Jeddah 3 Nov.2004(WAM)--The Arab world plunged intomourning last night with the death of its elder statesman Sheikh Zayedbin Sultan Al Nahyan, the president of the United Arab Emirates. Arabgovernments announced three days of mourning starting today to mark thepassing away of the UAE leader.

The announcement of his death cast a pall of gloom across the UAE, bothamong nationals and expatriates. Many shops which normally remain openthroughout the night, downed their shutters early, reported the Jeddah-basedArab News.

Crown Prince Abdullah yesterday telephoned Sheikh Khalifa bin Zayed, theRuler of Abu Dhabi and Sheikh Muhammad bin Zayed, Crown Prince of Abu Dhabi to extend his condolences on the demise of SheikhZayed.

Analysts said last night that Zayed?s death removes a key voice in Arabpolitics and a figure who had often acted as troubleshooter among Arableaders.

With oil prices at their highest levels in recent weeks, it was not clearwhat impact Zayed?s death might have on the markets. The United Arab Emiratesis the fourth largest producer of crude in the Gulf and is estimated tohave some seven percent of the world?s known reserves.

Zayed played a crucial role in fostering understanding between the Westand the Muslim world through a number of political and cultural initiatives.

Sheikh Zayed had been president of the UAE since its birth in 1971. SheikhZayed?s role was as a traditional figurehead for his oil-rich countrHe had ruled Abu Dhabi ? the richest and largest of the seven emiratesand the capital of the state ? since 1966.

The UAE was created in 1971, when six desert sheikhdoms ? Abu Dhabi, Ajman,Dubai, Fujairah, Sharjah and Umm Al-Quwain ? gained independence followingthe departure of British troops.

The seventh emirate, Ras Al-Khaimah, joined in 1972.

Under Sheikh Zayed?s rule with the massive income generated by its oilproduction, the country was transformed from a tribal backwater to a worldfinancial center.

He was genuinely loved and respected by his citizens, who credited himwith distributing the wealth fairly throughout the country.