NAIROBI, Kenya -- In a match of record-breaking proportions, Bermuda suffered a demoralising one-wicket defeat at Nairobi Cricket Club yesterday.

Despite a maiden international century from Dexter Smith (110) and stirring knock from captain Albert Steede (76) and Clay Smith (71), Bermuda were not able to contain the batting-laden United Arab Emirates who won with two balls to spare.

UAE, who were due to face only 49 overs because of their own slow over rate, cost a score when a wide was signalled with Terry Burgess bowling to number 11 bat Suhail Butt.

Burgess began the final over with UAE needing two runs to win, and succeeded in keeping Butt and Arshad Laiq in check until a ball adjudged pitched fractionally wide of leg stump settled the most pulsating match of the tournament.

It certainly was one for the record books with UAE scoring the most runs batting second while the aggregate total of 659 is also highest.

Captain Steede -- though clearly disturbed by the loss -- preferred to look on the bright side of a dim picture.

"This was a hard game to lose after scoring so many runs,'' he said, "but we are still in the semifinals and the most important matches are ahead of us. We must put this behind us and move on.'' Bermuda's semifinal opponents tomorrow will be host Kenya, who also won on the second-to-last ball in a two-wicket result against Holland yesterday.

A victory for Bermuda would have meant an extra two days' rest, but instead they will meet a Kenya team rounding into form at Aga Khan Sports Club.

The other semifinal, between UAE and Holland, will be played on Thursday at the batting haven that is Nairobi Cricket Club.

The third-place match for the semifinal losers will be at Simba Union on Saturday with the final to take place at Ruaraka the following day.

The top three finishers will take part in the 1996 World Cup to be held in Pakistan, India and Sri Lanka.

Bermuda looked like winners from the time they went to bat until the opposing captain was dropped with the score 275 for eight and seven overs left.

Sultan Mohd Al Zarawani had made one when he hit a cover drive at chest height that Steede put down.

Zarawani went on to score an invaluable 29 from 22 balls which included two sixes and two fours while Laiq (47 not out) at the other end was steadily accumulating his runs.

Moments after the missed chance, Bermuda shot themselves in the foot further as Zarawani challenged Burgess to throw down his wicket after a defensive shot and the result was a wild effort that went for four and brought the UAE target into the teens.

Before the final rally, UAE were thankful for the contribution of number six Saleem Raza who struck 78 from 56 balls after coming in with the team struggling at 106 to four.

Bermuda fought valiantly to get into such a good position after openers Riaz Poonawala and Azhar Saeed got UAE off to a rocket start with 60 in nine overs.

Saeed was out first, lbw to Burgess for 22, and after a 42-run second wicket stand between Poonawala and Mazhar Hussain (19), Bermuda struck for three quick wickets.

First Kenny Phillip -- in for the resting Bruce Perinchief -- took a return catch to dismiss Hussain, then wicket-keeper Dean Minors took a low catch off Noel Gibbons' bowling to send back Vijay Mehra (one) and Phillip had the prized scalp of Poonawala whose on-drive was well held by Steede.

Poonawala struck the ball quickly whenever given the chance and finished with 53 from 58 balls, including six fours.

New batsmen Ishaq Mohammed and Raza grafted for a while before accelerating in a 49-run stand that ended when the former was bowled by Clevie Wade for 29.

Still, Bermuda would have no breathing room as Raza then took over the scoring role in partnership with Yohanne Samarasekara (19).

Just before the end of the 34th over, Edwards bowled Samarasekara and it appeared UAE might be done for at 217 for six but that dismissal only brought forth Laiq whose calm in combination with Raza's aggression paved the way for a stunning victory.

Raza had nine fours and a six before hitting a Gibbons' full toss right down the throat of substitute fielder Jeff Richardson on the square leg boundary to make it 250 for seven.

Laiq held the team together in a 22-run stand with Imtiaz Abbasi (eight) before his captain produced the final telling blows.

Phillip was the pick of the Bermuda bowlers with two for 40 in nine overs while Burgess took two for 61 in 9.4.

Coming into the match, UAE had the reputation of not being a great bowling team, but a great batting team. Nevertheless, after the manner in which Bermuda dominated them in the pre-lunch period such a response was not expected.

They proved the majority wrong at what finished as a packed house at Nairobi Cricket Club and taught Bermuda a valuable lesson that any total must be defended.

An opening stand of 154 between Dexter Smith and Steede, the second highest for the first and any wicket by a Bermuda pair, was the foundation of the first innings.

Both batsman gave difficult chances before reaching 20, but settled down nicely after that with the running between the wickets a feature of their union.

But it was that same zeal that ended the partnership as Steede was left stranded after Smith mis-hit a drive against left arm spinner Saeed and slipped, leaving the short third man fielder with a simple run-out to the bowlers' end.

Steede, who had just begun an all-out attack, finished on 76 from 82 balls and hit a six and five fours.

The highlight of the Bermuda innings was then unfolded as Clay Smith, just off an 89 against Ireland, blasted 71 from only 44 balls.

He also gave an early chance, but at that stage the Bermuda batsmen were going for it.

The youngster pounded two sixes and seven fours in a 116-run stand with Dexter Smith, which ranks number two for the second wicket.

Dexter Smith -- who was stuck in the nineties for almost 20 minutes while Clay Smith was beating the bowling -- finally brought up his century in the 40th over.

Then, after hitting his only six, the left-hander holed out to deep long-off.

He also hit six fours and faced 148 balls.

The rest of the inning was a slog with Charlie Marshall making 21 from 11 balls before he was dismissed in the tournament for the first time. He only now has an average and is number one in the tournament at a mark of 164.00.

The mood was a sombre one after the defeat but after a brief meeting to re-affirm the importance of tomorrow's match against Kenya, which can be expected to attract no less than 3,000 fans. The Bermuda team attended a farewell dinner last night with their heads held high.

Yesterday's Results Quarter-final group E At Ruaraka: Kenya beat Holland by two wickets. Holland 250 for eight. Kenya 251 for eight in 49.5 overs.

At Aga Khan: Bangladesh beat Hong Kong by 57 runs. Bangladesh 238 for eight.

Hong Kong 181.

Quarter-final group F At Nairobi: United Arab Emirates beat Bermuda by one wicket. Bermuda 329 for nine. UAE 330 for nine in 48.4 overs.

DEXTER SMITH -- Left-hander's maiden international century came in the 40th over against UAE yesterday.