Stock markets in the United Arab Emirates declined in early trading, led by telecom stocks, on fears a global recession could hit the local markets.

"There is lack of confidence and people are worried because of this bad picture globally," says Chahir Hosni, sales manager at EFG-Hermes.

Major economies such as Germany and Japan have slipped into recession.

Emirates Telecommunications Corp declined 2.27 percent and the Abu Dhabi index edged down 0.06 percent to 2,845 points.

Du telecom and Dubai Financial Market Co slide 6.16 percent and 5.78 percent respectively, pushing Dubai's benchmark 1.16 percent lower to 2,118 points.

Kuwait's benchmark falls 0.49 percent to 8,510 points, led by Kuwait Projects Co, which falls 4.81 percent.

Bank Muscat edges up 2.09 percent, lifting Oman's benchmark up 1.3 percent to 5,946 points. -Reuters