In one of the last acts of George W. Bush’s presidency, the United States has signed a “123 agreement” for nuclear co-operation with the United Arab Emirates. That will make the UAE the first Arab state to enjoy full rights to US nuclear energy technology, according to the Financial Times.

Given that the UAE is sitting atop the world’s sixth largest oil reserves, it may seem surprising that they would seek to build costly nuclear reactors. But as we’ve written, it is more cost-effective for many Gulf States to export their oil and use the profits for alternative sources of energy.

123, for those who don’t know, refers to the section of the United States Atomic Energy Act that authorizes nuclear cooperation with signers of the nuclear non-proliferation treaty. The UAE has signed the treaty, and moreover it has relinquished rights to fuel cycle technologies such as uranium enrichment, which could also be used to produce nuclear weapons.

It’s pretty clear from the remarks made by Secretary of State Condoleezza Rice at Friday’s signing ceremony that the US hopes the UAE can serve as an example to other Gulf Staes.

What will the UAE use all that power for? Probably to run their uphill water slides.