That’s the bad news. The good news is, demand for apartments and homes to buy or rent is strong, so anyone who does buy now should see healthy capital gain. A report published earlier this year by HSBC found that prices had risen by 30% over 12 months and predicted a surge of a further 25% this year, thanks to a shortage of completed property. Rents, meanwhile, rose by 22% last year as a result of high demand from expats moving to the Emirates for work.

Thanks to record oil prices, which are swelling the coffers of local businesses and sovereign wealth funds, the UAE is not feeling the effects of the credit crunch. Mortgage finance is readily available from local and overseas lenders, at average rates of 7%-9%.

Anne Wafaa, 48, who moved to the Gulf from Scotland after marrying an Egyptian, has spent £550,000 on two flats with sea views in the Oceanscape development — one to live in and one to rent. She believes that, in the long term, Abu Dhabi will be a stronger market than Dubai because its economy is more robust and the developments are of better quality. “Dubai is great, but there is no oil, and the local economy is tourism and property, property, property — and not such great property at that,” she says. “One shock and it could head south.”

While the country has much going for it on paper — including, of course, no taxes — there are problems. Some of the developments, notably Yas Island, are close to the airport. They are therefore likely to suffer from noise pollution, especially as the number of flights to and from Abu Dhabi is likely to double in the next five years, thanks to the rapid growth of Etihad, the emirate’s airline, which was established in 2003.

Until Abu Dhabi’s new homes, museums, galleries and other developments, notably a £500,000 Warner Bros film studio, are built, it will remain “crashingly dull”, as one expat puts it. “There’s no ‘there’ there. There are only so many times can you go to the cinema or to the mall without going bonkers with boredom.” Expats also complain about the shortage of good schools. Some observers add that it will be difficult for Abu Dhabi to attract the number of multinational companies that have set up shop or opened regional headquarters in Dubai, and so keep prices increasing strongly in the long run.

For now, though, that is not deterring the early adopters — many of them Britons. Sharon Etherington, 38, from Bedfordshire, works for an Abu Dhabi-based investment firm. She has spent £350,000 on a maisonette in the Hydra development, near the airport, and a two-bedroom flat downtown.

For her, Abu Dhabi’s cultural advantages make it the ideal home in the Gulf. “It’s more real, more authentic, than Dubai,” she says. “When you go to Dubai, you feel like you are in Canary Wharf with better weather. When you come here you still have all the comforts of home, but you feel like you are at the heart of the real Middle East. It feels right.”

Sheikhs and movers

Abu Dhabi: Marina Bay, on Al Reem Island, is a 25-storey tower with residential, commercial and retail space, a gym and an infinity pool. Three-bed flats start at £520,000 through Escapes2.com; 0161 766 1018, www.escapes2.com

Ras al-Khaimah: The beachfront Pacific development on Al Marjan Island, to be completed in June 2011, is a 45-minute drive from Dubai. One-bed flats cost £105,770 with Select Property; 0870 111 8892, www.selectproperty.com

Qatar: Lusail, a 35 sq km area of undeveloped waterfront, is being transformed into a mini-city of about 220,000 people. Prices start at £250,000 for a two-bed flat with Qatari Diar; 00 974 497 4444, www.qataridiar.com

Oman: A 40-minute drive from Muscat, the capital, the Malkai has 101 four-bed villas, with prices starting at £1.9m. All come with swimming pools and will be completed in 2010. Through Cluttons; 020 7647 0865, www.themalkai.com

Times recommends

• Second homes: credit crunch casualty or money-spinner?
• How I built my own sliding house
• Top 10 incentives for house buyers