DUBAI - Shares of Sudanese companies listed in the United Arab Emirates soared on Sunday after the United States said it was lifting sanctions on Sudan, while construction firm Drake & Scull led Dubai higher.

In Abu Dhabi, Sudatel Telecom SDTL.AD rose by its 15 percent daily limit to 0.69 dirham, its highest level since April, in heavy trade. A Dubai-listed Sudanese bank, Al Salam Bank Sudan SSUD.DU , also gained 15 percent but in much smaller trading volume.

Citing progress on counter-terrorism and improvement in human rights, Washington lifted 20-year-old sanctions against Sudan that had effectively cut the country off from much of the global financial system, raising costs and risks for Sudanese firms.

The Dubai index .DFMGI rose 0.6 percent as Drake & Scull DSI.DU , the most heavily traded stock, surged 4.7 percent. The stock has been rising sharply since last Wednesday after it completed a capital restructuring that involved Tabarak Investment receiving 500 million new shares.

Investment bank Shuaa Capital SHUA.DU jumped 5.6 percent, also in unusually heavy trade. It had been hovering near its lowest levels for this year.

Saudi Arabia's index .TASI fell 0.9 percent as petrochemical shares weakened after a drop in global oil prices at the end of last week; Saudi Basic Industries 2010.SE lost 1.1 percent.

But National Agriculture Development Co 6010.SE climbed 3.8 percent after saying it had signed a memorandum of understanding with dairy firm Al Safi Danone Co, a partner of France's Danone DANO.PA , to examine the possibility of NADEC acquiring Al Safi in a deal which would leave current Al Safi shareholders owning 38.75 percent of NADEC.

Top Saudi dairy producer Almarai 2280.SE , which could eventually be hurt by stiffer competition from the merged company, dropped 2.0 percent.

Qatar's index .QSI , which had tumbled as much as 1.6 percent during the day to just above 8,000 points, rebounded sharply towards the close and finished 0.1 percent higher. But the most heavily traded stock, Vodafone Qatar VFQS.QA , lost 3.4 percent.

The index has sunk to five-year lows in recent days because of sanctions imposed on Qatar by other Arab states. Partly because of the sanctions, data last week showed Qatar's economy grew in the second quarter at its slowest rate since the global financial crisis.

On Saturday the government announced measures to help private sector businesses, such as rent reductions in Qatar's logistics zones, but it was not clear that this would do much to revive weak business sentiment.

Egypt's index .EGX30 gained 0.8 percent on the back of a 10 percent leap by Arab Cotton Ginning ACGC.CA .



HIGHLIGHTS



SAUDI ARABIA



* The index .TASI fell 0.9 percent to 7,194 points.



DUBAI



* The index .DFMGI rose 0.6 percent to 3,611 points.



ABU DHABI



* The index .ADI climbed 0.4 percent to 4,430 points.



QATAR



* The index .QSI edged up 0.1 percent to 8,138 points.



EGYPT



* The index .EGX30 gained 0.8 percent to 13,998 points.



KUWAIT



* The index .KWSE edged down 0.02 percent to 6,661 points.



BAHRAIN



* The index .BAX rose 0.4 percent to 1,279 points.



OMAN



* The index .MSI dropped 0.9 percent to 5,168 points.

(Reporting by Andrew Torchia; Editing by Keith Weir) ((andrew.torchia@thomsonreuters.com)(+9715 6681 7277)(Reuters Messaging: andrew.torchia.thomsonreuters.com@reuters.net))