DUBAI- Banks with exposure to Turkey contributed to dragging Gulf markets lower on Monday as investors remain concerned about their links to Turkey's currency crisis.

Dubai's largest bank Emirates NBD, which in May agreed to buy Turkey's Denizbank in a $3.2 billion deal, tumbled 3.3 percent.

The bank said on Sunday it was "closely monitoring" the situation in Turkey but declined to comment on whether it was renegotiating the terms of the deal. Brokerage firm Arqaam Capital said in a research note that the Turkish lira's plunge provided Emirates NBD with "an opportunity to reduce the acquisition price by as much as 27 percent." 

The bank's fall dragged the main Dubai index down by 1.1 percent.

The lira pulled back from an overnight record low on Monday amid a diplomatic and economic spat between the United States and Turkey. Turkey's central bank pledged to provide liquidity and cut lira and foreign currency reserve requirements for Turkish banks. urn:newsml:reuters.com:*:nL5N1V407X

National Commercial Bank (NCB), Saudi Arabia's largest bank by assets, fell by 2.8 percent. NCB's exposure to Turkey is estimated by Arqaam Capital as 8 percent of its assets and 12 percent of its loans.

The main Saudi index fell by 1.3 percent.

The Middle East and North Africa's largest bank, Qatar National Bank, slipped by 0.5 percent. Around 15 percent of the bank's assets and 14 percent of its loans relate to Turkey, according to Arqaam Capital.

In contrast, Qatar's Commercial Bank edged up 1.3 percent. Commercial Bank is 100 percent owner of Turkey's Alternatifbank.

The Qatar index was flat, edging up 0.02 percent.

(Reporting by Tom Arnold; Editing by Catherine Evans) ((tom.arnold@thomsonreuters.com))