Markets suffer across the Gulf

Gulf markets fell sharply on Tuesday, extended losses into a third day this week as uncertainty about the global economic outlook continued to grip investors.

The drop was led by Dubai, which plummeted over seven percent, while Abu Dhabi and Saudi Arabia both tumbled around 4.5 percent.

Dubai Financial Market Co., Emaar Properties and Arabtec Holding led the drop in Dubai, with Dubai Financial Market dropping the maximum 10 percent limit and Emaar and Arabtec falling 9.88 percent and 9.85 percent respectively.

The main index closed down 7.29 percent at 2,343.15 points.

In Abu Dhabi the benchmark ended 4.87 percent lower on 2,975.28 points, dragged down by real estate stocks. Sorouh Real Estate tumbled 9.48 percent and Aldar Properties fell 8.45 percent.

"What I see is continued selling as we see that further liquidation of portfolios has not stopped. The share price decline is causing further negative sentiment and we haven't seen any catalysts [to stop it]," said Eric Swats, partner at Rasmala Investments.

"Lending rates in the Emirates have not declined like they have in the US. The cost of funds are still very high, so that creates constraints on funding."

In Saudi Arabian the benchmark closed down 5.21 percent at 5,465 points. Market heavyweight Saudi Basic Industries Corp. (SABIC) slid 7.17 percent.

In Doha the measure fell 6.25 percent to 6,342.48 points, with banking stocks pacing the losses. Commercial Bank of Qatar and Qatar Islamic Bank led the drop, down 8.05 percent and 7.76 percent respectively.

Kuwait's main index finished down 2.16 percent at 9,056.10 points. National Bank of Kuwait (NBK) fell 7.04 percent and Kuwait Finance House dropped 6.1 percent.

Muscat's main index closed down 1.99 percent on 6,568.58 points, with National Bank of Oman sliding 3.97 percent.

Bahrain's benchmark ended 2.74 percent lower on 2,105.97 points.