Saudi shares closed 1.1 per cent lower after oil prices fell to a seven-week low. The all share dropped to 6,216 points and heavyweight Saudi Basic Industries Corporation fell 2.3 per cent, dragging the petrochemical index down 1.8 per cent to 5,278 points.

The banking index shed nearly one per cent, led by Samba Financial Group which drops 3.1 per cent.

Saudi shares fell as much as 1.6 per cent in early trading with only six out of 126 listed firms making gains after oil prices plunged to a seven-week low and signs of instability in the euro zone increase.

The Saudi benchmark fell to 6,183 points before slightly recouping losses to 6,209 points. The export-oriented petrochemical index made the biggest losses among sector indices.

Heavyweight Saudi Basic Industries (Sabic) fell 2.6 per cent. US crude oil for March delivery on Friday settled down $1.95 at a seven-week low of $71.19 per barrel.

Europe's deepening debt crisis is topping the agenda of a meeting of G7 rich country finance leaders in the Canadian Arctic amid fears that Greece's fiscal sickness was spreading.-Reuters