Abu Dhabi's stock market fell in early trade on Monday, leading declines in the Gulf on investor concern about the prospect of a global recession.

MSCI's broadest index of Asia-Pacific shares outside Japan was down 1.4% at a two-year low and heading for a monthly loss of 11%, the largest since March 2020.

In Abu Dhabi, the index shed 1.7%, dragged down by a 2% drop for First Abu Dhabi Bank, the United Arab Emirates' biggest lender.

Crude prices, a key catalyst for the Gulf's financial markets, fell for a second day on a stronger dollar and potential lower fuel demand in the face of an expected global recession sparked by rising interest rates.

Dubai's main share index dropped 1.5%, with most stocks in negative territory, including blue-chip property developer Emaar Properties.

Separately, Abu Dhabi-based hospital operator Burjeel Holdings plans to sell an 11% stake in an initial public offering that will list its shares on the emirate's exchange, the company said in a statement on Monday.

Saudi Arabia's benchmark index fell 0.4%, with Al Rajhi Bank down 0.9%.

The Qatari index eased 0.3% as Qatar National Bank , the Gulf's biggest lender, fell by 1.7%.

(Reporting by Ateeq Shariff in Bengaluru Editing by David Goodman)