The UAE has charged 41 men of various nationalities with setting up a "terrorist organisation" to destabilize the country, a media report said on Sunday.

Citing local daily Gulf News, Xinhua said the 41 people were charged with setting up and running a terrorist organisation named "Shabab Al-Manarah" (Arabic for the Minaret Youths) in the United Arab Emirates.

The UAE's attorney general Salem Saeed Kubaish said the suspects were also charged with intending to inflict damages to private and public properties to eventually take over authority to set up a so-called "Caliphate State".

The report did not reveal their nationalities.

If convicted, the suspects face capital punishment, life imprisonment and fines of up to 100 million dirham (about $27 million), according to local laws.

Kubaish said the suspects set up an organisational structure to recruit young Emiratis, instill extremist thoughts into them and train them for militant acts and manufacturing of explosives at certain camping sites.

The suspects also disseminated audio and video materials on the internet for propaganda, the report said.