Saudi Arabia's benchmark index tumbled to a 35-month low on Sunday and Dubai and Egypt's benchmarks hit their lowest closes of 2015 as a renewed slump in oil prices spurred a region-wide sell-off.

Saudi's benchmark fell 2.9 percent to its lowest finish since January 1, 2013 to take its losses this year to 17.4 percent.

Oil made its biggest weekly decline in eight months last week and US Light Crude fell 5.1 percent on Thursday and Friday alone, the latter declines coming after regional bourses last traded.

The sustained slump in oil prices has hurt state finances in the Gulf along with earnings in the important petrochemical sector.

"Gulf markets have been in a bearish mode for quite a while now; today's declines were triggered by the latest drop in oil prices," said Shakeel Sarwar, head of asset management at Securities & Investment Co (SICO) in Bahrain.

"Third quarter earnings have not been helpful either," he said, forecasting Gulf markets' earnings would fall 10-15 percent on average in 2015 based on results for the first nine months of the year.

Saudi Basic Industries Corp (Sabic) and fellow petrochemical producers Saudi Kayan each dropped 3 percent.

Almost all sectors declined in a broad sell-off. The banking index lost 2.7 percent.

"Investors are now realising oil prices won't recover any time soon," Sarwar said.

DUBAI DROP

Construction stocks headed losers as Dubai's index fell 3.7 percent to its lowest close since mid-December 2014

Drake & Scull plunged the maximum daily limit of 10 percent to an all-time low after the contractor reported a third-quarter net loss of 985 million dirhams ($268.18 million).

Builder Arabtec dropped 9.3 percent to take its losses to 85 percent from a May 2014 high, since when several senior management have left. It has reported widening losses in the past four quarters including a third-quarter loss of 944.8 million dirhams last week.

In Abu Dhabi, Etisalat dropped 1.6 percent as traders booked profits after MSCI said it would include the telecom operator in its emerging market index from November-end.

Etisalat's shares had gained 29 percent since June when the former monopoly said it would allow foreigners and institutions to own its shares, a prerequisite to join the index.

In Egypt, the main index fell 4.2 percent to a 23-month low as losers outnumbered gainers 26 to one.

HIGHLIGHTS

SAUDI ARABIA: The index fell 2.9 percent to 6,881 points.
DUBAI: The index dropped 3.7 percent to 3,146 points.
ABU DHABI: The index fell 2.5 percent to 4,097 points.
QATAR: The index rose 0.3 percent to 10,860 points.
EGYPT: The index dropped 4.2 percent to 6,522 points.
KUWAIT: The index fell 1.2 percent to 5,700 points.
OMAN: The index slipped 0.2 percent to 5,838 points.
BAHRAIN: The index dropped 1 percent to 1,221 points.  - Reuters