Oil - rich gulf states saw their stock markets plunge on Monday on fears of a new outbreak of pneumonia, agence france-presse reported. Last week's outbreak also dealt a blow to global stock markets.

Reports say the crisis threatens to weaken the economies of the gulf states. These countries are already struggling with an economic downturn and are trying to wean themselves off decades of dependence on energy revenues.

Saudi Arabia, the region's biggest exchange and one of the world's top 10 stock markets, closed down 3.7 percent to an 18-month low.

Five other stock markets in the region also took a beating on March 1 as oil prices fell below $50 a barrel.

Leading the decline was Kuwait, where a 10 per cent drop in the composite index triggered an automatic shutdown of trading.

Dubai's financial markets fell 4.5 percent and its sister market, ABU dhabi, closed 3.6 percent lower, both hitting one-year lows, the report said.

Bahrain's stock market closed down 3.4 percent, while Oman's Muscat stock market closed down 1.2 percent. It was a bleak day for the GCC members.

Gulf stock markets fell as fears of a new outbreak of pneumonia spread across the region, said m. r. raghu, head of research at the Kuwait financial center, according to the report.

So far, at least 117 new cases of coronary pneumonia have been reported in the gulf states, the report said.