Sharmila, who had six birdies and three bogeys, is now nine-under for the tournament, and five shots behind the leader, the 17-year-old Thai amateur Ariya Jutanugarn (69).
India's other player, Smriti Mehra carded 73 after rounds of 74 and 72, is three-over and lying tied 91st. Sharmila opened with a bogey on third, but quickly made up on the next with a birdie. Back-to-back birdies on eighth and ninth ensured she turned in under-par at 34 and then she birdied 12th, 14th and 18th and gave back bogeys on 13th and 17th for a 69
Her earlier two rounds were 68 and 70.
"It was a solid round and I am happy with it. There is still a little more to go, so I want to stay patient and keep it consistent," said Sharmila.
Interestingly, the top three in the LET Qualifiers right now are amateurs.
While Ariya Jutanugarn moved to the top of the leader board by equalling the Amelkis course record with flawless eight under par 64 for 14-under 202, the second place was held by English amateur Emily Taylor (68) at 13-under 203.
Namibian amateur Bonita Bredenhann also equalled the Amelkis Course record with her 64 to lie on 11-under in third place, alongside the Spanish second round leader Virginia Espejo (71).
The 141 woman field is spilt over the Al Maaden and Amelkis Resorts over the first four days, playing two rounds on each of the courses.
After 72 holes, a cut at top-60 and ties precede the fifth and final round on the Al Maaden Golf Resort to decide the top 30 full cards plus ties on offer for the 2013 Ladies European Tour.
The projected cut mark to 60 plus ties moved up to oneunder-par on Saturday, while those on four under par or better were within the top 30 plus ties.
On a day of low scoring in the warm and sunny conditions there were also two hole-in-ones -- one on each of the courses.
Mallory Fraiche of the United States made hole in one at the 15th at Al Maaden and Sweden's Viva Schlasberg aced the 17th at Amelkis.