Dubai stocks closed 8.5 percent higher on Tuesday as investors responded to reports that the United States and its allies were considering a diplomatic approach rather than military strikes on Syria.
It's the largest one-day jump for that market since 2009, when a $10 billion bailout from neighboring Abu Dhabi helped the emirate avert a default.
Syria on Tuesday moved quickly to accept a proposal from Russia that it give up its chemical weapons, hoping to avert a military strike from the United States. While expressing skepticism about the plan, President Barack Obama said Monday that Russia's proposal could be "potentially a significant breakthrough."
The threat of retaliatory strikes has grown increasingly pronounced since what is believed to have been a chemical attack by the Syrian government killed 1,400 Syrian civilians in August.
Shares on the Dubai Financial Market have been among the best performing, and most volatile in the world. On Friday, CNBC reviewed a roller-coaster two-week ride for the index.