Emaar fell 7.1 per cent to its lowest close since May 20. The developer cited a lack of progress in what was slated to be $20 billion worth of projects for closing its Algeria office.
All other active stocks also declined, with Deyaar losing 5.1 per cent and Union Properties sliding 5.3 per cent. The index dropped 3.6 per cent to 1,756 points.
"Dubai is the second most traded market in the region and has a broader spectrum of investors than of the others in the Gulf and so when it goes down, the decline tends to be more aggressive," says Chamel Sahmy, Beltone Financial regional senior sales trader.
Dubai's next support level is at 1,720 points, he added.
Meanwhile, Abu Dhabi's benchmark finished lower for the second session in three, matching losses across the Gulf Arab region, as falling oil prices and weak global markets soured sentiment.
The index dropped 1.3 per cent to 2,637 points. Dana Gas and Abu Dhabi National Energy Co (Taqa) lost 6 and 3.3 per cent respectively, while developers Sorouh Real Estate and Aldar Properties each dropped more than 5 per cent.
Trading volumes slumped to a seven-week low.
"Global markets are closed today and so international investors are not really in the market," says Osama Rayyan, chief dealer at Dlala Brokerage Investment Holding.