* Saudi falls in broad sell-off in lowest volume for a year

* Petchems hit as crude prices fell 5 pct over last 10 days

* Qatar rises as investors buy on price dips

* Real-estate developers lead decliners in Egypt

* Credit Suisse expects better performance for Gulf in near-term

By Celine Aswad

DUBAI, Sept 18 (Reuters) - Equity investors dumped Saudi Arabian stocks on Sunday, deterred by a recent downturn in global equity and oil markets while Qatar's index held on to small gains as traders bought shares on price dips.

Riyadh's index .TASI pulled back 1.9 percent on the first day back following a 10-day Eid al-Adha break. But trading volume was the lowest since last September.

Oil-related companies were hit with Saudi Kayan Petrochemical 2350.SE declining 2.3 percent in heavy trade, after Brent futures LCoc1 fell by around 5 percent during the 10 days the Riyadh bourse .TASI was closed.

Banking shares were also weak with heavyweight National Commercial Bank 1180.SE dropping 4.2 percent.

Key interest rates in Saudi Arabia are linked to U.S. interest rates, given the currency's peg to the dollar, and the uncertainty over Wednesday's U.S. Federal Reserve meeting following a week of mixed U.S. economic data weighed on sentiment. However, the market viewed the likelihood of a U.S. rate rise as low.

Qatar's share index .QSI climbed 0.4 percent in active trade, with volume the highest in a month as investors bought back some shares which were hit by profit taking before the holiday.

Islamic lender Masraf Al Rayan MARK.QA was the most traded share and added 0.7 percent while telecommunication operator Ooredoo ORDS.QA jumped 3.9 percent.

Shares in companies set to be included in index compiler FTSE's secondary emerging market index on Sept. 20 outperformed last month.

Dubai's index .DFMGI steadied and added 0.03 percent after it fell 1.1 percent on Thursday, when it reopened after a week-long holiday.

Shuaa Capital SHUA.DU surged 9.3 percent. Shares in the investment firm have surged 36.5 percent over the past three weeks since the firm started to offer liquidity services for Nasdaq Dubai's single stock futures trades. Shuaa is the only firm offering market-making facilities to brokers.

GFH Financial Group GFH.DU added 2 percent, extending its 1 percent gain from Thursday after the company said its Dubai-based subsidiary GFH Capital sold its remaining 18 percent stake in English football club Leeds United.

In neighbouring Abu Dhabi, blue chips dragged the index .ADI 0.3 percent lower. First Gulf Bank FGB.AD lost 0.8 percent and telecommunication giant Etisalat ETEL.AD edged down 0.3 percent.

Egypt's index of the 30 most valuable stocks .EGX30 fell 0.8 percent in thin trade as roughly two-thirds of the shares declined.

Real-estate developers were some of the top losers with Talaat Mostafa Group TMGH.CA shedding 4.4 percent and Porto Group PORT.CA declining 3.7 percent.





MORE POSITIVE OUTLOOK

Over the next three-to-six months Credit Suisse expects a better performance from Gulf equities, supported by a more positive outlook on oil prices and stabilizing earnings forecasts.

"Valuations are reasonably attractive, being in line with the long-term average... Technicals suggest the worst is behind us, though we believe it is too early to turn outright bullish."

Analysts see further downside risks to Saudi Arabia, Qatar and Bahrain and they favour shares in the UAE, especially companies in Dubai.







SUNDAY'S HIGHLIGHTS



SAUDI ARABIA

* The index .TASI fell 1.9 percent to 6,060 points.



QATAR

* The index .QSI added 0.4 percent to 10,572 points.



DUBAI

* The index .DFMGI rose 0.03 percent to 3,483 points.



ABU DHABI

* The index .ADI dropped 0.3 percent to 4,486 points.



EGYPT

* The index .EGX30 fell 0.8 percent to 7,916 points.



BAHRAIN

* The index .BAX rose 0.3 percent to 1,128 points.

 (Editing by Elaine Hardcastle) ((celine.aswad@thomsonreuters.com; +971562247653; Reuters Messaging: celine.aswad.thomsonreuters.com@reuters.net))