According to Abu Dhabi broadsheet The National, the emirate has emerged as a top contender to host Club Med's first resort in the UAE.

It's one of two emirates favoured by the French resort operator because of the availability of beachfront land, its environmental policies and a tourism strategy that emphasises culture and nature. Ras al Khaimah is reported to be the other emirate under consideration.

Club Med, once known for its mass-market packages aimed at the young, single holidaymaker, rebranded itself as a company offering family-orientated, luxury all-inclusive stays following the slump in world tourism post 9/11.

Gregory Lanter, vice president of global development for Club Med is quoted as saying: "At the moment we are starting discussions with groups in Abu Dhabi and we are assessing some potential sites.

"Four years ago, we were offered something on Dubai's Palm development, but we considered that it was too artificial for us, even though it's a very nice product and attracts a lot of people. It's not what we want for our brand and for our guests."

Club Med signed an agreement last Monday with Oman's Muriya Tourism Development company to open a luxury resort in Salalah, on the southern coast of Oman.

The detailed design plans for this have already been completed and it is expected to open by the end of 2012.