Gulf Arab bourses declined on Tuesday as a fall in oil prices and expectations of weak fourth-quarter earnings weighed on investors sentiment.

In the United Arab Emirates, real estate and bank stocks were the hardest hit. Dubai's Emaar Properties fell 4.84 percent, leading the index to close 2.76 percent down, its biggest one-day drop in almost 3 weeks.

National Bank of Abu Dhabi lost 3.65 percent, while Sorouh Real Estate <SOR.AD> ended 5.96 percent down.

"The market is very fragile because of the global situation," said Ahmed Hamdy of Prime Emirates.

"Real estate in the whole world is hit. The real problem is in the banking sector. Once banks start lending again, the real estate problem will be solved," he quipped.

Expectations that companies may post weak fourth-quarter earnings was also weighing on the markets, he said. "Everyone has a pessimistic look to what is going to happen in the future."

Qatari shares also fell as investors held off ahead of results season, with the Doha benchmark declining 1.95 percent.

Oman's index also fell, ending 1.64 percent. lower. Banks and petrochemical stocks led the Saudi benchmark to close lower, with Al Rajhi Bank and Sabic falling 1.24 percent and 2.23 percent respectively.

"It's mainly the oil price and people are speculating on company results," said Abdullah al-Aqeel, equity trader at Samba Financial Group.

Oil fell towards $36 a barrel on Tuesday to its lowest level in three weeks as further signs the world economy was slowing sharply dampened demand expectations.-Reuters