The all-share benchmark ends 0.7 percent lower at 6,501 points and the banking index loses 1 percent.

Heavyweight Al-Rajhi Bank drops 1 percent.

The petrochemical sector ends 0.5 percent as petrochemicals giant Saudi Basic Industries (SABIC) sheds 0.7 percent.

Oil prices fell on Friday, with US crude slumping to a four-month low under $93 as a dimmer economic outlook and the European debt crisis drove crude to its biggest weekly loss since early May.

The banking index earlier dropped 0.4 percent.