UAE - Nov 2 - Arab World Mourns President Shaikh Zayed.

The Arab world plunges into mourning with the death of its elder statesman, Pres Shaikh Zayed ibn Sultan Al-Nahayan. Arab governments announced three days of mourning to mark the passing away of the UAE leader. The 86-year-old president, who had been in declining health for years, died last night in Abu Dhabi. He had had a kidney transplant in 2000 and was recently in London for hospital treatment. But no cause of death was given last night. The announcement of his death cast a pall of gloom across the UAE, both among nationals and expatriates. Many shops which normally remain open throughout the night, downed their shutters early. Shaikh Zayed's body will be laid to rest this day. The ruler of the emirate of Dubai, Shaikh Maktoum ibn Rashid, will act as president of the seven-emirate group until a new overall ruler is chosen. Crown Prince Abdullah telephoned Shaikh Khalifa ibn Zayed, the crown prince of Abu Dhabi and Shaikh Mohammad ibn Zayed, deputy crown prince of Abu Dhabi to extend his condolences on the demise of Shaikh Zayed. Analysts said last night that Zayed's death removes a key voice in Arab politics and a figure who had often acted as troubleshooter among Arab leaders. With oil prices at their highest levels in recent weeks, it was not clear what impact Zayed's death might have on the markets. The UAE is the fourth largest producer of crude in the Gulf and is estimated to have some seven percent of the world's known reserves. Zayed played a crucial role in fostering understanding between the West and the Muslim world through a number of political and cultural initiatives. Shaikh Zayed had been president of the UAE since its birth in 1971. Shaikh Zayed's role was as a traditional figurehead for his oil-rich country. He had not attended Arab summits for several years. He had ruled Abu Dhabi - the richest and largest of the seven emirates and the capital of the state - since 1966. He named his eldest son, Shaikh Khalifa ibn Zayed, as crown prince back in 1969. The UAE was created in 1971, when six desert Shaikhdoms - Abu Dhabi, Ajman, Dubai, Fujairah, Sharjah and Umm Al-Quwain - gained independence following the departure of British troops. The seventh emirate, Ras Al-Khaimah, joined in 1972. Under Shaikh Zayed's rule with the massive income generated by its oil production, the country was transformed from a tribal backwater to a world financial center. He was genuinely loved and respected by his citizens, who credited him with distributing the wealth fairly throughout the country.