ABU DHABI, Nov 2: The president of the United Arab Emirates, Sheikh Zayed bin Sultan Al Nahayan, died on Tuesday and officials expected a smooth transfer of power in the oil-rich Gulf Arab country.

Sheikh Zayed was in his early 90s and had suffered from poor health for a long time.

Under the constitution, Vice-President and Prime Minister Sheikh Maktoum bin Rashid Al Maktoum, Ruler of Dubai, will act as president until the federal council which groups rulers of the seven emirates meets within 30 days to elect a president.

Abu Dhabi Crown Prince Sheikh Khalifa bin Zayed Al Nahayan, the eldest son of Sheikh Zayed, will automatically take over as ruler of Abu Dhabi, the country's capital.

Official sources expect the council to elect Sheikh Khalifa as the next president with power remaining in Abu Dhabi where nearly all the oil wealth is concentrated.

"The royal court announces to Arab and Islamic countries and the rest of the world the death of the leader of the nation Sheikh Zayed ... on Tuesday evening," said an announcement read out on Abu Dhabi television before it switched to readings verses from the Holy Quran.

UAE officials were not immediately available to give details on the death or funeral arrangements, but traditionally it takes place as soon as possible.

SHREWD LEADER: Abu Dhabi is the largest emirate in the UAE and Sheikh Zayed spread its huge oil income to build a modern infrastructure.

The Gulf country of 4.04 million people has one of the world's highest per capita incomes and is home to millions of expatriates who make up over 85 per cent of the population.

The UAE holds 98 billion barrels of oil reserves, close to nine per cent of the world's total.

Sheikh Zayed, who has led the UAE since its formation in 1971, received a kidney transplant at a US clinic in 2000.

Last year he paved the way for a smooth transfer of power after his death, appointing his son Sheikh Mohammed as deputy crown prince of Abu Dhabi which puts him second in line to rule Abu Dhabi after the succession of his brother Sheikh Khalifa.

Born in 1918 in a mud and coral fort in Abu Dhabi, Sheikh Zayed proved an energetic and shrewd member of its ruling family and took power in 1966 when his brother Shakhbout was deposed.

When British rule over what were known as the Trucial States ended in December 1971, Sheikh Zayed set aside old rivalries with Dubai and five other emirates to create the UAE.

The OPEC producer on Monday reshuffled the cabinet and made two of Sheikh Zayed's sons ministers in a move aimed to streamline the running of the country. It also appointed a new oil minister and said would leave oil and OPEC policy unchanged.

The UAE is pumping oil at a rate of just under 2.5 million barrels per day (bpd) and is one of only several OPEC members with the ability to expand its production capacity.

Sheikh Zayed's traditional generosity and diplomacy won him a prominent place in the Arab world. For the most part, he has tried to avoid confrontation in foreign policy.

The UAE has also cooperated in the US war on terror after the Sept 11, 2001 attacks on the United States, blamed on Osama bin Laden's Al Qaeda network. The UAE arrested Al Qaeda's alleged chief for the Gulf in 2003 and handed him to Washington.-Reuters