UPDATE 4: All seven bourses extend drop from the previous session amid fears of global recession.
Gulf stocks fell sharply again on Monday, extending losses from the previous session as recession fears gripping investors in Europe spilled over into markets in the region.
Dubai's benchmark closed at its lowest level since March 2005, Saudi Arabia's dropped to its lowest level since at least January 2007 and Bahrain's hit its lowest close since May 2007.
Emaar Properties led the fall in Dubai as the main index breached the 3,000-point mark, dropping 5.8 percent to 2,922 points.
In Abu Dhabi, the index lost 2.01 percent to finish on 3,321 points as First Gulf Bank dropped 10 percent.
Saudi's benchmark fell 4.15 percent as the country's central banker said the bourse's declines are due to poor investor sentiment and not economic fundamentals.
The main index, which has fallen more than 50 percent this year, closed at 5,301 points, dragged down by Saudi Basic Industries Corp. (SABIC), which fell 7 percent.
Kuwait's bourse ended lower as the fall out from the central bank's move to save Gulf Bank continued to rattle investor sentiment.
The main index ended 2.22 percent lower at 9,889 points on broadbased weakness, particularly among financial stocks.
Gulf Finance House ended off 6.73 percent while United Gulf Bank dropped 6.67 percent.
In Qatar, Commercial Bank of Qatar lost 6.34 percent as a slew of stocks shed more than 9 percent. The Qatar index closed down 1.46 percent at 6,792 points.
The Bahrain index fell 2.9 percent at 2,142 points.