Saudi shares decline on lower crude oil prices

Riyadh: Saudi Arabian shares headed for their lowest close in almost three months, led by petrochemical companies and banks, as falling oil prices and concern over Europe's debt crisis stoked bets that fuel demand could drop.

The Tadawul All Share Index dropped 1.2 per cent 7,008.62, set for the lowest close since February 21. The 152-member index is up 9.2 per cent this year.

"The Saudi market will tumble as a result of weaker crude prices and the deteriorating economic outlook in Europe," Asim Bukhtiar, head of research at Riyad Capital, said.