Jan 2 (Reuters) - Most stock markets in the Gulf nudged higher in early trade on Thursday with the Saudi index rising on the back of financial shares, although gains were limited in the absence of fresh factors.

Saudi Arabia's benchmark index .TASI edged 0.1% higher, helped by a 2.2% rise in Al Rajhi Bank 1120.SE and a 1.7% increase in Elm Company 7203.SE.

Oil prices, a catalyst for the Gulf's financial markets, nudged higher in the first day of trade for 2025, as investors returning from holidays cautiously eyed a recovery in China's economy and fuel demand following a pledge by President Xi Jinping to promote growth. O/R

Dubai's main share index .DFMGI inched up 0.1%, with toll operator Salik Co SALIK.DU gaining 1.7%.

On the other hand, the Abu Dhabi index .FTFADGI dropped 0.8%.

Separately, Abu Dhabi's Mubadala Investment Company accounted for about 20% of the almost $136.1 billion spent by sovereign wealth funds worldwide last year, overtaking Saudi Arabia's wealth fund amid a surge in spending from Gulf countries.

(Reporting by Ateeq Shariff in Bengaluru; Editing by Varun H K)

((AteeqUr.Shariff@thomsonreuters.com; +918061822788;))