UPDATE 1-France eyes UAE base, big military, nuclear deals

(Adds EDF joining French nuclear consortium, paragraph 8)

ABU DHABI, May 25 (Reuters) - France prepared on Monday to open its first military base in the Gulf Arab region as it eyed multi-billion-dollar deals to supply the United Arab Emirates with nuclear power plants and advanced military aircraft.

French officials said the naval base in Abu Dhabi, capital of the UAE, the world's third-largest petroleum exporter, would deepen ties to the Gulf Arab state and fortify efforts to battle piracy and defend trade.

"We look at this cooperation as an important pillar of our foreign policy because it helps the stability in the Gulf region," UAE President Sheikh Khalifa bin Zayed al-Nahayan said in comments read at a maritime security conference.

President Nicolas Sarkozy will open the base on Tuesday.

The UAE, the world's third-largest oil exporter, plans to build a number of nuclear reactors to meet an expected need for an extra 40,000 megawatts of electricity by 2017.

U.S. nuclear reactor builders GE (GE.N) and Westinghouse Electric Co, a subsidiary of Toshiba Corp (6502.T), stand to get a big share of the expected $40 billion market if the U.S. Congress approves the deal.

French firms plan to compete for the business. France's Total (TOTF.PA), Suez (LYOE.PA), and state nuclear reactor maker Areva (CEPFi.PA) said last year they planned to develop two third-generation nuclear reactors in the UAE.

A source close to Sarkozy, who arrived in Abu Dhabi on Monday night, told reporters that state-controlled power firm EDF (EDF.PA) would be joining the French consortium.