The world’s biggest live music companies are to take their battle for supremacy to the Gulf states after announcing plans to turn the region into the next lucrative staging post for rock’s biggest stars.

Anschutz Entertainment Group (AEG), which reinvented the Dome as a live music venue, plans to lure acts such as Prince and Bon Jovi to the United Arab Emirates (UAE) to perform in new, purpose-built arenas.

Live Nation, the world’s largest concert promoter and AEG’s leading global rival, is beating a similar trail. It has acquired a controlling stake in Mirage, a leading Dubai-based promoter, which has hosted concerts by Aerosmith and Shakira. Madonna, who has signed an exclusive music and concert deal with Live Nation, is expected to add Dubai, the UAE’s main city, to her tour circuit.

The race to bring rock and pop to the Gulf is part of a wider effort to develop the region as a centre of tourism. Emirates is intent on making itself the world’s airline of choice, for example, a world in which millions use it to fly to the area’s rapidly expanding resorts and developments. Those resorts are already among some of the most exclusive on the planet, The World, perhaps the best-known of them, and its peers built on so grand a scale that they can be seen from space. And some of music’s most famous names are allegedly buying their slices of these exclusive spots.

Yet if the superstars are intent on spending money on seven-star hotel suites and private islands, the Gulf remains a source of untapped income. Despite a wealthy expatriate population, a young music-loving local audience and the fact that 15 million visitors are expected to visit Dubai in the next decade, the Gulf region has yet to establish a consistent infrastructure for live music.

With live performances replacing record sales for artists’ pension plans, the region, overlooked so far by the likes of U2 and the Rolling Stones, is seen as the next frontier for promoters to conquer. AEG Live has hired Thomas Ovesen, the man behind some of Mirage’s biggest concerts, to oversee a new live promotions office in Dubai. AEG Live hopes to operate arenas in Dubai and Abu Dhabi, seating 10,000 to 15,000 fans and styled after its own O2 in London, inside two years. Mr Oveson plans to draw young, wealthy music fans from neighbouring states by staging Las Vegas-style residencies featuring big names.

Mr Ovesen said: “My vision is that the UAE will be the hub for entertainment for the entire region. We believe the O2 model, where Prince played 21 nights, could really work in the region. The right type of artist can expect to clear $1 million. But until now, the local live music scene has been fairly insignificant.”

AEG plans to host Broadway musicals as well as pop concerts in its new arenas, with the shows marketed at foreign expats living in Bahrain, Qatar and Oman. The company has promised to balance ticket prices so that the local Asian population can attend. Randy Phillips, president and chief executive of AEG Live, said: “A presence in that region is very important to us in terms of growth and finance opportunities.”

His Dubai-based rival Mirage Promotions, which secures acts such as Diana Ross and Bryan Adams for corporate clients in the region, will be rebranded as Live Nation after the US giant took a 65 per cent controlling stake. Elissa Murtaza, its managing director, said: “Whilst our current focus is to be on the burgeoning UAE, our position in the Middle East provides us with the opportunity to expand our operations. Our new partnership with Live Nation will help us to accelerate our growth by providing us better access to talent and resources.”

The Gulf does have a flourishing local music scene, which is reflected in the recently launched MTV Arabia service and the arrival of a concert infrastructure, but it does present some logistical problems for touring international rock stars. Some artists have been unwilling to undertake a four-day round trip to Dubai for a one-off show. Promoters also have to make provision for an entirely car-bound audience. This month Celine Dion played her first Dubai concert, at the Four Seasons Golf Club, charging £135 for a platinum seat. Organisers had to promise the authorities smooth-flowing traffic and car-parking for 9,000 vehicles before the concert could take place.

Western stars will have to respect local sensibilities. Last month, the Radio 1 DJ Grooverider was sentenced to a four-year prison term in Dubai after admitting to carrying cannabis into the country. “They can have the rock’n’roll but not the sex and drugs,” Mr Oveson said.

He added: “Given the wealth of the country, the possibilities for charging for high-end, quality shows are endless. Frankly, if Elvis were alive, he’d consider a visit to Dubai in the next couple of years. I believe the future is here.”

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