A decandent clash of East and West where visitors can enjoy the trappings and comfort of wealth in an exotic Arab land, Dubai is also one of the world's fastest growing tourist destinations, as Olivia Richwald discovers.

LOOKING skyward open-mouthed at today's ostentatious Dubai, it is hard to imagine that, just 40 years ago, there was just a creek and desert. On scorched and barren land, where some of the most extravagant hotels now stand, there was a small fishing village whose inhabitants eked out a living on the creek which splits the city.

Then, in 1966, oil was discovered beneath that dusty land and it financed the staggering development which has transformed Dubai into one of the most extravagant destinations on the planet.

I headed to Dubai to stay in the five star Hyatt Regency Hotel - one of the older hotels in the city - which has a revolving restaurant atop its roof like a jaunty sunhat. The restaurant offers stunning views and is the perfect place to view the relentlessly developing vista below.

There are countless luxury hotels in Dubai - the city has one of the highest occupancy rates in the world - and there are bigger and better hotels springing up every week to offer the rich, famous and sun-seeking somewhere to relax.

This is not a city that lacks confidence. Everywhere you go in Dubai claims to be six times bigger, better, longer, and more luxurious than anywhere else - especially America. It's probably an urban myth, but some claim a fifth of all the cranes in the world are seconded to enable Dubai to continue with the relentless march of its self- improvement.

When this city ran out of beaches for its burgeoning hotel industry, it dredged up the seabed into a new island. Plots on this palm-shaped paradise sold out within two days.

Two more palm islands and an island cluster, shaped like the world, are now under construction, along with Medical City, International City, a second airport, a £3bn theme park called Dubailand and a brand new underground transport system to alleviate the congestion-clogged roads.

Little of that 1960s fishing village has survived Dubai's reinvention, but it is still possible to envisage those times if you take a traditional water taxi across the creek to barter for cheap saffron in the spice souks of old Dubai.

Climbing off the water taxi and wandering among the peeling Arab dhows it is possible to imagine a time when flamboyance was a word for the western world rather than something which epitomises Dubai today.

One of the most decadent pastimes in the city must be Ski Dubai - the Gulf's first indoor ski slope and the world's third largest indoor snow dome.

Ski Dubai is inside the impressive Mall of Emirates and is a welcome break from the scorching temperatures outside. Snowboarding in Dubai has to be one of the most bizarre holiday experiences I have ever had - but it was great fun, although experts will not need long to tire of the limited slope. Skiing and tobogganing are also on offer - while the less sporty can browse the huge number of stores in the mall.

Shopping is something that Dubai specialises in. It's famous as a tax-free destination and there are certainly big bargains to be had, especially if you're in the market for gold. But prices have been rising and I was slightly disappointed that the chain stores didn't really offer much of a discount.

One of the most popular pastimes for tourists and thrill-seeking locals is a desert safari. Here you get thrown about in the back of a 4x4 while maniac drivers storm up and down the desert dunes - trying (it seems) to roll their vehicles over in the sand.

It was brilliant fun and the day was topped off with an exotic dinner, belly dancing, camel rides and hookah pipes. Whether this is an authentic Dubai experience, who can say, so much has changed in the region in the past few decades.

Oil now accounts for only ten per cent of Dubai's income. And just eight per cent of the city's population is native to the United Arab Emirates.

As a result, Dubai is about as cosmopolitan as the Arab world gets and the restaurants prove it. During my stay I enjoyed Thai, Chinese, Italian and Arabic food, but there is so much more. Celebrities like Gordon Ramsay spotted the market years ago and have set up restaurants in the city. Food is reasonably priced.

Despite Dubai's ethnic cocktail, the call to prayer which echoes around the city like an eerie fog at 4am is a reminder this is still a Muslim country.

Those who live in Dubai are immensely proud of their city and hugely friendly towards the tourists who have poured in to boost its growth. Even if you have already been to Dubai, it's worth going back - the city is literally growing day by day.