12th April 2006

Source: David Millward, Transport Correspondent, in Dubai (Filed: 03/04/2006) for Telegraph Money

The global interest in road-pricing technology could become a major money-spinner for the United Arab Emirates.

The country is trying to cash in on one of its own problems, the congestion on its own roads, by establishing itself as a leading provider of "telematics" - the technology which is underpinning "pay-as-you-drive" schemes around the world.

Dubai and Abu Dhabi are expected to be among the first parts of the world to introduce a true road-pricing scheme in which the movements of 700,000 cars will be tracked by satellite and motorists will be billed for when and where they drive.

Technology is being developed by IBM Consulting and CERT (the Centre of Excellence for Applied Research and Training), an offshoot of the Higher Colleges of Technology, one of the UAE's leading universities.

With approaches from other parts of the Middle East, it is anticipated that a million cars in the region will have the black boxes installed.

The team involved in the project have also received approaches from Korea, China and several cities in Europe.

While the technology is most likely to be used for road-pricing schemes, it has a number of other applications from monitoring drivers' behaviour to sending them information on the move, via an array of subscription services.

Telematics is seen as one of a number of niche markets by CERT, which is looking to embark on a number of joint ventures with leading companies including Westinghouse and Lucent Technologies.

Future plans include the establishment of a science city complete with housing for staff, a nursery for their children and the almost obligatory five star hotel for visitors.

The UAE, which is preparing itself for the "day when the oil runs out", is looking for alternative sources of income apart from its huge port and tourism.

It is tourism which catches the eye in Dubai in particular, parts of which resemble a huge construction site.

Apparently it boasts the largest density of cranes as more apartment blocks and hotels go up seemingly by the day.

But with hotel occupancy running at 87 per cent the need for more is clear and by all accounts, the holiday apartments are selling well, even if stifling humidity and temperatures which is often well over 40C make the place almost uninhabitable during the height of the summer.

Billions of pounds have been sunk into two surreal projects - The Palm and The World.

The Palm is made of three man-made islands known as The Palm Jumeirah, The Palm Jebel Ali, and The Palm Deira, which has been turned into a resort of hotels, villas and apartments.

But even that looks understated compared to "The World", a complex of 300 man-made islands, representing the globe.

"Britain" - in this case - England, Scotland and Wales - are up for grabs at a modest £19 million.

While 30 per cent of "The World" has been sold, Britain has attracted what estate agents like to call "interest" - but it remains, as yet, unsold.