Abu Dhabi do! PHILIPPA CLARKE gushes over one of the world's richest cities... where billion- dollahotels are just the beginning.

Byline: PHILIPPA CLARKE

ONLY 50 years ago, Abu Dhabi was a desert settlement of mud huts and palm trees, completely overshadowed by its glam neighbour Dubai.

But today, the island by the shores of the Arabian Gulf is more than a match for that millionaires' playground.

With pristine white beaches, sumptuous shopping malls and every sporting opportunity imaginable, this luxury destination is also the capital of the United Arab Emirates.

Why such a massive change? Oil. Today, where once there was only desert, there's a verdant corniche - or promenade - surrounding five miles of bleached sand beaches.

Fountains intersperse the flowers and trees, and everywhere is immaculately clean and well-maintained.

It's a wonderful spot to stroll along in the relative cool of the evening.

For sports enthusiasts there are five excellent golf courses surrounding the city and every kind of water sport, as well as horse and camel riding. As if to underline how flash this island has become, Formula 1 is making its debut here in the autumn when it hosts the last race of 2009.

And the brand-new Yas Marina circuit must surely be one of the sport's most exotic even by F1 standards.

However, the essence of the old Bedouin settlement that Abu Dhabi sprang from can still be found in nooks and crannies.

There's a Heritage Village which gives a glimpse into how life was before the capital struck black gold.

And the oldest part of town - the Batin area - is still abuzz with colourful dhows delivering their catch to the enormous fish market.

The vegetable markets are a riot of green and red, with watermelons and cabbages nestling among peppers, exotic fruits and dates.

Before oil, dates were the mainstay of the economy and exotic spices still scent the air. Our base at the Rotana Beach Front hotel is excellent for exploring.

With its colonial feel, it runs like clockwork and offers only the very best in cuisine and service.

Most importantly, the private beach and swimming pool offer a welcome relief from the heat.

A glam touch here is a passage connecting the hotel directly to the glossy shopping mall - dangerous for the shopaholic.

But after an exhausting bout of retail therapy, what better than a dip in the jewel in the hotel's crown - the new Zen Spa? Rotana is building another hotel to be ready in time for the Grand Prix, allowing race fans to view it from their hotel balcony. As you do.

Far behind the bustle of Abu Dhabi, on the opposite side of the peninsular, lies Fujairah which sits on the Indian Ocean and is flanked on either side by Oman.

Leaving the capital we can see that the area surrounding it is being developed at a furious pace, bringing to mind a giant sand pit, littered with dumper trucks and diggers. But it isn't long before we arrive in real desert.

The road wanders through little villages huddled around mosques and finally winds up through the mountains then down to Fujairah and the Rotana Resort and Spa, at Al Aqah Beach.

This hotel sits right on the shore, with mountains rising behind.

For the moment it is an unspoilt oasis - however, there are plans for expansion.

A private beach, fitness centre, kids' club, temperature-controlled swimming pool (yes, they have to cool it down!), floodlit tennis and squash courts, and a water sports centre with diving courses.

There really is no need to leave but a must for me was a trip across the border into Oman.

I took a dhow cruise from Musandam and went for a swim in the Indian Ocean beside the rugged Omni coastline.

Then we sailed back to shore as the sun set behind the mountains.

Now, that's what I call a truly magical Arabian night.

THE FACTS

WHEN TO GO?

Avoid the heat of midsummer, when temperatures can soar to more than to 48C (118F). September through to early June are the most comfortable months.

WHERE TO GO?

It's worth taking a two-centre trip to experience the full contrast of the bustling city with the calm of Fujairah.

WHAT TO BUY?

Carpets, spices, pottery, gold jewellery (make sure you haggle).

WHAT TO DO?

Absolutely anything your heart desires.

WHAT NOT TO MISS?

The spa experience - it is regarded as a necessity rather than an indulgence.

CAPTION(S):

COOLING Philippa chills out GULF STREAMS: Traditional fishing dhows in Batin harbour