A new chapter is starting in the UAE capital. The oil-rich city of Abu Dhabi is still the regional powerhouse (the UAE contains 10% of the world’s oil reserves and 94% of that figure lies underneath Abu Dhabi) and its role on the global energy stage is unlikely to be diminished in the foreseeable future. But in the face of volatile oil markets, the need for diversification is clear and the government is now pursuing alternative revenue streams, much like its high-profile neighbour, Dubai, along the Sheikh Zayed highway.

With new leisure-minded developments springing up and the government-owned Etihad Airways expanding feverishly, all the omens are positive. The airline is even considering starting flights between Abu Dhabi and Brussels, making it the first airline directly serving Brussels from the UAE. It is also planning services to Doha shortly.

Etihad has expanded rapidly since its launch in November 2003 and now flies to 16 destinations. The first of its five B777-300ERs on order is due for delivery in October, with the remainder arriving in November and December. Services recently started to Karachi, Delhi, Cairo, Dammam and Riyadh. Abu Dhabi-London Gatwick has risen to seven a week and services to Bahrain have gone daily.

Abu Dhabi’s infrastructure is mushrooming too. More malls, villas and hospitals are coming on stream, effectively mirroring the “build it and they will come” model of economic development that has proved so successful up the road.

The landmark Corniche is being redeveloped and three tunnels are being built as part of a congestion-busting measure. A huge AED 35 billion (£5.06 billion/$9.5 billion) is also being invested at Abu Al Shuoom island north-east of the city, which will contain hospitals, hotels and schools.

The hotel industry is getting in on the act too. More are appearing outside the immediate city, to capture the fly-in/fly-out market or those looking to organise a conference away from the office.

The 110-room Al Raha Beach Hotel recently opened at Khalifa City next to the airport. This is the first part of a wide-ranging development that will ultimately contain a shopping mall, 500 villas, 35 office towers and even a zoo. Getting a bite to eat won’t be a problem either, with 22 outlets due on site by the project’s completion date at the end of the year.

Even further out of town, 240km to the west of Abu Dhabi, Danat Resort Jebel Dhanna has also recently opened, marketing itself as a leisure hotel but suitable for a corporate escape too. And looming on the horizon is The Fairmont Abu Dhabi Resort & Villas, which is due to open on the breakwater island overlooking the city’s Corniche near Marina Mall in 2006/2007. The ambitious project, set to feature a network of seawater canals, 50 villas and a 2,000-metre Willow Stream spa, will firmly cement the capital’s burgeoning tourism profile.

But the big new hotel that everyone is talking about is the Emirates Palace, which opened in March and aims to be Abu Dhabi’s crowning glory.

It has the largest, most sophisticated and technologically-advanced business and conference facilities in the UAE. Destined to become an international landmark, the Palace combines sumptuous Arabian style – count the 114 rooftop domes – with standard modern hotel services that have been taken up a level. The hotel has two pools, two spa centres and no fewer than 20 food and beverage outlets providing residents and guests with every conceivable type of cuisine prepared by world-renowned chefs. The mobile office is taken to extremes with an internet “hot-zone” for total wireless connectivity wherever you may be with your laptop (poolside, on the beach, or relaxing somewhere in the expansive landscaped gardens). For less adventurous networking, impressive conference halls, meeting rooms and a media centre are also on site.

With Abu Dhabi being built on a fairly small island, just about every hotel can claim to be “close to the commercial district”. Corporates can therefore let personal preferences come into play rather than book a hotel purely because of its physical location. There’s little to choose from the major hotels in terms of comfort levels, so your choice might well boil down to in-room facilities, dining outlets and leisure features.

Investment has been flooding into health clubs, gyms and spa centres in recent years and now money is being injected into higher quality business facilities. The InterContinental now goes as far as offering daily rental terms for phone/fax, mobile phones and laptop computers, enabling executives to travel light. This service is hardly unique, but it is having a positive effect on decision-making PAs who need to know that constant contact is possible.

