Property stocks weighed on UAE markets, while Qatar's bourse also declined as volumes slumped to seven-month low. Dubai's index ended 0.3 per cent lower at 1,579 points.

Traders focus on real estate stocks. Deyaar and Arabtec dropped 0.3 and 0.7 per cent respectively. Tabreed ended 0.7 per cent lower after the district cooling firm said Abu Dhabi state-owned fund Mubadala now holds a 26.1 per cent stake.

This follows the completion of a tender offer of shares to repay an Islamic bond due this month.

Mortgage lender Tamweel bucked the downward trend, rising 0.3 per cent to Dh0.9. The stock had been volatile traded since resuming trade on May 10 following a 30-month suspension.

The stock remained cheap compared to UAE banking sector stocks, Jaap Meijer, AlembicHC senior analyst, wrote in a research note. 'Tamweel's book value per share is Dh2.25,' he added.

Abu Dhabi's index closed 0.3 per cent lower at 2,647 points, its fifth decline in seven sessions. Sorouh Real Estate dropped 2.2 per cent and heavyweight National Bank of Abu Dhabi slipped 0.9 per cent.

Elsewhere, Qatar's index fell 0.4 percent to 8,607 points, its lowest close since May 9. Volumes slumped to their lowest level since October 31, while losers outnumbered gainers 15 to four.

Bank and property stocks weighed on Qatar's index in the early trading as investors awaited a government announcement on increasing foreign ownership limits for securities, a condition for an index upgrade by compiler MSCI.

'We are of the view that we will hear about Qatar foreign ownership law soon - (it) could come imminently,' says Tarek Lotfy, Arqaam Capital Head of Mena equities. 'That would bode well for the market.'

MSCI will announce at its June review whether it will upgrade Qatar to emerging market status. It is currently ranked as a frontier market. The benchmark slipped 0.3 per cent to 8,614 points, down for five of the past seven sessions.

Qatar National Bank and Barwa Real Estate slipped 0.4 and 0.6 per cent respectively-Reuters