Dec 26 Reuters Most stock markets in the Gulf fell in early trade on Monday, with modest trading volumes in absence of many foreign investors for the Christmas holidays.

Saudi Arabia39;s benchmark inex eased 0.1, hit by a 0.6 fall in Retal Urban Development Co and a 1.1 decline in the kingdom39;s biggest lender Saudi National Bank.

However, Yanbu National Petrochemicals Company gained 0.8 after it proposed halfyearly dividend of 1.25 riyal.

In Abu Dhabi, the index dropped 0.5, on course to extend losses for a fourth session, hit by a 1.6 slide in the United Arab Emirates39; largest lender First Abu Dhabi Bank.

Last week, the MSCI index for EM equities fell 1, its second week of declines as global risktaking waned after betterthanexpected U.S. economic data on Thursday fanned fears of aggressive monetary policy tightening in the world39;s largest economy.

Most Gulf Cooperation Council countries, including Saudi Arabia, the UAE and Qatar, have their currencies pegged to the U.S. dollar and follow the Fed39;s policy moves closely, directly exposing the region to monetary tightening in the world39;s largest economy.

The benchmark index in Qatar among the world39;s top exporters of liquefied natural gas dropped 0.9, as most of the stocks on the index were in negative territory including Qatar Islamic Bank, which was down 1.5.

Dubai39;s main share index, however, rose 0.5, helped by a 1.3 rise in shariacompliant lender Dubai Islamic Bank.

Reporting by Ateeq Shariff in…