Following The Dubai Model.

Other GCC oil producers have developed similar confidence, fuelling a flurry of construction projects which are changing the Gulf landscape. Dubai, well ahead in its diversification drive to make up for dwindling oil revenues, is establishing itself as a model neighbours are trying to emulate.

Across the region, much of the investment is still going to boost production capacity in oil and gas; but tourism, finance and healthcare are among other sectors receiving priority. The FT quoted Steve Brice, regional head of research at Standard Chartered in Dubai, as saying: "In previous oil cycles, funds were largely recycled to the west. This is still happening, but now much more of it is being invested locally. And while in the past a lot of what was spent in the region was in the form of handouts, now it's being invested because they all know that the key challenge facing the region is the demographic profile - a very young population" needing to find jobs.