Markets in the United Arab Emirates and Qatar plunged further on Sunday as concerns over their real estate sectors undermined investor sentiment.

Saudi Arabia's market continued to fall, a day after suffering its biggest one-day loss in six months.    Oman bucked the trend, after investor confidence was boosted following a meeting between the market regulator, the government and local pension funds.

In Dubai, shares in Emaar Properties <EMAR.DU> touched their lowest level in nearly 3-1/2 years, dragging down the benchmark <.DFMGI> 4.64 percent lower.

'Concerns in the (UAE) real estate sector are mostly to do with recent regulation limiting secondary sales in order to dampen speculation,' said Rami Sidani, head of Mena investment at Schroders Investment Management.

'I think these moves are exacerbated by Ramadan and through declines in global stock markets,' he said.   The real estate sector suffered in Abu Dhabi also, with  Aldar Properties and Sorouh Real Estate losing 8.77 percent and 8.48 percent respectively.

Banks led losses in Qatar as fears of a slowdown in the country's real estate market raised concerns over the future of consumer loans, said Amro Motasim, chief trader at Ahli Bank.

'There are worries that there will be a slowdown in the coming months in Qatar's real estate sector as there are rumours of new laws prohibiting big price moves,' he said.

Commercial Bank of Qatar and Qatar Islamic Bank ended down 5.41 per cent and 4.1 per cent respectively.-Reuters