The decision to establish the agency, with an initial capital of Dh375 million, follows an agreement signed with France in January to help the UAE develop a peaceful programme that will not include the process of enriching uranium, the most sensitive part of the project. Instead, the UAE will import the nuclear fuel from "a trusted foreign source", WAM said.

The move was approved at the Cabinet meeting on Sunday, chaired by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.

At the meeting, Shaikh Abdullah Bin Zayed Al Nahyan, Foreign Minister, outlined the UAE project and presented a memo on the possibility of developing a peaceful nuclear energy programme.

"The complete details of the proposed nuclear programme will soon be published in line with the UAE's keenness to deal with the international community transparently," Shaikh Abdullah was quoted as saying.

Studies conducted by official agencies on local supply and demand for electricity found that power generation through the use of nuclear energy represents a competitive option commercially and environmentally, he added.

The planned Nuclear Energy Authority, WAM reported, will have the "mandate to evaluate and develop a peaceful nuclear energy programme in line with the recommendations of the International Atomic Energy Agency (IAEA)".

Stressing the transparency of the programme, the cabinet endorsed an official statement outlining the country's intention to develop nuclear energy for peaceful purposes.

"By adopting clear and transparent policies regarding its intention to develop a peaceful nuclear energy programme and its complete commitment to the UN nuclear non-proliferation treaty and other related conventions, the UAE wants to set a new model to enable countries that do not possess nuclear programmes to utilise and benefit from the nuclear energy with full support from the international community," the statement said.

Key points: Policy spelt out

Excerpts from the UAE's statement on the decision to look into a potential nuclear energy programme for peaceful uses:

• The UAE is committed to complete transparency in the operation of nuclear plants.

Non-proliferation:

• It is committed to achieving the highest standards of nuclear non-proliferation.
• The UAE is committed to achieving the highest safetyand security standards.

IAEA compliance:

• The UAE is keen to work directly with the International Atomic Energy Agency (IAEA) and is committed to its standards on the assessment of the possible development of a peaceful nuclear energy programme.

Regional help:

• The UAE is looking forward to developing a local nuclear energy programme for peaceful purposes with the help of friendly countries and international organisations that have expertise in this field.

Sustainable goal:

• The UAE is committed to adopting the optimal way of dealing with any peaceful nuclear programme to further achieve a long-term sustaining programme.