutive sessions of gains, while Commercial Bank of Dubai shares fell 3.6 percent.

Air Arabia shares rose 0.8 percent, extending gains after the low-cost airline's Abu Dhabi branch announced plans to increase operational capacity by 40 percent by 2025.

The Dubai index was subject to profit-taking on Friday, but its continued rise last week pushed it to a key resistance level. Ahmed Najm, head of market research for the Middle East and North Africa at XS, said that corporate earnings releases scheduled for next week could provide the necessary impetus to overcome the difficulties.

Dubai's index rose 4.1 percent on the week, while Abu Dhabi's index rose 2 percent, marking its fourth week of gains, according to data from the London Stock Exchange Group.

Najm said that markets remain stable, supported by positive corporate earnings and stable oil prices, although global developments continue to impact investor confidence.

(Prepared by Abdel Hamid Makkawi for the Arabic Bulletin - Edited by Amira Zahran)