* Entire real estate sector slides in Dubai
* Emaar hits its lowest in 3 months
* All Saudi Arabian banks decline
* 26 of 30 stocks drop in Egypt
Oct 2 (Reuters) - Middle East stocks fell on Wednesday, mirroring a decline in global shares, with Dubai particularly hard hit as property companies declined sharply. Global equity markets dropped after data showed the U.S. manufacturing sector contracted in September to its weakest level in more than a decade as business conditions deteriorated further amid trade tensions between China and the United States.
Manufacturing activity in the euro zone also shrank at its steepest rate in almost seven years last month, according to a survey on Tuesday that suggested there would not be a turnaround any time soon. In Dubai, the index closed 1.3% lower, extending losses for a second session with all its real estate stocks tumbling. Blue-chip developer Emaar Properties plunged 4.8% to its lowest level since June 27, while its unit Emaar Malls was down 1.6%. A Reuters poll in September showed that Dubai property prices have slumped 25%-35% since mid-2014 and that analysts expect a further downtrend this year and next amid a slowing economy and an oversupply of housing units. Saudi Arabia's share index dropped 0.9% with all banks in the index slipping, including Al Rajhi Bank which fell 1.1%. Saudi Telecom dropped 2.4%. Saudi Arabia's economy slowed sharply in the second quarter amid oil output cuts by the world's largest crude exporter, government data showed on Monday, raising fears of an economic contraction this year. On Monday, Fitch downgraded Saudi Arabia's credit rating to A from A+, citing rising geopolitical and military tensions in the Gulf following an attack on Saudi oil facilities and a deterioration of the kingdom's fiscal position. The Saudi finance ministry said in a statement that the decision by Fitch was "swift" and did not reflect Riyadh's actions to maintain global oil supplies. It asked the rating agency to reconsider its downgrade. Egypt' blue-chip index slid 0.8% with 26 of the 30 stocks declining. Eastern Company shed 2.7%, while El Sewedy Electric tumbled 4.4%. Egyptians were net sellers of stocks, bourse data showed. In Qatar, the index retreated 0.7% with market heavyweight Industries Qatar losing 1.4% and Mesaieed petrochemical dropping 2.4%. Abu Dhabi's index lost 0.5%, extending losses for a third straight day. Emirates Telecommunications Group declined 1.3% and Abu Dhabi Commercial Bank was down 1.8%.
SAUDI ARABIA The index declined 0.9% to 7,984 pointsABU DHABI The index lost 0.5% to 5,031 pointsDUBAI The index dropped 1.3% to 2,744 pointsQATAR The index slid 0.7% to 10,360 pointsEGYPT The index down 0.8% to 14,381 pointsBAHRAIN The index fell 0.1% to 1,514 pointsOMAN The index slipped 0.3% to 4,025 pointsKUWAIT The index was down 0.7% at 6,120 points
(Reporting by Ateeq Shariff and Shamsuddin Mohd in Bengaluru; Editing by Susan Fenton)