Barring Kuwait stock market, which dropped slightly on domestic political concerns, most of the remaining six markets rose sharply on the back of abundant liquidity.
Investors in the region remained confident despite the continuing stand-off between the United States and Iran over Tehran's controversial nuclear program.
The biggest gainer was the Dubai Financial Market, which surged 24.7 percent over September to close at 5,279.29 points, spurred mainly by giant real estate companies, as well as financial and investment firms.
The DFM Index has gained 27.9 percent since the end of last year, but remains below its peak of 8,484.60 points set in November 2005.
Organization Petroleum Exporting Corporation kingpin Saudi Arabia's bourse, the largest bourse in the Arab world, also showed signs of recovery after the market authority introduced more regulation.
The Saudi Tadawul All-Shares Index surged 10 percent in October to 8,621.45, led by gains in the industrial, insurance and agriculture sectors.
It is now 8.7 percent up on its 2006 close of 7,933.29 points, but still has a long way to catch with its all-time record high of 20,634.86 points set in February last year before it began to nosedive.
The market authority last week introduced a new trading system with the aim of increasing transparency and controls, and plans to restructure the market to increase the number of sectors from nine to 14.
Investors in Saudi Arabia, the world's largest oil exporter, were buoyed by the news that oil prices struck a record high of $93.80 Monday.
The Abu Dhabi Securities Market shot up 20 percent in October to finish at 4,271.51 points. The market has, so far, surged 42.4 percent from last year's close, but again remains well below its peak of 6,237.98 points reached in May 2005.
The Kuwait Stock Exchange Index ended October down 0.6 percent at 12,767.00 points, mainly because of a sharp drop in the past few days triggered by domestic political disputes and profit-taking.
However, the index has gained 26.8 percent on last year's close of 10,067.40 points, although it remains below a new all-time high of 13,175.20 set October 21.
In Qatar, the Doha Securities Market ended the month at 9,417.41 points October, up 16.3 percent. Since the start of the year, it has surged 32 percent, but remains below its all-time high of 12,892.80 points set in September 2005.
Strong gains were also recorded in the smaller stock markets in Oman and Bahrain, which were the only ones not to drop last year.
The Muscat Securities Market was up 14.8 percent in October to close on 8,021.20 points and is now 43.7 percent higher on the 2006 close of 5,581.60.
The Bahrain Stock Market finished the month 4.1 percent higher at 2,648.50 points, a new all-time high and is now up 19.4 percent on last year's close of 2,217.60 points.
Capitalization of the seven markets has risen by more than $200 billion since the start of the year to $950 billion, but their value remains sharply below their end-2005 capitalization of $1.143 trillion.
© 2007 Agence France-Presse
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