The benchmark Saudi index led the losses and declined by a further 0.3% on Wednesday with financials leading the way. Al Rajhi Bank and Saudi British Bank were down 1% and 3.4% respectively.
The index rallied for five days last week, triggered by a lending boom as small investors sought funds to invest in Saudi Aramco's public listing.
Fitch Ratings said on Tuesday that Aramco's IPO would have a limited direct fiscal impact in Saudi Arabia but could help offset renewed government austerity measures by allowing the Public Investment Fund to boost domestic investments.
Dubai's index closed up 0.2% with Dubai Islamic Bank (DIB) gaining 1.7%, a day after it called a shareholders meeting on Dec. 17 to approve the acquisition of Noor Bank.
The sharia-compliant lender's unit Dubai Islamic Insurance and Reinsurance rose 4.6%, while Emaar Properties was up 1.2%.
The Abu Dhabi index edged down 0.1% with Abu Dhabi Commercial Bank dropping 1% and telecoms firm Emirates Telecommunications slipping 0.4%.
The index found some support from First Abu Dhabi Bank and National Bank of Ras Al Khaimah which closed 0.1% and 3.3% higher respectively.
The Qatari index lost 0.2% with Qatar International Islamic Bank down 5.3% in its biggest fall since March and Mesaieed Petrochemical down 0.8%.
Egypt's blue-chip index eased 0.2%, stretching a losing streak to an eighth consecutive session, led by a 2.7% slide in EFG Hermes and a 2.5% fall in El Sewedy Electric.