* Egypt index falls 4.8 pct to new 2-yr low
* Saudi, UAE, Qatar bourses at 5-month lows
(Updates with markets closing in Egypt, Saudi Arabia)
By Yasmine Saleh and Nadia Saleem
CAIRO/DUBAI, Aug 9 Egyptian shares led a
regional decline on Tuesday, dropping 4.8 percent to a new
two-year low, as stocks tracked U.S. and European markets lower
on worries for the global economy.
The Saudi bourse, the Arab world's largest, and markets in
the United Arab Emirates and Qatar fell to their lowest levels
since March, when the Middle East was hit by political unrest.
"Definitely what we are seeing in the market today is a
direct reaction to what is going on in the global markets," said
Tarek Abaza, trading manager at Naeem Brokerage in Cairo.
"Many clients are afraid to buy stocks even at their low
prices," he added.
All 30 firms on the index fell, with financial firm
Pioneers Capital dropping 6.1 percent and Orascom
Telecom losing 3.2 percent.
World stocks sank sharply for a 10th session running on
Tuesday, racking up a 20 percent loss since early May.
Higher-than-expected inflation data from China added to investor
concerns, with the United States slowing and its credit rating
downgraded, and Europe reeling under a debt crisis.
A sharp drop in oil prices added to concerns for Gulf
states, like Qatar and Saudi Arabia, which are heavily reliant
on oil-driven revenues.
The Saudi index fell 0.8 percent to its lowest close
since March 7, as bellwether Saudi Basic Industries Corp
(SABIC) lost 1.3 percent and Al-Rajhi Bank
dropped 0.7 percent.
"I expect the regional markets to rebound strongly as soon
as the global markets stabilize," said Shakeel Sarwar, head of
asset management at investment bank SICO in Bahrain.
"However, if oil falls below $70 in a sustained decline,
there will be a negative impact on regional economies."
Dubai's index fell 2 percent to its lowest close
since March 9. Abu Dhabi's benchmark dropped 1.3 percent
to its lowest close since March 8.
"Sentimental factors like panic, fear and lack of confidence
are dictating the direction of markets rather (than)
fundamentals of companies," said Mohammed Yasin, CAPM Investment
chief investment officer. "Hence it is very difficult to say
where this will stop in the short term."
Dubai heavyweights Emaar Properties and Emirates
NBD lost 2.8 percent and 2.3 percent respectively.
In Abu Dhabi, Aldar Properties sagged 3.3 percent,
Dana Gas tumbled 5.2 percent and First Gulf Bank
was off 4.1 percent.
Qatar's index shed 1.8 percent to close at its lowest
level since March 8.
Heavyweight Industries Qatar slumped 4.1 percent.
"As the dust settles, a lot of regional investors will look
at their backyards and feel more confident," said SICO's Sarwar.
"Yes, nobody wants to catch a falling knife but there are good
buying opportunities out there."
Oman's index lost 1.8 percent, crossing a two-year
Large-caps tumbled, with Bank Muscat falling 3.1
percent while and Bank Dhofar slumping 5 percent.
In Kuwait, the index fell 1.3 percent, hitting a
fresh seven-year low. Logistics firm Agility slumped
* The benchmark dropped 4.8 percent 4,478 points.
* The index slipped 0.8 percent to 6,009 points.
* The index tumbled 2 percent to 1,444 points.
* The index declined 1.3 percent to 2,578 points.
* The benchmark fell 1.8 percent to 8,071 points.
* The index slumped 1.8 percent to 5,505 points.
* The measure dropped 1.3 percent to 5,882 points.
* The measure slipped 0.7 percent to 1,265 points.
(Editing by Firouz Sedarat)