DUBAI (REUTERS) - The United Arab Emirates (UAE) announced on Monday (Jan 4) it was downgrading diplomatic ties with Iran and limiting the number of Iranian diplomats in the country, state news agency WAM reported.

Close allies Saudi Arabia and Bahrain cut ties with regional rival Iran after Iranian protesters attacked its mission there, angered by the Sunni Saudi Arabia's decision to execute a leading Shi'ite cleric. Iran is the main Shi'ite power.

"The UAE has decided to reduce the level of diplomatic representation with the Islamic Republic of Iran to the level of a charge d'affaires and to reduce the number of Iranian diplomats in the country," WAM said.