Abu Dhabi: Iran is the world's leading state sponsor of state terrorism, said US President George W. Bush during a speech in Abu Dhabi on Sunday, soon after his arrival in the UAE on an official visit.

Click on the links below to listen to President Bush's speech:
Bush speech - part 1 (mp3)
Bush speech - part 2 (mp3)

"Democracy is the only form of government that brings peace and stability and gives individuals the dignity they deserve," he said.

Bush praised the UAE as a model for inter-faith tolerance in the keynote address.

Abu Dhabi was the third stop of his tour of the Gulf. Bush said that Iran was threatening security around the world by backing "extremists" and urged its Gulf Arab allies to "confront this danger before it is too late."

Bush said that Iran was the world's number one sponsor of terrorism and accused it of undermining peace by supporting the Hezbollah guerrilla group in Lebanon, Palestinian Islamist group Hamas and Shiite militants in Iraq.

"Iran's actions threaten the security of nations everywhere. So the United States is strengthening our longstanding security commitments with our friends in the Gulf and rallying friends around the world to confront this danger before it is too late," he said in his keynote speech.

"Iran is today the world's leading state sponsor of terror. It sends hundreds of millions of dollars to extremists around the world while its own people face repression and economic hardship at home," he said.

Returning to familiar themes that have been at the core of Bush's approach during seven years in the White House, the president praised democratisation efforts in the Arab world and urged his allies to embrace open politics and open economies.

Bush has given particular attention to Iran during his Middle East tour for peace, which began on Wednesday in Israel where he warned that Iran posed "a threat to world peace".

In Kuwait on Saturday he called on Iran to stop supporting militants that attack coalition troops in Iraq.

Gulf allies have voiced concerns that a US attack on Iran could destabilise the region, and Washington has been careful in reassuring that it regards military action as a last resort.

- With input from agencies