The Dubai stock market fell sharply early on Tuesday, dragged down by property stocks, while all major Middle Eastern bourses dropped in line with a plunge of Wall Street stocks, which slid to its lowest levels in more than a year.

In Dubai, the index dropped 1.0 percent with the emirate's largest listed developer, Emaar Properties, sliding 3.3 percent and Dubai Investments, shedding 2.3 percent.

Dubai's weak real estate market has been a big drag for property shares this year with Emaar Properties down more than a third year-to-date. Dubai inflation data released on Monday showed housing and utility costs falling 4.7 percent year-on-year, their biggest decline in years.

The Saudi Arabian stock index was down 0.3 percent after an hour with top petrochemical firm Saudi Basic Industries slipping 0.5 percent and the largest lender, National Commercial Bank, dropping 0.7 percent.

Brent crude oil prices dropped more than $1 on Tuesday, falling for a third straight session, as reports of inventory builds and forecasts of record shale output in the United States stoked worries about oversupply.

Telecommunications firm Etihad Etisalat (Mobily) was down 1.2 percent at 17.00 riyals, continuing to drop after disclosing a new system of royalty payments to the government on Sunday.

But Saudi Company for Hardware jumped 6.6 percent after shareholders approved a capital increase to 360 million riyals ($96 million) through a bonus share issue.

Bank Albilad gained 4.0 percent after its board recommended an increase to the bank's capital to 7.50 billion riyals from 6 billion riyals through bonus shares.

The Abu Dhabi index slipped 0.4 percent as Abu Dhabi National Energy Co slumped 10 percent, falling to its lowest level since April 2018.

But Dana Gas added 1.1 percent after saying it had received $20 million from the Egyptian government. The firm's total receipts from Egypt reached $152 million for the year.

The Qatar stock exchange was closed for a public holiday.

(Reporting by Shakeel Ahmad and Ateeq Shariff in Bengaluru; Editing by Andrew Torchia) ((shakeel.ahmad.thomsonreuters.com@reuters.net;))