The index fell 2.5 percent to its lowest finish since Oct. 11.

“The market is acting cautiously,” said Osama Mourad of Arab Finace Brokerage. “It was falling dramatically in the first minutes of trading and then recovered slowly because of the mixed messages we are receiving from the media. Investors are worried about the implications for elections.”

Orascom Construction Industries, Egypt’s biggest listed developer, fell 3.3 percent and Commercial International Bank dropped 3.1 percent. 

In Saudi Arabia, the benchmark index gained 0.1 percent to 6,207 points. 

In Kuwait, the benchmark ended lower, dropping 0.6 percent to its lowest close since Oct. 5 as domestic political unrest weighed on sentiment.

Logistics provider Agility fell 5.1 percent and National Real Estate Co. plunged 6.8 percent.

“Agility and related companies had a fantastic run based on a variety of unsubstantiated rumors, but Kuwait is now seeing more serious protests than it had previously, which has given investors an excuse to start selling off these names,” said Julian Bruce, EFG-Hermes director of institutional equity sales.

“This is spreading to the rest of the Kuwait market, even into well-supported names like National Bank of Kuwait (NBK).”

NBK fell 3.5 percent.

In Dubai, Emaar Properties fell 2.6 percent, the main drag on the index, which made its largest decline in three weeks.

In Abu Dhabi, the index slumped to a four-week low and Qatar also ended lower as some investors cut their exposure to regional equities.

“Investors are cautious because of the external backdrop, particularly the euro zone situation,” added EFG’s Bruce.

“(UAE) turnover was a little bit better, which indicates there are some buyers accumulating in select names, but these are exercising caution and are predominantly local rather than Western institutions.” 

World stocks fell on Friday as many investors continue to fear a spread of the euro zone debt crisis into core European economies.