TEHRAN -- Iranian President Mohammad Khatami Sunday held phone talks with Emirati President Sheikh Zayed bin Sultan al-Nahyan, in which the two heads of state stressed expansion of ties in order to maintain peace and achieve stability and progress in the region.

Khatami wished health for the United Arab Emirates' leader as well as success and progress for the UAE people.

Sheikh Zayed described the Islamic Republic's standing among the Islamic ummah as "prominent", IRNA reported.

Ties between Iran and UAE have remarkably improved over recent years against a backdrop of misunderstanding over the three Iranian islands in the Persian Gulf.

In June 2001, UAE Minister of State for Foreign Affairs Sheikh Hamad bin Zayed al-Nahyan visited Tehran, which was answered by then head of the Iranian presidential office, Mohammad-Ali Abtahi. Three sons of the UAE president have also visited the Islamic Republic.

Abu Dhabi sent its Foreign Ministry representative, Sheikh Saeed bin Saed al-Suwaidi, to the 30th meeting of the Organization of the Islamic Conference (OIC) held in Tehran through May 28-30 this year.

Sheikh Saeed stressed that relations between Tehran and Abu Dhabi were based on coexistence and common interests.