Dubai bourse changed its direction to close lower on Tuesday under pressure from real estate stocks, while leading banks supported Qatar's bourse to outperform key regional markets.
Dubai's index fell 0.5%, with all property stocks on its list falling.
Emaar Properties, the largest listed developer in the emirate, fell 2.3%, while its units, Emaar Malls Group and Emaar Development, fell 2.1% and 2.2% respectively.
Dubai's bourse, one of the Gulf's worst performers in August, posted its biggest one-day gain in three and a half years on Monday.
Residential property prices in Dubai have fallen by at least a quarter since mid-2014 amid the oversupply of the property market, an important sector of the emirate's economy.
It is estimated that the market, which contributes about 7% to GDP, may fall further due to large supply and low oil prices.
Dubai on Monday set up a supreme property planning committee to regulate entrepreneurship and avoid competition between parastatals and private companies, a move aimed at countering the downturn in the property market.
Abu Dhabi's main index fell 1% as First Abu Dhabi Bank, the largest bank in the United Arab Emirates, fell 1.1% and Abu Dhabi Commercial Bank fell 2.6%.
The main index of the Saudi market fell 0.6% under pressure Al Rajhi Bank fell 1% and Riyadh Bank fell 2.4%.
Investment bank EFG-Hermes said investment in Saudi banks was no longer tempting, partly due to a decline in "inert-fund" flows and concerns about credit quality.
In Qatar, the index rose 0.3%, extending gains for the fourth consecutive session, with the rise of Qatar International Islamic Bank 5.3%, while Qatar National Bank, the largest bank in the Gulf region by assets, 1.1%.
The following are the closing levels for the rest of the Middle East stock markets:
- Egypt: The index fell 0.7%
- Bahrain: The index rose 0.2%
- Oman: The index rose 0.4%
- Kuwait: The index rose 0.1%