Formula One Administration has revealed that a Formula One theme park, which will include F1 themed entertainments, together with a hotel and conference centre, is to be built in Dubai.

As details of the project were unveiled in Shanghai, Bernie Ecclestone said: "I have every confidence it will be an outstanding development."

Construction of the development, which will be undertaken by Union Properties, will begin next year, with the theme park opening to the public in 2008.

Dubai, which has its own highly regarded Autodrome, built by Union Properties, is already involved in motorsport, courtesy of Sheikh Maktoum's A1 GP series which got underway last month. The theme park is seen by many as the next (logical) step towards the country hosting a round of the Formula One World Championship.

Union Properties chairman, Anis Al Jallaf, said: "This is another landmark in the rapidly developing landscape of 21st century Dubai and is in line with the vision of His Highness Sheikh Mohammed Bin Rashid Al Maktoum.

"We are intent on creating the most exciting and imaginative theme park in the world," he added.

The news of the theme park will add to speculation that a Middle Eastern group is looking into entering F1 with its own team, though it is highly unlikely that this is the venture proposed by John Byfield and Russell King, the men behind Jenson Button's former management company Essentially Sport, in 2004.