DUBAI, Jan 17 (Reuters) - Weakness among petrochemical producers sent Saudi Arabia stocks lower on Tuesday while Qatar was buoyed by its banking sector.

Saudi Arabia's index edged down 0.2 percent in the first 25 minutes of trade after dropping 1.6 percent on Monday. Saudi Industrial Investment Group fell 3.2 percent.

Dallah Healthcare slipped 0.3 after the company reported a 4.8 percent drop in fourth-quarter net income, citing higher amortisation charges and higher marketing expenses.

Saudi Cement added 0.4 percent after reporting a quarterly net profit of 187 million riyals ($49.9 million), up from 176 million riyals a year ago but below the average forecast of five analysts of 199.2 million riyals.

Real estate developer Jabal Omar Development rose 0.4 percent after swinging to a net profit of 79.3 million. It cited higher sales of residential units and an increase in revenue from its hospitality segment.

Qatar's Islamic bank Masraf Al Rayan jumped 3.0 percent to 40.10 riyals after reporting an 8 percent drop in fourth-quarter net profit to 515.0 million riyals ($141.5 million), mid-way between EFG Hermes' forecast of 478.4 million riyals and QNB Financial Services at 549.7 million riyals.

The lender's board recommended a dividend for 2016 of 2 riyals per share, above the 1.75 riyals paid in 2015. It is in initial talks to merge with two other local lenders.

Two other major banks that have not yet reported earnings were higher, with Doha Bank adding 1.1 percent and Qatar Islamic Bank up 0.6 percent.

Dubai's index edged down 0.2 percent on profit- taking in mid-sized shares. Union Properties lost 1.8 percent and courier Aramex fell 1.7 percent.

Abu Dhabi's index edged up 0.2 percent as some large caps were bid up. National Bank of Abu Dhabi added 1.0 percent and telecommunications operator Etisalat was up 0.8 percent.

(Reporting by Celine Aswad; Editing by Andrew Torchia and John Stonestreet) ((celine.aswad@thomsonreuters.com; +971 4 4536886; Reuters Messaging: celine.aswad.thomsonreuters.com@reuters.net))