Nov. 3 (Bloomberg) -- Persian Gulf stocks fell as Shuaa Capital PSC delayed the conversion of a bond and on investor concern that the region will continue to face the fallout from the global credit crisis.

Shuaa, the United Arab Emirates' biggest investment bank, tumbled the most in almost a month. Sorouh Real Estate PJSC declined for the first time this week. Oman Telecommunications Co., the biggest phone operator in Oman, fell for the first time in five days after saying profit dropped.

The Dubai Financial Market General Index lost 1.5 percent to 2,909.8 at 1:04 p.m. local time. The Abu Dhabi Securities Exchange General Index fell 0.7 percent and Oman's Muscat Securities Market 30 Index dropped 0.7 percent. The Kuwait Stock Exchange Index declined 2.4 percent.

``Investors are waiting to see a clear sign that this crisis is behind us,'' Bassam Ramahi, brokerage manager at Emirates Securities in Abu Dhabi, said in a telephone interview. ``Retail investors in the region have a lot of liquidity, but they've adopted a wait-and-see approach. Government funds and insurance companies should take the lead.''

Business confidence in six Gulf Arab states, including the U.A.E., fell to its lowest since February 2007 in the third quarter as the global financial crisis deepened, a survey by HSBC Holdings Plc showed on Oct. 29.

Saudi Arabia's Gain

The U.A.E., the second-biggest Arab economy and holder of about 8 percent of the world's oil reserves, has pledged to inject about 120 billion dirhams ($33 billion) into the country's banks to meet a liquidity squeeze. Kuwait's Gulf Bank KSC is in talks with the central bank over its rescue after the emirate's second-largest lender by assets was hit by losses on currency derivatives.

In Qatar, DSM 20 index declined 1.3 percent and the Bahrain All Share Index dropped 0.8 percent. Saudi Arabia's Tadawul All Share Index rose 1.4 percent.

Shuaa lost 9.3 percent, the most since Oct. 7, to 2.45 dirhams. The investment bank and Dubai Banking Group agreed to extend the tenor of convertible bonds valued at 1.5 billion dirhams by one year to Oct. 31, 2009.

Sorouh, Abu Dhabi's second-biggest developer, declined 4 percent to 3.89 dirhams.

Oman Telecommunications dropped 2.2 percent to 1.713 rials after it posted a 5.8 percent decline in third-quarter profit to 32.1 million rials ($83 million) from 34.1 million rials in the year-earlier period.

Qatar Telecom QSC rose 1.9 percent to 146.7 riyals. The telecom company is sending executives to Jakarta on Nov. 6 to discuss the price of the company's acquisition of PT Indosat, after Indonesia's market regulator asked the Qatari company to revise the offer, Bisnis Indonesia reported.

To contact the reporter on this story: Haris Anwar in Dubai on Hanwar2@bloomberg.net

Last Updated: November 3, 2008 04:29 EST