Dubai's main bourse dropped to its lowest level in more than two months amid worries that Ireland's bailout would not prevent another euro-zone debt crisis.
Plans by the emirate to sell shares of large companies and geopolitical tensions on the Korean peninsula also contributed to yesterday's drop.
The Dubai Financial Market General Index fell 1.3 per cent to 1,659.5. The property sector, a heavyweight on the exchange, was one of the worst hit as shares in Emaar Properties closed at their lowest since September.
The builder of the world's tallest tower closed 1.4 per cent lower at Dh3.60. Arabtec Construction fell 2.2 per cent to Dh1.80, and Deyaar Development fell nearly 1 per cent to 30 fils.
In the capital, National Bank of Abu Dhabi, the country's biggest bank and the highest gainer in early trading, closed up 0.4 per cent at Dh12.4. But Aldar Properties maintained its downward trend since June, falling nearly 2.7 per cent to Dh2.18.
The Abu Dhabi Securities Exchange General Index closed down 0.3 per cent at 2,749.67.
"Overall there's no clear plan ahead for the investor. The feeling is no one is paying attention to the market," said Ameed Kanaan, the general manager at Al Jazeera Financial Services.
The negative sentiment was felt in most of the region. Qatar, Bahrain and Kuwait indexes all fell 0.8 per cent - to 8,111.01, 1,426.98 and 6,868.80, respectively.
Oman's index rose 0.5 per cent to 6,582.29. It has been the best-performing GCC exchange this year, with shares rising 18 per cent, compared with Dubai's 7 per cent decline this year.
The Saudi Tadawul All-Share Index finished 0.2 per cent higher at 6,309.97.