In this letter, we derive an analytical expression for the spatial correlation (SC) of uniform rectangular dipole arrays for a two-dimensional (2-D) spatial power spectrum, considering both Elevation spread (ES) and Azimuth spread (AS). We show that the dipole arrays have more spatial correlation than isotropic arrays, if the ES is larger than AS. The spatial correlation considering the mutual coupling is also evaluated using ldquoEmbedded element radiation patternrdquo concept. The SC with coupling almost oscillates around SC without coupling. Using Kronecker channel model, the capacity is evaluated for the Uniform Rectangular Array (URA) involving isotropic and dipole antennas. It has been found that the capacity of the array of dipole antennas is greater than that of the omnidirectional antenna array if coupling is considered and vice versa.