In Saudi Arabia, banking and petrochemical stocks, representing the two largest sectors on the exchange, booked losses.
The Tadawul benchmark slipped 0.9 percent to its lowest close since March 23, extending losses after US crude dipped to a four-month low on Friday.
A dimmer US economic outlook drove crude to its biggest weekly loss since early May.
Bellwether Saudi Basic Industries Corp dropped 1 percent, Saudi Kayan Petrochemicals shed 1.1 percent and Saudi Arabian Fertilizers declined 0.8 percent.
Al-Rajhi Bank, the largest listed lender, fell 2.1 percent. Other banks also slid.
Egypt’s main index, meanwhile, rose 1.6 percent, with all but eight stocks rising.
“Nothing is moving the market but real estate stocks,” said Ashraf Akhnoukh, senior equity sales trader at CIBC brokerage.
“They were under the market’s microscope, with the government saying it will not penalize investors, only ministers.”
“It’s only a proposal but it might happen,” said Akhnoukh.
Palm Hills gained 4.7 percent while Egyptian Resorts climbed 9.2 percent. The two real estate developers have risen 13 percent and 9 percent respectively in the past five sessions.
Egypt’s interim government has indicated it is searching for a solution to a string of legal challenges to sales of state land by officials under former President Hosni Mubarak, which have helped deal a heavy blow to the property industry.
Abu Dhabi Commercial Bank helped lift the UAE capital’s index after saying it will record a net profit of $272 million from the sale of its 25 percent stake in Malaysian lender RHB Capital.
ADCB gained 1.9 percent, hitting a 24-month high. It is up 11.9 percent in June.
Abu Dhabi’s index climbed 0.5 percent to its highest close since November 2010.
Trading volumes in Kuwait fell to their lowest in more than two years, with investors concerned about the launch of a new trading platform.
The bourse signed up to implement the Nasdaq OMX trading platform in the first half of 2011, according to media reports.
“Investors are not happy with how the whole process is going and people think the market will tank so you have a day like today with low volumes,” said a Kuwait-based trader.
Hurdles to implement the new system include annual fees, the need for additional capital and lack of preparation on part of the brokerages, he added.
Kuwait’s index slipped 0.4 percent.
Telecom operator Zain fell 1.9 percent, Kuwait International Bank was down 1.5 percent and contractor Mabanee slipped 1.1 percent.
