Mideast markets suffer sharp drop

(CNN) -- The Saudi Arabian Stock Exchange dipped slightly Sunday, a day after King Abdullah announced he would invest billions of Saudi riyals into the market.

The Tadawul All Share Index finished down 1.7 percent Sunday, while other Mideastern stock indexes fell sharply.

In Qatar, the DSM 20 Index tumbled 8.9 percent. Egypt's Case 30 Index fell 6.8 percent. Dubai's Financial Market General Index lost 4.7 percent. Bahrain All Share Index dropped 3.7 percent, and the Kuwait Stock Exchange's benchmark share index fell 3.5 percent.

King Abdullah announced Saturday he would deposit 10 billion riyals ($2.67 billion) into the Saudi Bank of Credit and Saving to help the beleaguered economy.

The precipitous drop in stock values is likely related to the tumbling U.S., European and Asian markets, as well as the falling price of oil, an analyst said.

Financial officials from the Gulf Cooperation Council states met recently in the Saudi capital of Riyadh to discuss the international economic crisis.

GCC officials released a statement Saturday saying they had taken precautionary measures to stem the effects of the world financial crisis and were ready to deal with further developments, according to the state-run Saudi Press Agency.

The group also announced it would sign a free-trade agreement with the European Union by year's end, the agency reported.

The GCC is comprised of Saudi Arabia, Kuwait, Oman, Bahrain, Qatar and United Arab Emirates.

All About Saudi Arabia • King Abdullah • Stock Performance