KUWAIT CITY (AFP) ― Share prices in energy-rich Gulf Arab states fell sharply at the start of the week Sunday, dragged down after global oil prices plunged to new lows.

The decline took place on almost all of the region’s seven exchanges, with the Dubai and Qatari markets leading the way as investors dumped stocks soon after trading kicked off.

Dubai’s benchmark DFM Index slumped 7.6 percent to 3,321.30 points, ending at its lowest level so far in 2014.

The DFM had climbed as much as 60 percent this year, but all of those gains have now been wiped out, with the index 1.5 percent lower than 2013’s finish.

The bourse was pulled down by market leader Emaar Properties, which shed eight percent, and construction giant Arabtec, which lost 9.7 percent.

“The sharp decline in oil prices has caused a panic sell-off in most Gulf markets though it was an exaggerated reaction,” said Jassem al-Saadun, head of Kuwait’s Al-Shall Economic Consultants.

“The drop in oil prices is a major crisis for the Gulf ... Moreover, the prices of assets have been dropping, scaring investors who started selling indiscriminately,” he told AFP.