* Saudi shares closes at pre-economic reform announcement levels

* Petrochemical shares main drag as oil falls below $50

* Dubai snaps five days of gains as investors book profits

* Abu Dhabi down with volume hitting seven-week high

* Qatar drops to 14 week low

By Celine Aswad

DUBAI, May 30 (Reuters) - Shares in the Gulf fell in a broad sell-off on Monday as investors booked profits after a dip in oil prices. Egypt was lower as foreign funds exited positions. Saudi Arabia's index lost 1.1 percent, its lowest close since April 11, before the kingdom announced plans to diversify away from hydrocarbon dollars. Eighty-eight percent of the shares closed down.

Petrochemical shares were the main drag with Saudi Basic Industries , the largest listed producer, dropping 1.8 percent, taking its losses to 3.0 percent since Brent prices fell back below $50 a barrel.

Banking shares failed to hold onto earlier gains, with the sub-index edging down 0.4 percent. Banque Saudi Fransi fell 2.5 percent, its sixth session of losses out of the last seven.

Elsewhere, Dubai's index fell 1.6 percent, ending five session of gains as investors lacked impetus to build further positions.

Emaar Properties lost 2.2 percent and Dubai Islamic Bank , which was a top gainer on Sunday, slumped 4.1 percent.

Abu Dhabi's index erased earlier gains and dropped 0.9 percent in the heaviest volumes in seven weeks. Abu Dhabi Islamic Bank and First Gulf Bank , whose combined market value is a fifth of the total market, fell 1.1 and 2.0 percent respectively.

Qatar's index dropped 1.3 percent to close at a 3 1/2-month low. Oil-linked shares Gulf International Services and Qatar Gas Transport fell 3.4 and 1.9 percent.

In Egypt, the main index edged down 0.4 percent, as foreigners exited positions, stock exchange data showed. Last week, international investors were net buyers of Egyptian shares.

Real-estate development stocks were the main drag, with Amer Group Holding and Porto Group Holding slumping 5.9 and 3.5 percent.

But investment firm Pioneers Holding added 0.8 percent after the company reported a 46.9 percent rise in first-quarter profit of 354.5 million Egyptian pounds ($39.92 million).



MONDAY'S HIGHLIGHTS



SAUDI ARABIA

* The index fell 1.1 percent to 6,360 points.



DUBAI

* The index lost 1.6 percent to 3,306 points.



ABU DHABI

* The index dropped 0.9 percent to 4,260 points.



QATAR

* The index declined 1.3 percent to 9,552 points.



EGYPT

* The index edged down 0.4 percent to 7,453 points.



KUWAIT

* The index slid 0.3 percent to 5,379 points.



OMAN

* The index fell 0.9 percent to 5,839 points.



BAHRAIN

* The index added 0.2 percent to 1,094 points.

($1 = 8.8799 Egyptian pounds)

(Editing by Larry King) ((celine.aswad@thomsonreuters.com;+971 562 247 653 Reuters Messaging: celine.aswad.thomsonreuters.com@reuters.net))