The United States and the United Arab Emirates signed an agreement on Monday to cooperate on a peaceful nuclear energy programme, with the UAE promising to be a "responsible" partner.
US Secretary of State Condoleezza Rice said she welcomed the arrangement and signed a memorandum of understanding with UAE Foreign Minister Sheikh Abdullah bin Zayed al-Nahayan promising future co-operation.
"We are very supportive of what you are trying to do. As you know we think access to nuclear energy is very important. The UAE is a responsible partner and a responsible power," Rice said at the signing ceremony in Bahrain.
The United States is at loggerheads with Iran, just across the Gulf from the UAE, over its nuclear programme and fears that it is trying to build an atomic bomb. Iran insists its nuclear programme is for peaceful power generation. The UAE has said it plans to establish a $100 million agency to look into developing nuclear energy to satisfy rising electricity demand as its economy booms on record oil income.