Middle East markets were mixed, with some tracking weaker world stocks, which fell after the US Federal Reserve said it was ready to pump billions of new dollars into the US economy, signaling the depths of its concern over growth.

Risk sentiment has proved contagious since the financial crisis struck and so regional performance to year-end will in part depend on how global markets fare, but some analysts remain bullish on the Middle East.

"Overall, things look positive," said Haissam Arabi, chief executive and fund manager at Gulfmena Aternative Investments.

"We will have some pull back to see the second leg of the rally which would begin in mid-October all the way to January. This will not be a straight line and it's only natural to see some profit taking."

The Saudi stock market was closed on Wednesday for National Day holiday.

In Dubai, Emaar Properties fell 2.9 percent and Union Properties dropped 1.7 percent. 

Traders said stocks were overbought following the UAE's classification as an emerging market by FTSE group, as well as relief Dubai World had agreed a $24.9 billion debt restructuring deal with creditor banks.

"I think the length of the rally surprised most people," said Matthew Wakeman, managing director for cash and equity-linked trading at EFG Hermes. "It seems to be a technical rally that's run out of steam."

Dubai's index fell 1.6 percent to 1,674 points, its biggest decline since June 29, to trim its September gains to 12.8 percent.

"Valuations are still compelling, but the question is whether there are the catalysts for an ongoing rally," said Hashem Montasser, EFG-Hermes head asset management.

The Abu Dhabi index fell 0.3 percent to 2,631 points.

Qatar National Bank fell 0.5 percent, weighing on Doha's index, but declines are seen as temporary.

"People are waiting for third-quarter results, which are expected to be better than the first and second quarters - this is usually the case in the yearly earnings cycle," said Mohamed Abu Ghoush, head of equities brokerage at Ahli Bank.

The index fell slightly to 7,637 points, but is up 9.7 percent in 2010.

"Qatar's sustainable economic performance is a strong support factor for its equities market," added Abu Ghoush. "What we're seeing now is a true reflection of the economic performance of Qatar." 

The country's economy is forecast to grow 16 percent in 2010.

The Kuwaiti index rose 0.4 percent to 6,845 points.

The Omani index rose 0.7 percent to 6,462 points.

The Bahraini index climbed 0.2 percent to 1,441 points.