Shares in Kayan, a unit of Saudi Basic Industries Corp. (SABIC), fell 6.7 percent to a five-month low. Heavyweight SABIC dropped 2.1 percent to its lowest close in seven weeks.   

Kayan said its quarterly net loss surged to SR190.8 million ($50.9 million) from a loss of SR4.11 million a year earlier period, citing lower petrochemical prices. 

"This was supposed to be Kayan's first quarter of commercial operations and their loss was disappointing," said Farouk Miah, acting head of research at NCB Capital. "This is bad because it means SABIC's results will be worse than expected and hence the sector is down." 

After trading closed, SABIC reported a 10 percent drop in quarterly earnings, missing forecasts.

National Industrialization (Tasnee) fell 3.3 percent after reporting a 42.7 percent rise in earnings, but  missing an analyst estimate.

Banque Saudi Fransi slipped 1.2 percent after its quarterly net profit fell 6.8 percent, missing forecasts.

Al-Rajhi Bank, the largest Saudi lender by market value, fell 1.4 percent. 

The Kingdom's benchmark Tadawul All-Share Index (TASI) ended 0.8 percent lower at 6,370.16 points, slumping to its lowest close since Dec. 21. 

In Egypt, the main index gained 1.2 percent to 3,877 points, climbing for a sixth session in seven, with Ezz Steel extending a rally after reports last week saying it had resolved a dispute over factory licenses. 

"The (license) decision is not final yet," said analyst Omar Taha at Beltone. "They are still in negotiations. Market talk suggests that the agreement is close to being finalized. Obviously it's positive, and the market is foreseeing this."    

Ezz shares, which slumped in 2011, surged 7.9 percent, the most actively traded stock on the index. 

In the UAE, markets ended mixed with Abu Dhabi-listed Dana Gas ending flat after saying it will honor the outstanding $920 million on an Islamic bond maturing in October. 

The stock rose up to 8.8 percent intraday, recovering from an all-time low. Dana shares are down 17.8 percent in January.  

"Some investors believing that at this level, Dana offers an attractive entry point. The stock looks like it has been oversold," said Abid Riaz, financial adviser at EFG-Hermes. 

Investors remained cautious on the lack of clarity from the energy firm on how it will be able to meet its debt obligations. 

Dana said it had appointed an international firm to advise on its $920 million convertible sukuk.

Abu Dhabi's index fell 1.4 percent to 2,293 points — its lowest close since February 2009.  

"Nobody is willing to take the risk to come and buy at this point, it would be like catching a falling knife," said Sebastien Henin, portfolio manager at the National Investor. "There is money on the sidelines (in UAE), but people are waiting and watching for something interesting." 

Telecoms operator Etisalat dropped 4.2 percent and Abu Dhabi Commercial Bank shed 1.1 percent.  

Dubai's benchmark climbed 0.7 percent to 1,310 points, rising from Monday's all-time closing low. 

In Qatar, the index ended 0.5 percent lower at 8,600 points with losers outnumbering gainers 14 to seven.