Saudi Arabian shares fell sharply on Tuesday as banks led the index lower, while markets in the United Arab Emirates extended losses on back of financial and real estate stocks.

In Saudi Arabia, the stock market index lost 1.2%, falling for a third consecutive day. Al Rajhi Bank 1120.SE dipped 1% and Riyad Bank was down 1.4%.

Saudi Ceramic dived 5.9%, despite swinging into a quarterly net profit from a loss a year earlier.

Among other stocks, Saudi Cement Company declined 5.2%. On Monday the company reported third-quarter net profit of 83 million riyals, up from 75.4 million riyals a year earlier but down about 10% from the second quarter.

Savola Group 2050.SE however soared 9.9%, its biggest one-day surge since March 2011.

The conglomerate reported third-quarter net profit of 221.8 million riyals against a net loss of 50.7 million riyals a year earlier on higher sales and margins, an increase in the share of profit from associates and lower currency exchange losses.

Separately Saudi Aramco aims to announce the start of its initial public offering on Nov. 3, Reuters reported, citing three people with direct knowledge of the matter.

The deal was delayed earlier this month to give advisers time to secure cornerstone investors. 

Dubai's main share index closed 1.4% down as all real estate stocks declined. Blue-chip developer Emaar Properties EMAR.DU plunged 5%, its biggest intraday fall since May, while Arabtec Holding slid 3.1%.

Al Mal Capital senior portfolio manager Vrajesh Bhandari said a "bad" set of third-quarter results from Emaar was a possibility. The stock had seen aggressive technically-driven selling after it breached the 4.40 dirham support level, he added.

"Seasonally, the UAE markets don’t do very well in the fourth quarter, regaining interest with fresh capital allocation in the new year going into the dividend season," he further added.

In Abu Dhabi, the index dropped 1.2%, with the country's largest lender First Abu Dhabi Bank FAB.AD shedding 2% and Abu Dhabi Commercial Bank retreating 0.3%.

On Sunday ADCB reported a 13% drop in third-quarter profit, in line with analysts' forecasts, the second set of results since it merged with Union National Bank and Al Hilal Bank.

Egypt's blue-chip index rose for a fourth day, gaining 1.2% with 26 of 30 stocks rising on the index.

The country's largest lender Commercial International Bank gained 1.4% and Sidi Kerir Petrochemicals surged 10%, its biggest since June 2005.

Exchange data showed Egyptian investors were net buyers of the stocks.

Qatar's index traded flat with Mesaieed Petrochemical  falling 2% after its nine-month net profit halved from the same period of the previous year.

(Reporting by Ateeq Shariff in Bengaluru; Editing by Jan Harvey) ((; +918067497129;))