The Dubai bourse fell by 2% to 2,500 points to its lowest level in more than five years with a sharp decline in shares of real estate and banks, followed by losses Abu Dhabi Stock Exchange.
Shares in the market fell collectively and sharply, out of the 37 companies were trading on Monday shares fell 28 companies.
Union Properties fell 10% to trade at its lowest level in more than five years while Emaar Properties fell 4.6%, its lowest close in more than five years.
The Abu Dhabi bourse fell 1% to 4,789 points under pressure from bank losses.
Shares of Abu Dhabi's first stock market plunged 0.9% after the stock leader left the bank's asset management group, Reuters quoted two well-informed sources as saying.
Abu Dhabi Islamic Bank fell 3.8%. Egypt's Abu Dhabi Islamic Bank (ADIB) said on Sunday it expected its 2019 earnings to drop to 85, due to tax changes in Egypt.
Dana Gas fell 7.5% and Aldar fell 3%.
The Saudi Arabia's largest stock market fell in the Arab world, with its benchmark index tumbling 0.3% to 7,819 points, led by a decline in leading shares in the banking and petrochemicals sector.
Riyad Bank fell 2.3%, while Saudi Basic Industries Corp (SABIC) fell 0.7%.