Dubai's index slumped to a fresh 29-week low as local investors cashed out ahead of the weekend and foreign funds found little reason to enter the market at current valuations.

Emirates NBD fell 3 percent, Drake & Scull  shed 3.7 percent and Aramex declined 1.6 percent.

The benchmark slipped 0.5 percent to 1,432 points, its lowest close since March 8 as volumes hit a five-week peak.

"Foreigners will remain on the sidelines, locals are invested but it's a small club to start with anyway," said Hashem Montasser, managing partner at Frontlane Capital, a Dubai-based asset management firm. "The value has not come down enough compared to other emerging markets."      

Foreign ownership limits in Gulf equities and other regulatory restrictions are a major deterrent for foreign funds, he added.

Abu Dhabi's benchmark ended near-flat, down 0.05 percent at 2,533 points. Elsewhere, Qatar's index fell 0.3 percent to close at 8,394 points, extending its 2011 decline to 3.3 percent.

Kuwait's Zain dragged down the bourse to a four-week low after bidders in affiliate Zain Saudi  pulled out saying the terms of the deal were not met.

Zain ended 3.1 percent lower, while National Investment Company, owned by Zain's largest shareholder Khafari Group, dipped 1 percent.     

Batelco rose 0.5 percent, against the Bahraini index which fell 1.5 percent to close at 1,166 points.

In Oman, Bank Dhofar dropped 2.7 percent, weighing on the index which slips to a five week low. The benchmark ended 0.2 percent to 5,603, its lowest close since August 25.  - Reuters