Almarai Co., the Gulf's biggest dairy firm by market value, shed 1.1 percent after it posted a first-quarter net profit gain of just 0.5 percent, Reuters said.

"Almarai's numbers disappointed due to pressures from rising raw material prices," said Amro Halwani, a senior trader at Shuaa Capital in Riyadh.

Saudi Electricity Co. fell 5.3 percent after it went ex-dividend.

"Investors are far more selective than they have been in recent weeks resulting in mixed performance within sectors with no major trend to talk of," said Halwani.

The Saudi Tadawul All-Share Index (TASI) slipped 0.87 percent to 6,548.42 points. The sector activity for the day was mostly negative except two gaining sectors. The losing sector ranged from 0.47 percent by the Cement sector to 4.93 percent by the Energy & Utilities sector. On the other hand, the Retail sector and the Media and Publishing sector gained 0.07 percent and 0.41 percent respectively. The overall market breadth for the day was negative with 29 advancers against 109 decliners giving it an AD ratio of 0.26, the Financial Transaction House (FTH) — licensed by the Capital Market Authority — said in its daily market commentary.

The Saudi stock market turnover reached SR5.52 billion on Tuesday.

UAE markets edged lower as trading was range-bound and Air Arabia lost 1.5 percent to 0.74 dirham, its lowest close ever.

Analysts said the fall was insignificant, but first-quarter earnings for the airline will be hit by fuel cost pressures.

"Market has been trading in a range, after a strong performance in mid-February," Reuters Quoted Marwan Shurrab, vice-president at Gulfmena Alternative Investments, as saying.

"We are waiting for a catalyst to move to a higher close above these levels - which in our view will be Q1 results."

Dubai's benchmark fell 0.7 percent to 1,538 points and Abu Dhabi's index slipped 0.4 percent to 2,590 points, a new three-week low.

Heavyweight Etisalat weighed for a second day, falling 0.5 percent. First Gulf Bank lost 1.8 percent, also extending Monday's losses.

Egypt's benchmark index extended losses, weighed by a deteriorating economic outlook and widening budget deficit. Egypt's main benchmark fell 0.4 percent to 5,470 points, after Monday's 1.2 percent drop as violence at a soccer match sparked investors fears over broader security.

Qatar's index rose 0.4 percent to 8,496 points — a six-week high, with Qatar Telecom adding 3.1 percent as investors bought into the stock's long-term valuation.

"People are becoming slightly more bullish on Qatar," said Robert Pramberger, acting head of asset management at The First Investor. "Within GCC, it's one of the overweight markets, where people would invest a large proportion of money."

Oman's index edged higher for a third day, up 0.3 percent, as Galfar Engineering which gained 4 percent after a tender board classification for local contractors that may lead to a beneficial price escalation clause, analysts said.

Kuwait's index ended almost flat to a week-high, supported by telecom operator Zain which gained 1.5 percent. The measure climbed 0.04 percent to 6,304 points.

The Bahraini index added 0.3 percent to 1,418 points.