Gulf bourses fell sharply on Monday, with real estate and bank stocks the hardest hit as worries over the global economy persisted.

Dubai's main index fell 7.61 percent to 3551 points, its biggest one-day loss since March 2006 and its lowest close since April 2005, as investors fled the emirate's stricken property sector.

Shares in Emaar Properties and Union Properties both fell 10.7 percent and 11.5 percent respectively. Construction firm Arabtec lost nearly 15 percent, its biggest one-day fall since May 2006.

"Investors have gotten to a level where they simply don't want to be exposed to the UAE real estate market," said Mohamed Alami, head of the international desk in the UAE at Naeem Shares & Bonds.

In Abu Dhabi, Aldar Properties and Sorouh Real Estate also ended more than 9 percent lower.

The Abu Dhabi benchmark ended 5.61 percent lower, its largest one-day fall since January.

Saudi Arabia's main index plummeted 9.81 percent, its biggest one-day loss in at least 22 months.

"It's clear that the market is declining due to massive losses in the region and that's due to the falls in the United States," says Abdullah Al-Aqeel, equity trader at Samba Financial Group.

"Everything is hit, banks, telecoms -- everything is 'limit down'," he says.

The Muscat benchmark plunged almost 7 percent, its biggest single-day loss since January, with Bank Muscat and National Bank of Oman among the worst performing stocks.

"There is general panic-selling in Oman...global sentiment is affecting the market," says Adel Nasr, local brokerage manager at United Securities.

In Qatar, the main index slid more than 4 percent as worries about the health of the global economy intensified an ongoing foreign sell-off.

"Foreign institutions are heavily selling in the market. Some of them are exiting completely," said Amro Motasim, chief trader at Ahli Bank.

"One of the reasons for the sell-off is the turmoil in the United States and possibly now Europe," he said. Kuwait's main index  ended 3.45 percent down, led by bank stocks and shares in Mobile Telecommunications Co (Zain), which fell 7.35 percent, its largest one-day drop since August 2005.

DUBAI: Dubai's benchmark fell 7.61 percent to 3,551 points. News of merger talks between mortgage lender Tamweel and Amlak Finance in the previous session did little to help their shares, which fell 10.51 percent and 11.67 percent respectively.

A report by Zawya Dow Jones suggesting that Union Properties and Deyaar were also considering a merger did not help their shares either, ending 11.5 percent and 9.9 percent lower respectively.

ABU DHABI: Abu Dhabi's measure declined 5.61 percent to 3,558 points. National Bank of Abu Dhabi and First Gulf Bank  ended 8.2 percent and 9.3 percent lower respectively.

SAUDI ARABIA: Saudi Arabia's main index fell 9.81 percent to 6,726 points. Saudi Basic Industries Corp (Sabic) and Saudi Fertiliser both ended 9.9 percent lower. Al Rajhi Bank, Samba Financial Group and Riyad Bank all closed nearly 10 percent lower.

KUWAIT: Kuwait's measure fell 3.45 percent to 11,951 points. Gulf Bank and National Bank of Kuwait ended 6.78 percent and 3.49 percent lower respectively. Kuwait Finance House closed 2.94 percent down.

QATAR: Qatar's main index closes 4.49 percent lower at 8,275 points. Shares in Qatar National Bank and Industries Qatar both ended more than 6 percent lower, while Qatar Gas and Transport closed more than 3 percent down.

OMAN: The Muscat index closed 6.7 percent down at 7,702 points. Bank Muscat and National Bank of Oman ended 6.14 percent and 9.7 percent lower respectively. Oman Cables Co and Oman Telecommunications Co (Omantel) close 9.9 percent and 6.45 percent lower.

BAHRAIN: The index closed 1.53 percent down at 2,416 points, led lower by banking stocks. Gulf Finance House and Ithmaar Bank end 10 percent and 9 percent lower respectively. -Reuters