Saudi stocks jumped in early trade on Wednesday after the Capital Market Authority said it plans to ease foreign ownership limit on listed companies, while UAE markets extended losses on broad sector weakness.

Saudi Arabia's benchmark stock index surged 4.9%, on track to mark its largest single-day gain in over five years, driven by broad sector strength following the Capital Market Authority’s announcement that it is close to easing foreign ownership limits currently capped at 49%, Bloomberg News reported.

Shares of Al Rajhi Bank, the world’s largest Islamic lender, surged 10%—the sharpest percentage gain in nearly two decades—hitting the maximum permitted daily trading limit. Saudi National Bank also soared 10%, marking its largest gain since its 2014 listing.

Oil behemoth Saudi Aramco added 0.8%. Aramco’s talks to acquire a minority stake in Spanish energy firm Repsol’s renewables unit has hit an impasse over a potential 1 billion euro ($1.2 billion) investment, two sources familiar with the matter told Reuters.

Dubai's main share index dropped 1%, poised to extend the last session's losses with most sectors in negative territory.

Emirates NBD Bank and Emaar Properties both fell 1.4%, after the latter ended a three-day winning streak the previous day.

National Central Cooling weighed on the utilities sector, with its shares falling nearly 2.5% as the stock commenced trading ex-dividend.

In Abu Dhabi, the benchmark index edged lower by 0.8%, with all sectors in the red, hit by a nearly 2% decrease in ADNOC Drilling.

Elsewhere, Modon Holding on Tuesday announced the sale of its entire 17.45% indirect stake in Aldar Estates to Aldar Properties, which saw its shares decline 1.5%. Newly-listed Orascom Construction descended 0.4%, mirroring last day's losses as traders continued to lock in profits from recent strength.

Qatar's stock index rebounded 0.2%, on course to snap three consecutive sessions of decline, as investors bought up recently sold-off shares.

Industrials outperformed, led by more than 4.6% increase in Estithmar Holding. Qatar National Bank, the region's largest lender, advanced 1%.

(Reporting by Amna Mariyam in Bengaluru; Editing by Ros Russell)