And then there’s the leisure element. Abu Dhabi seems to be getting its act together in terms of updating its time-out facilities. Recommended watering holes include the Tavern (at the Sheraton), the Cellar (at the Howard Johnson Diplomat) and the Captain’s Arms (at Le Meridien). For cool café culture check out the Lebanese Ninar on Khalifa bin Zayed Street or for Italian, the place to go is BiCE, which recently opened its doors at the Hilton Abu Dhabi, which also houses the popular Hemingways (Tex-Mex). Night owls frequent Zenith at the Sheraton Abu Dhabi and for those looking for fresh air, The LAB at Beach Rotana Resort & Towers is perfect with its outside decks and bean bags. The hotel recently opened Finz, a new standalone seafood restaurant too.

Food and beverage managers are being kept on their toes with hotel competition increasing and standards rising across the board. Apart from the Emirates Palace and Al Raha Beach, other big names soon to enter the fray include Fairmont, Hyatt, Marriott and Movenpick.

The Hilton Abu Dhabi, one of the oldest hotels in the city, acknowledges that it is having to change with the times. Food and beverage manager Ahmed Margoushi said:”Some of our facilities have outlived their era. Abu Dhabi has grown up a lot recently, and old tired concepts need to be re-thought. The city no longer needs complicated old school sophistication, but rather a more vibrant and chic dining culture.” ¦

Other developments

– The Abu Dhabi government has allocated $27.2 million (£14.4 million) for development and investment of Lulu Island. The island, one of the biggest tourism ventures in the world, involves the construction of hotels, restaurants, gardens, an aquarium, a museum, and a wildlife reserve. Work on the island, located about 600 metres off the Abu Dhabi coast has already started, with the planting of more than 600,000 palm trees.
– A new project is under way at Dalma Island, 180km west of Abu Dhabi. The $40.8 million (£21.7 million) redevelopment includes a new harbour, a shopping centre, mosques, cinemas and various entertainment and recreational facilities.
– The first of six refurbished Gulf Air Airbus A330s has now entered service on the Abu Dhabi-London route, with five others to be upgraded between now and July. Each of the Class 180 seats can be transformed into a fully functional bed, with sheets and duvets, over-sized pillows, silk cushions, pyjamas, eye shades and socks.
– Abu Dhabi International Airport has recently announced $254 million (£135 million) expansion plans that will include a futuristic new satellite terminal. The expansion is set to increase the airport’s present capacity from 4.3 million to 7.2 million within a five-year period from its launch.

Getting there

London-Abu Dhabi Served by British Airways and Gulf Air from Heathrow. Also served by Etihad from Gatwick and Heathrow. Return fares with BA: first class £3,406, business class £2,299, economy class from £318.
New York-Abu Dhabi First class varies $13,446 to $9,256; business class varies $9,640 to $5,338; full coach $6,755 to $3,404; 7-day apex $925-low season; $1,115-shoulder season; $1,272-high season; recent sale $884. No non-stop or direct service offered. The best daily connection is London, including an early departure on American Airlines that leaves 8.30am and arrives in Abu Dhabi at 8.40am on Gulf Air from London. Alternatives are Paris and Amsterdam; all are daily from either JFK or Newark. Emirates operates daily via Dubai and Amman works on Tuesday, Friday, Saturday and Sunday.
Los Angeles-Abu Dhabi First class varies $15,934 to $10,208; business class varies $11,842 to $7,220; full coach $8,627 to $4,992; 7-day apex $1,355-low season; $1,545-shoulder season; $1,704-high season; resent sale $1,229. No non-stop or direct service offered. The best daily connections are via London, Frankfurt and Amsterdam, or via Munich on Monday, Wednesday and Friday, Paris on Wednesday and Sunday, or with an extra transit on Monday, Friday and Saturday. Frankfurt connections are daily,but with an extra transit on the Frankfurt-Abu Dhabi flight.