Most stock markets in the Gulf extended losses on Monday, as investors remained worried about aggressive monetary tightening tipping the world into a recession.
The main share index (.DFMGI) in Dubai, the Middle East's travel and tourism hub, dropped 1.6%, as most of the stocks were in negative territory including blue-chip developer Emaar Properties (EMAR.DU), which was down 2.6%.
In Abu Dhabi, the index (.FTFADGI) declined 1.1%, with the country's biggest lender First Abu Dhabi Bank (FAB.AD) losing 1%.
Last week, the United Arab Emirates' central bank increased its base rate by three quarters of a percentage point to 3%, mirroring the U.S. Federal Reserve's biggest hike since 1994. Central banks in Qatar and Saudi Arabia also raised their rates.
The UAE dirham, like most Gulf currencies, is pegged to the dollar.
The Qatari index (.QSI) fell 0.4%, hit by a 4.5% fall in sharia-compliant lender Masraf Al Rayan (MARK.QA).
Bucking the trend, Saudi Arabia's benchmark index (.TASI) gained 0.6%, a day after it registered its biggest intraday fall in nearly seven months.
Al Rajhi Bank (1120.SE) rose 1.1%, while Sahara International Petrochemical Company (2310.SE) advanced 4.2%.
The Saudi market rebounded as traders moved to buy the dip after two weeks of price declines, said Wael Makarem, senior market strategist at Exness.
"Overall the market remains soft and could see an impact from the turbulent oil market."
Oil prices, a key catalyst for the Gulf's financial markets, were stable as tightening supplies offset concerns about slowing global economic growth.
Saudi Arabia's April crude exports rose to a two-year peak of 7.382 million barrels per day (bpd) in April, data from the Joint Organizations Data Initiative (JODI) showed on Monday.
Outside the Gulf, Egypt's blue-chip index (.EGX30) retreated for a seventh session in a row to close 0.5% lower.
According to Makarem, local and regional investors moved in to buy the dip, while the market is still witnessing selling pressure from international investors looking to cut their risks.
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