Dubai's index tumbled 5.3 percent in a broad sell-off. Emaar Properties, Dubai's largest listed developer, topped trading volume as it lost 8.1 percent.
However, shares in low-cost carrier Air Arabia bucked the trend and jumped 2.0 percent after the firm said on Monday it had bought a 49 percent stake in Jordan's Petra Airlines and would establish a hub in the country.
The carrier may also benefit from the sustained drop in oil prices.
Elsewhere in the Gulf, Abu Dhabi's index fell 2.8 percent, Kuwait lost 1.4 percent and Oman's bourse slipped 0.6 percent.
Brent futures hit a fresh 5-1/2-year low of $52.66 a barrel on Monday as markets remained oversupplied. They edged up early on Tuesday but traded below $54. Global equities tumbled as investors sought the safety of bonds.
The US S&P 500 index had its worst day in almost three months on Monday, dropping 1.8 percent.
On Tuesday, MSCI's broadest index of Asia-Pacific shares outside Japan is down 1.5 percent and Japan's Nikkei has dropped 2.6 percent.