Abu Dhabi: French president Nicolas Sarkozy said on Sunday that Israel must stop its colony-building in the Occupied Territories "as it hinders peace" in the region.

"There is a reality on the ground that no one would think seriously about peace in the Middle East without giving the Palestinians a state... It is their legitimate right," he added, stressing that "the best guarantee for security of Israel is setting up of a Palestinian independent, democratic, modern and viable state."

France and the UAE will today embark on a new era of bilateral relations with the opening of a French military base, in Abu Dhabi, that signals the beginning of collective efforts to preserve regional stability, Sarkozy said on Sunday.

In an interview with WAM, on the eve of his visit to the UAE on Monday, Sarkozy said he will hold talks with President His Highness Shaikh Khalifa Bin Zayed Al Nahyan on bilateral and regional issues including the Middle East peace process and Iran.

''My visit today falls in the new framework dynamics as I will open a new military base between French inter-armies in Abu Dhabi. This base is a turning point in the relations between the two countries. Through the permanent military presence, France firmly pledges to back its Emirati friends. France, through this base - the first in the Middle East, is ready to shoulder its responsibilities to ensure the stability in the region. This region is strategic for world stability," Sarkozy said.

The French president also had a message for Iran. "The Iranian leadership have to choose now; either they return to the international community fold or face more isolation," he said.

"The Iranian crisis is one of the biggest issues threatening world security. My position was clear and I still persist that Iran's possession of nuclear weapons is not acceptable," he added. "The option of the new US administration to join us in serious dialogue is good news, as it will boost our efforts to convince the Iranian authorities that it is in their best interest and interest of their people to respond to the demands of the international community," he said.

Sarkozy's visit will also coincide with the beginning of construction of the Louvre Abu Dhabi Museum at Saadiyat Island. He described the UAE as France's top Middle East partner.

"The UAE today receives half of the French investments in the Gulf," he said. The volume of French exports to the UAE surged three times over the last ten years.