DUBAI - Petrochemical shares dragged down Saudi Arabia's stock market in early trade on Wednesday while Dubai real estate developers traded actively after they reported third-quarter earnings.

The Saudi index fell 0.6 percent in the first half-hour as Saudi Basic Industries sank 1.8 percent and Yanbu Petrochemical dropped 1.4 percent.

Insurer Malath, which had surged its 10 percent daily limit on Tuesday after trading in its rights issue ended, jumped a further 10 percent.

In Dubai, the index was flat as DAMAC Propertiesfell 2.0 percent after it posted a 20 percent year-on-year drop in quarterly profit. Another property firm, Deyaar, was the most heavily traded stock and rose 0.6 percent after it said profit dropped 41 percent but revenue surged 55 percent.

Qatar's index lost 0.3 percent as real estate firms declined, with Ezdan Holding slipping 1.7 percent and United Development falling 2.1 percent. Sanctions imposed on Qatar by other Arab states have accelerated a downturn in the Qatari property market.

(Reporting by Andrew Torchia; Editing by Janet Lawrence) ((andrew.torchia@thomsonreuters.com)(+9715 6681 7277)(Reuters Messaging: andrew.torchia.thomsonreuters.com@reuters.net))