UAE markets ended mixed in thin trading and Qatar's bourse declined as an uncertain political climate in the Middle East spurred investors to tread cautiously.
Dubai's index slipped 0.8 per cent to finish at 1,589.02 points, trimming year-to-date gains to 17.4 per cent. A total of 46 million shares traded, about a third of the 50-day moving daily average.
Property-related stocks fell, with Emaar Properties and Arabtec declining 0.8 and 2.2 per cent respectively. Deyaar Development slipped 1.5 per cent. These had rallied on Sunday after Sheikh Mohammed bin Rashid, Vice President of the UAE and Ruler of Dubai, announced massive retail and tourism projects.
Abu Dhabi's banks helped the emirate's benchmark to climb 0.38 per cent to close at 2,646.51.
National Bank of Abu Dhabi rose 2.4 per cent and Abu Dhabi Commercial Bank gained 0.7 per cent.
"In the UAE, there's no fundamental reason for the markets to pull back, but there's caution based on the political risk in Egypt," said Amer Khan, a fund manager at Shuaa Asset Management.
"We're close to the end of the year and some of the names have rallied quite a bit. People will want to book these gains and stay on the sidelines."
Mr Khan said regional investors were also concerned about succession plans for Saudi Arabia after the king had back surgery.
Senior Saudi royals and government officials have visited King Abdullah in hospital, the state news agency SPA reported, a week after the monarch - believed to be in his late 80s - had surgery to tighten a ligament in his back.
In Qatar, the benchmark slipped 0.23 per cent to 8,429.01, easing from Sunday's one-week high.
Elsewhere, Kuwait's index rose 0.42 per cent to 5,903.24, its highest close since October 18.
Oman's measure ended near-flat at 5,543.98 points.