The Saudi stock market, the largest in the Arab world, dived almost six per cent to a four-year low on Saturday as leading industrial nations met to tackle a global financial crisis.

The Tadawul All-Shares Index (Tasi) finished down 5.94pc at 5,794.87 points, its lowest level since mid-2004.

Fourteen of the market's 15 sectors fell, with an 8.5pc drop in the key petrochemicals sector. Constructions fell by 9.3pc and retails by 8.9pc.

In trading, 118 listed firms dipped with only seven firms rising. The Saudi market is the only Gulf financial market that opens on Saturday.

The new decline came despite statements by the Saudi Arabian Monetary Agency that it was ready to inject more than $93 billion into the kindgom's banking system. The banks index dropped by 4.8pc.

It also came despite a number of companies announcing impressive results.

Saudi Arabian Fertilisers Company announced a 155pc rise in nine-month profits and Saudi British Bank posted a 19pc rise.

TASI suffered turbulence in the trading week ending on Thursday, cut to three days by a religious holiday, and dropped 17.4pc.

The bourse in the world's top oil exporter is the largest in the Middle East, but with capitalisation having been slashed to around $300bn from about $450bn at the end of last year. The TASI is currently down 47.5pc from last year's close.

Stock markets in other Gulf states sustained heavy losses last week. The declines were led by the market in Dubai, which nosedived by about 25pc.

Gulf economists have attributed the slide in the Gulf markets to panic from the impact of global financial turmoil that has strongly shaken investor confidence and led to a wave of sell-offs.