Oil prices fell nearly 2pc on Wednesday, weighed down by weaker demand outlook and a rise in US crude inventories despite growing expectations of ongoing OPEC-led supply cuts.

Saudi's index was down 0.3pc in early trading with Al Rajhi Bank dropping 0.8pc and lender Samba Financial Group dipping 0.7pc.

The Gulf's best performing major market eased back after gaining in the last four sessions.

The index is still up 14pc year-to-date, boosted by foreign investors, who have been net buyers of Saudi stocks every month this year.

Late last month, the Saudi equity market joined the MSCI Emerging Market index, which is expected to trigger billions of dollars of foreign fund inflows.

Qatar's index also fell 0.5pc, again weighed down by financial stocks. Qatar Islamic Bank traded 1.4pc lower while Qatar National Bank edged down 0.5pc.

But in Dubai it was real estate shares pushing the index  down 0.4pc after four straight sessions of gains.

The emirate's major developer Emaar Properties shed 1.5pc, while its only telecommunications operator DU lost 1.2pc.

The Abu Dhabi index also edged lower 0.1pc, pulled down by banking shares. National Bank of Ras Al-Khaimah  slipped 2.1pc and First Abu Dhabi Bank, the United Arab Emirates' biggest lender, eased 0.3pc.

Qatar this week placed further restrictions on First Abu Dhabi Bank as it continues a probe into alleged currency manipulation begun after the UAE and other Arab states launched a boycott against Qatar in mid-2017.