Egyptian shares fell sharply on Sunday after the country's central bank kept rates unchanged, while Saudi Arabian index ended higher as the Kingdom announced discovery of four new oil and gas fields.

The Central Bank of Egypt (CBE) kept its main interest rates steady on Thursday, citing rising inflation in recent months and slowing economic growth due to the coronavirus pandemic.

The bank held the overnight lending rate at 9.25% and the overnight deposit rate 8.25%, the lowest since July 2014.

Egypt's blue-chip index fell 0.9% after consecutive three days of gains as most of the stocks ended in the red. The country's largest lender Commercial International Bank Egypt and the tobacco firm Eastern Company both declined 1.3%.

Among a few gainers, Cleopatra Hospital increased 2.4% after saying it would acquire Alameda Healthcare Group's Hospitals In Egypt.

Saudi Arabia's index ended 0.4% higher. Saudi Basic Industries was up 0.8% and Saudi Kayan Petrochemical surged 3.6%.

State-owned Saudi Aramco edged up 0.1%. The oil producer discovered oil in the Al-Ajramiyah well, northwest of the city of Rafhaa, with tests showing a rate of 3,850 barrels per day (bpd). 

With Sunday's gain, the Saudi index is up 4.2% in year-to-date as the best performer among its Gulf peers this year.

Dubai's index lost 0.5% to end a three-session winning streak. Emirates NBD and Dubai Islamic Bank both fell 0.9%, while Damac Properties declined 3.5%.

Dubai, the business and financial hub of the United Arab Emirates (UAE), has approved a 57.1 billion dirham ($15.55 billion) budget for 2021, 14% below the 2020 budget plan.

In Abu Dhabi, the index was down 0.6% with First Abu Dhabi Bank and Emirates Telecommunications Group losing 0.9% and 0.5%, respectively.

The Qatari index closed 0.3% higher, extending gains from the previous session. The telecom company Ooreddo rose 2.8% and the Islamic lender Masraf Al Rayan gained 0.9%.

(Reporting by Maqsood Alam in Bengaluru, editing by Louise Heavens) ((Maqsood.Alam@thomsonreuters.com;))