Dubai's benchmark fell 0.7 percent to 1,375 points — its lowest close since March 7, when regional markets were tumbling in the early stages of the Arab Spring political turmoil. In Abu Dhabi, the benchmark slipped 0.3 percent to a 22-month low.

In Saudi Arabia, petrochemical and banking stocks weighed on the Tadawul All-Share Index, which fell 0.5 percent as quarterly earnings announcements failed to excite investors.

Riyad Bank dropped 1.7 percent despite posting a 30 percent rise in its third-quarter net profit, beating forecasts. Investors were concerned about quarter-on-quarter growth, which was hit by provisioning, analysts said.

Some traders said sentiment in Gulf markets was also dampened by the demonstrations against financial speculation and economic inequality in Europe and the United States at the weekend, although it was unclear whether the protests would have any lasting economic or political impact.

The bright spot in the Middle East was Egypt, where the benchmark index gained 1.5 percent to 4,214 points, continuing a rally which traders believe is due to ultra-cheap valuations and the index's approach last week to strong chart support at a multi-year low of 3,380 points. The index has risen for the past four days but is still down 41 percent on the year.

In Kuwait, bargain hunters picked up battered stocks and the index rose 0.5 percent to 5,899 points, but is still down 15 percent for the year.

Elsewhere, Industries Qatar rose 0.8 percent. It reported a 48 percent jump in quarterly net profit on Wednesday, and has been climbing since then.

Qatari banks also gained with Commercial Bank of Qatar up 1.4 percent, Masraf Al-Rayan rising 0.7 percent and Qatar National Bank up 0.5 percent. 

Oman's heavyweight Bank Muscat gained 1.5 percent, climbing for a second session since reporting a 16 percent increase in third-quarter profit, beating forecasts. Muscat's index rose 0.4 percent to 5,538 points, trimming 2011 losses to 18 percent.