Oil prices slid to six-week lows before recovering some ground, as China said it was moving to tap reserves after a Reuters report that the United States was asking large consuming nations to consider a stockpile release to lower prices.

The bid by the US to cool markets, asking China to join a coordinated action for the first time, comes as inflationary pressures - partly driven by surging energy prices - start to produce a political backlash.

Saudi Arabia's benchmark index dropped 1%, weighed down by a 1.8% fall in Al Rajhi Bank and a 1.7% decline in petrochemical maker Saudi Basic Industries Corp .

In Abu Dhabi, the index edged up 0.1%, helped by a 2.4% rise in Alpha Dhabi Holding after its subsidiary Trojan General Contracting formed a joint venture to construct Guggenheim Abu Dhabi.

Separately, the United Arab Emirates signed 23 agreements with local and international companies worth around 22.5 billion dirhams ($6.1 billion) during the first four days of the Dubai Airshow, the Ministry of Defence said on its official Twitter account on Thursday.

Dubai's main share index rose 0.1%, with blue-chip developer Emaar Properties putting on 0.8%, while Deyaar Development jumped 4.4%, rising for a sixth consecutive session.

Major Gulf bourses mixed in early trade

On Sunday, Deyaar reported a quarterly net profit of 8.2 million dirhams ($2.23 million), up from 4.5 million dirhams year ago.

Dubai Financial Market announced an incentives program to encourage initial public offerings and listings from private sector companies.

The Dubai index registered its sixth weekly gain.

In Qatar, the index gave up early gains to close 0.1% lower, hit by a 0.8% fall in Qatar Islamic Bank.

Outside the Gulf, Egypt's blue-chip index declined 1%, dragged down by a 1.9% slide in top lender Commercial International Bank.

SAUDI ARABIA dropped 1% to 11,710

ABU DHABI gained 0.1% to 8,349

DUBAI added 0.1% to 3,265

QATAR eased 0.1% to 11,950

EGYPT down 1% to 11,338

BAHRAIN was up 0.2% to 1,791

OMAN rose 0.3% to 4,064

KUWAIT gained 0.2% to 7,883

Dubai's main share index gained 1%, buoyed by a 14.8% surge in Dubai Financial Market - gaining for a 10th session in 12.

Earlier this month, the emirate announced plans to launch a 2 billion dirham ($545 million) market-maker fund and initial public offerings of 10 state-backed companies as part of plans to boost activity on the local bourse.

Dubai plans to list its Salik road toll system on the Dubai Financial Market, the emirate's deputy ruler, Sheikh Maktoum Bin Mohammed, said on Saturday.

Emaar Properties climbed 1.6%, a day after the developer's founder said plans to sell 50% of Namshi app to foreign and local investors.

On Sunday, Emaar reported quarterly net profit of 1.02 billion dirhams, up from 359 million dirhams year ago.

Among other gainers, Deyaar Development jumped 15% and Amlak Finance soared 14.8%.

In Abu Dhabi, the index gained 1%, to an-all-time high of 8,352 points, with the country's largest lender First Abu Dhabi Bank rising 2.4%.

Sanad, the global aerospace engineering and leasing solutions company wholly-owned by Mubadala, has secured a new US$100 million evergreen revolving credit facility with First Abu Dhabi Bank.

Dubai outperforms most Gulf bourses, Abu Dhabi at peak

Saudi Arabia's benchmark index eased 0.1%, hit by a 3.3% fall in National Industrialization Company and a 0.1% decrease in Al Rajhi Bank.

The Saudi stock market was in negative territory as it failed to surpass its latest peak. Investors moved securing their gains while the stagnating oil prices remove important support, said Farah Mourad, senior market analyst of XTB MENA.

"However, the market could see limited price corrections thanks to strong fundamentals."

Egypt's blue-chip index declined 0.7%, extending losses from the previous session.

Investors move to secure their gains while oil stagnates, and inflation worries return, said Mourad.

SAUDI ARABIA eased 0.1% to 11,827

ABU DHABI climbed 1% to 8,352

DUBAI gained 1% to 3,287

QATAR added 0.1% to 11,994

EGYPT lost 0.7% to 11,413

BAHRAIN was up 0.3% to 1,787

OMAN up 0.1% to 4,033

KUWAIT added 0.6% to 7,864