The state company behind the United Arab Emirates' first nuclear power plant says it has received a green light for the project from an environmental regulator in the country.

The Emirates Nuclear Energy Corporation called the approval Sunday from the Environment Agency in Abu Dhabi an important step in a multi-year licensing process for the Gulf federation's first two reactors, the AP reports.

ENEC still needs to secure approval from the UAE's federal nuclear regulator before it can move ahead with construction.

The company plans to build the reactors at a coastal site in the country's far western region, near the border with Saudi Arabia. A South Korean consortium led by Korea Electric Power Corporation won the $20 billion contract for the project.

ENEC hopes to have the first reactor running by 2017.