Dubai led declines among stock markets in the Gulf on Monday, as sentiment was weighed by a fall in global equities and oil prices.
Global shares skidded as investors fretted about the spillover risk to the global economy from property group China Evergrande's troubles, while eyeing a week packed with global central bank meetings. read more
Dubai's main share index (.DFMGI) retreated 1.2%, as most of the stocks on the index finished lower, including its top lender Emirates NBD (ENBD.DU), which lost 1.4%.
The fall in Dubai stocks could prove temporary as strong local fundamentals continue to improve. Thanks to sanitary improvements, the local tourism industry is outperforming its equivalent in other countries, said Wael Makarem, senior market strategist Exness.
In Abu Dhabi, the index (.ADI) dropped 0.8%, weighed by country's largest lender First Abu Dhabi Bank (FAB.AD) and telecoms firm Etisalat (ETISALAT.AD), which fell 1% each.
Saudi Arabia's benchmark index (.TASI) fell 0.6%, with Al Rajhi Bank (1120.SE) losing 0.6% and petrochemical maker Saudi Basic Industries Corp (2010.SE) falling 1.3%.
A stronger dollar kept oil under pressure, with crude also taking a hit from energy companies in the U.S. Gulf of Mexico resuming production after back-to-back hurricanes in the region shut output.
The recovery in U.S. crude production capacity and doubts about demand levels in Asia are eroding the support base for the market. The main index has declined below its trend line and could see some corrections, Makarem said.
The Qatari index (.QSI) lost 0.4%, hit by a 1.1% fall in Qatar Islamic Bank (QISB.QA).
Outside the Gulf, Egypt's blue-chip index (.EGX30) slid 1.6%, extending losses to a third consecutive session, as almost all the stocks on the index declined, with Commercial International Bank Egypt (COMI.CA) leading losses.
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